Electric school bus manufacturer GreenPower Motor Company signed a multimillion-dollar contract with New Mexico for a pilot program at the same time it is facing obstacles with a similar West Virginia project and perilous corporate finances.

The company announced Aug. 4 that the $5 million-plus New Mexico contract resulted from an award made by the state under a request for proposals published in May for participation in a two-year, all-electric school bus pilot project. GreenPower stated the project would deploy three Type A Nano BEAST school buses during the 2025-2026 school year, and three Type D BEAST and Mega BEAST school buses in the coming months.

Those vehicles, the first three scheduled for deployment the week of Sept. 15, are expected to “rotate around the state in five pilot rounds each school year with each round lasting six weeks.” The company, which is partnering with Highland Electric Fleets to install and implement the necessary charging infrastructure, will also provide training for the school bus drivers, mechanics and the community’s first responders to “help ensure a seamless testing period.”

GreenPower President Brendan Riley said via a press release that the New Mexico project is “leveraging the successful pilot that GreenPower conducted in West Virginia but also has a concentration on evaluating charging options and infrastructure.”

At the same time, GreenPower has faced several headwinds this year in West Virginia with a similar contract that also began with a pilot. The electric school bus manufacturer took ownership of its South Charleston plant in August 2022 and eight months later entered into an agreement with the state to sell $15 million worth of BEAST and Nano BEAST models. The state also agreed to pay GreenPower a $3 million deposit.

Separately, GreenPower and the state signed an agreement for an additional $18.6 million in ESBs awarded by the EPA Clean School Bus Program in 2024 to seven county school districts.

But West Virginia Metro News reported last month GreenPower had only delivered about a dozen of the promised 41 ESBs as of this past spring.

The state claims breach of contract. GreenPower CEO Fraser Atkinson said the reality is far more nuanced. During a phone call Thursday, Atkinson told School Transportation News several factors have hindered the company’s ability to deliver the ESBs.

“We have either delivered or we had vehicles ready to go, to be delivered to every single one of those counties,” he said.

Among the issues, Atkinson added, some school districts have not signed required documents with the EPA and GreenPower’s West Virginia dealer, Matheny, to accept the ESBs. In at least one other case, Atkinson said a county did not have available the older diesel school bus EPA required to be scrapped, so the new ESB couldn’t be delivered.

“Even if the dealer came forward and said, well, don’t worry about this other part, let’s just deliver the vehicle, you still have to worry about it,” he added. “We [would not be] compliant with the program.”

He also noted some counties still don’t have electric infrastructure installed. While GreenPower could still deliver those school buses, Atkinson noted that ESBs can’t sit in a parking lot for months on end without being operated like internal combustion vehicles can.
“There’s a much higher level of ongoing maintenance that you need to have on these vehicles if you’re not using them almost every day,” he added.

A West Virginia official contacted by STN declined comment because the issue is ongoing, and a request for comment from Gov. Patrick Morrisey’s office had not been answered at this report.

Hiccoughs With State Inspections and Maintenance

Meanwhile, Atkinson said some counties are having success with GreenPower. But not all say they are. Tony Harris, transportation director for the Monongalia County Schools serving the Morgantown and surrounding area, said the state’s second-largest district received a GreenPower Beast and a Nano Beast, which met his expectations at first.

However, he added, “We have been working with the West Virginia Department of Education, Department of Transportation and GreenPower in regard to a few issues where the buses do not meet the state specifications for a school bus.”

Harris clarified that the unmet state specifications center on failed state inspections for items such as the parking brake release, the color of loading light switches, non-working window defroster fans, and controls for exterior mirrors not working.

Atkinson said GreenPower has worked closely with the state on specifications but commented that not all state inspectors may have the same perspective on what constitutes an out-of-service item, especially as this could be their first experience with an electric school bus.

Still, he noted that any issues keeping school buses sidelined are “a concern.”

