AN ACT to convert the school bus fleet to electric buses by 2050 and to establish a grant program to assist small counties in converting activity buses to electric.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 115C‑249 is amended by adding a new subsection to read:

(a1)    Beginning with the 2026‑2027 school year, any new school bus purchased shall be electric, whether purchased as a replacement or an additional bus purchase. By the end of the 2049‑2050 school year, local school administrative units shall ensure all buses it operates are electric.

SECTION 2.  Article 17 of Chapter 115C of the General Statutes is amended by adding a new section to read:

§ 115C‑247.1.  Electric activity bus grant program.

(a)        Program, Purpose. – To the extent funds are made available for the purpose, the Department of Public Instruction shall establish and administer the Electric Activity Bus Grant Program (Program). The purpose of the Program is to assist local boards of education in purchasing new or replacement activity buses that run on electricity.

(b)        Eligibility. – Any local school administrative unit that is eligible for small county school system supplemental funding under G.S. 115C‑472.23 is eligible to apply for a grant under the Program.

(c)        Application. – Local school administrative units may apply to participate in the Program pursuant to a process to be established by the Department of Public Instruction.

(d)       Awards. – In evaluating applications, the Department shall prioritize awarding grants to local school administrative units that have not previously received a grant through the Program. The Department shall issue awards in an amount sufficient to cover up to fifty percent (50%) of the purchase price of an electric bus. Local school administrative units shall use funds awarded pursuant to the Program for the purchase of electric activity buses or the purchase or installation of electric bus charging equipment.

(e)        Report. – No later than February 15 of each year in which funds are made available for the Program, the Department of Public Instruction shall report to the Joint Legislative Education Oversight Committee on at least the following information:

(1)        The local school administrative units that received awards under the Program and the amount received.

(2)        The total number of applications for the Program.

(3)        The number of applications that were not funded and the amount it would cost to fully fund all applications.

SECTION 3.  There is appropriated from the General Fund to the Department of Public Instruction the sum of three hundred fifty million dollars ($350,000,000) in recurring funds for the 2026‑2027 fiscal year to be allocated to the school bus replacement fund to assist with the purchase of electric school buses as required by Section 1 of this act.

SECTION 4.  There is appropriated from the General Fund to the Department of Public Instruction the sum of fifty million dollars ($50,000,000) in recurring funds for the 2026‑2027 fiscal year to be allocated through the Electric Activity Bus Grant Program established by Section 2 of this act.

SECTION 5.  This act is effective when it becomes law and applies beginning with the 2026‑2027 school year.