“Is there an educational process? I think you’re absolutely right. In hindsight, if all the parties had been in the same room 2 1/2 three years ago and worked through [the issues] …,” he said. “But the flip side is, until you’re actually in the field looking at these things in real time, you probably couldn’t have guessed what all the different issues or potential considerations that needed to be discussed are at the outset. It is a bit of trial and error.”

Harris also expressed disappointment about school bus-related services, which is “an area that has not come close to meeting expectations set for all vendors.”

“We have not been able to obtain stock inventory to have on-hand when something breaks on one of the buses,” he continued. “We have requested training several times for our mechanics on how to service the buses for our preventative maintenance schedules. The mechanics have received some training when representatives have been onsite to address issues when they have been onsite, but no formal training has been provided.”

He said training has so far consisted of what to do in the case of a battery issue or fire.

“A lot of the preventive maintenance items are typical in all school buses, but there are some unique things when it comes to EV school buses,” he said. “Also, we have no access to software or manuals to diagnose problems when they arise. We have requested these products at different times. We have these products for other bus types.”

Atkinson commented that GreenPower is very concerned about any high-voltage work necessary on its school buses.

“Our approach is, until they’re up to speed with the basics, we like to or prefer to take responsibility for anything that could be related to the high-voltage battery system,” adding dealer Matheny has limited experience working with GreenPower’s technology.

Harris said that the district has had to adjust its operations “considerably” after the delivery of the buses.

“We have two of the Nano BEAST buses in our fleet that have run no more than a month on routes since we took delivery of them. These buses have less than 3,000 miles on each of them,” he said, adding the school buses serve special needs and McKinney-Vento student populations. “We have four of the BEAST buses in our fleet, and one has been off the road since June due to defects found during an annual state inspection of the bus. The other three BEAST buses have been taken off the road [last] week due to issues that do not allow us to continue to use them at this time. By taking these buses off the road, it has impacted our bus routes due to the capacity of the buses and not having the same size buses in our spare bus fleet. The one BEAST bus has just over 4,000 miles on it, and this is because it was part of the state pilot program. The other three have less than 3,000 miles on them.”

Meanwhile, John Droppelman, director of support services with the Mineral County Schools, said in an email, “We have not received our two GreenPower buses. We have not received any information from GreenPower in quite some time. I do not expect to ever receive the promised buses. Information about the production and distribution of the GreenPower buses is scarce.”

Atkinson commented, “It’s the early days and there are things that have to get sorted out.” But he continued that, across the electric school bus market, he sees some school districts that have yet to buy-in to electrification, which complicates matters.

“If you have a good partner, they’ll work with you, and they’ll get the vehicles to a place where they’re just not encountering many issues or problems,” he said.

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At the same time, GreenPower has been unable to fully staff its South Charleston manufacturing facility. The agreement with West Virginia listed the goal of 900 jobs filled by the end of last year.

“We don’t get paid a cent until a bus is delivered,” Atkinson told STN.

In turn, he added, the company cannot promise its plant workers the necessary weekly hours.

The West Virginia MetroNews Network reported May 26 that confirmed more than a dozen employees had been notified by email three days earlier that they had been laid off. The company did not confirm the exact number of employees who had been laid off, but the network quoted GreenPower’s Riley saying, “The imposition of new tariffs has significantly increased our operational costs and disrupted our ability to build and deliver buses in a timely manner.”

He added that restructuring and other cost-cutting measures were not sufficient to prevent the layoffs.

MetroNews reported last month that GreenPower indicated it employed fewer than 100 workers even before the spring layoffs.

Resulting Financial Uncertainty

Amid all of this, BDO Canada LLP released its independent audit of GreenPower as of March 31, which stated that “the company has suffered recurring losses from operations and has an accumulated deficit that raises substantial doubt about its ability to continue as a going concern.”

A statement by GreenPower issued in July of its financial status at the time noted that revenues for the fiscal year that ended March 31 fell 49.5 percent from the previous year — down from $39,271,839 to $19,847,279 — and experienced a total comprehensive loss of $18,511,895.

GreenPower contends that tariffs are “causing much harm to the entire school bus manufacturing sector. This business instability and the significantly increased costs impacts all school bus manufacturers whether they are producing electric, diesel, propane, or gas school buses. The implications are staggering. If a school bus manufacturer were able to pass these costs on to a school district, it would amount to a tax on the government as the cost would be paid by either local, state or federal government funding.

“But a school bus original equipment manufacturer (OEM) cannot pass on the increased cost since there are state contracts in place for the purchase of school buses,” the company continued. “The new tariffs leave no pathway for a school bus OEM to build vehicles in the U.S., and it completely halts GreenPower’s efforts to on-shore and friend-shore the supply chain, especially non-Chinese battery cells and components.”

An interim Q1 2026 earnings statement released Aug. 15 for the period ending June 30 showed gross revenue fell by 48 percent from the same period last year to $1.549 million, with gross profit at $361,682 after deducting the cost of sales, which actually represents a 63 percent increase from June 2025.

But the statement notes Greenpower anticipates it will not be in compliance with the minimum debt service coverage ratio at the end of the current fiscal year because it has not generated positive EBITDA in the previous four quarters. The outstanding balance on the term loan facility was $3.59 million as of June 30.

The interim statement echoed the warning of the auditor this spring.

“The company’s ability to achieve its business objectives is subject to material uncertainty, which casts substantial doubt upon the company’s ability to continue as a going concern,” it says.

Ryan Gray contributed to this report.

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U.S. Secretary of Transportation Sean Duffy rides on a FrontRunner train in Salt Lake City during a media event on Monday, April 7, 2025. (Photo by McKenzie Romero/Utah News Dispatch)

Three states are at risk of losing some federal transportation funding because they are not enforcing President Donald Trump’s executive order that commercial truck drivers must be proficient in English, U.S. Transportation Secretary Sean Duffy said Tuesday.

New Mexico, Washington and California will have 30 days to comply with the order or risk losing funding from the Federal Motor Carrier Safety Administration — among the smaller of the Transportation Department’s agencies — Duffy said, standing behind a lectern with an “America First” banner on it at the department’s Washington, D.C., headquarters.

California stands to lose $33 million, Washington could lose $10.5 million and New Mexico would lose $7 million, Duffy said. He urged the states to comply with the executive order, which Trump signed in April and took effect in June, or face increasingly draconian penalties.

“We don’t want to take away money from states,” Duffy said. “But we will take money away and we will take additional steps that get progressively more difficult for these states. There’s a lot of great tools that we have here that we don’t want to use.”

All three states contributed to a Florida crash this month in which three people were killed, Duffy said. The truck driver involved had a commercial license from California and Washington, and had been pulled over for speeding in New Mexico prior to crashing in Florida, Duffy said.

“So this one driver touched all three states,” he said.

The Florida driver, an immigrant from India who did not have permanent legal authority to be in the country, made an illegal U-turn on the Florida Turnpike, according to local reports.

Duffy said the Florida driver did not understand road signs, but did not further specify how his lack of English comprehension led to the crash, which reportedly involved making a U-turn across lanes of traffic. But Duffy repeatedly said the issue was one of safety.

Duffy said that when the Trump executive order went into effect, it received negative publicity.

“There was a lot of press that complained to us that we were being unfair to people, that we were being mean to people,” he said. “And what we said was, ‘No, this is a safety issue.’ Making sure drivers of very heavy, 80,000-pound rigs can speak the language is truly a critical safety issue. And some complained about it.”

Newsom hits back

On social media, California Gov. Gavin Newsom’s press office said the federal government approved a permit for the Florida driver.

“This is rich,” Newsom’s office wrote on X. “The Trump Administration approved the federal work permit for the man who killed 3 people — and now they’re scrambling to shift blame after getting caught. Sean’s nonsense announcement is as big a joke as the Trump Administration itself.”

A DHS spokesperson denied the federal government issued the driver a work permit and blamed Newsom.

“These innocent people were killed in Florida because Gavin Newsom’s California Department of Motor Vehicles issued an illegal alien a Commercial Driver’s License—this state of governance is asinine,” a spokesperson wrote in an email to States Newsroom.

Newsom has increasingly over the past few months used his social media channels to mock Trump. 

Washington State Patrol spokesman Chris Loftis wrote in an email that the agency was “reviewing the matter with our state transportation partners” and would soon have a more detailed response.

A spokesperson for Washington Gov. Bob Ferguson, a Democrat, said he had not received Duffy’s letter. 

“We will review it when we receive it and carefully evaluate next steps,” the spokesperson, Brionna Aho, said. 

That state’s Gov. Bob Ferguson, a Democrat, made a defiant statement last week about complying with the Trump administration’s demands on immigration enforcement.

“Washington State will not be bullied or intimidated by threats and legally baseless accusations,” he wrote to U.S. Attorney General Pam Bondi.

He has amplified that message several times since.

The New Mexico Department of Transportation deferred a request for comment to the state’s Department of Public Safety, which did not immediately respond to a message seeking comment.

Investigating testing

Duffy said he was puzzled by commercial drivers who were able to pass a skills test without understanding English, and said the department was investigating that issue.

“This is something we’re looking at and working on when someone, an individual, comes in to take their test to become a commercial driver, and then they do a skills test… at that point, it would be clear that this driver doesn’t understand all the road signs and doesn’t speak the language, but miraculously, they’re passing the skills test,” he said. “I think any common-sense analysis would say, well, that doesn’t make sense.”

The federal department would be looking at whether the skills tests are being correctly administered and whether there is “some gaming of the system that we have to address.”

SANTA FE, N.M., – GreenPower Motor Company Inc. (Nasdaq: GP) (TSXV: GPV) (“GreenPower”), a leading manufacturer and distributor of all-electric, purpose-built, zero-emission medium and heavy-duty vehicles serving the cargo and delivery market, shuttle and transit space and school bus sector, today announced it has signed a contract with the state of New Mexico to implement an all-electric school bus pilot project. The contract is the result of an award made by the state under an RFP published in May.

The two-year pilot project will deploy three GreenPower Type A all-electric, purpose-built, zero-emission Nano BEAST Access school buses in the first school year (2025-26), and three GreenPower Type D all-electric, purpose-built, zero-emission BEAST and Mega BEAST school buses in the second school year (2026-27). The shool buses will rotate around the state in five pilot rounds each school year with each round lasting six weeks. GreenPower will install charging systems, provide training for the drivers, mechanics and the community’s first responder and help ensure a seamless testing period.

The contract between GreenPower and the state of New Mexico provides more than $5 million for the purchase of vehicles, cost of charging infrastructure and overall management of the pilot. GreenPower will support the implementation of the project from a location to be established in New Mexico. Based on voluntary requests to participate, school districts are currently being selected by the state to participate in the pilot. The manufacturing of the three Nano BEAST Access school buses is substantially complete and they will be ready for deployment for Round 1 the week of September 15.

“The New Mexico pilot project provides an opportunity to expand the reach of GreenPower’s zero-emission school bus product and gives parents, kids and school districts in the state the opportunity to evaluate the transition to all-electric, purpose-built school buses,” said GreenPower President Brendan Riley. “The project is leveraging the successful pilot that GreenPower conducted in West Virginia, but also has a concentration on evaluating charging options and infrastructure.”

The pilot will include both Level 3 DC fast chargers and Level 2 slow chargers for the Nano BEAST Access school buses, and will evaluate Level 3 DC fast charging in the second year with the BEAST school buses. A part of the second year will be a vehicle-to-grid (V2G) evaluation using the GreenPower Mega BEAST. The Mega BEAST is a 40-foot Type D all-electric, purpose-built, zero-emission school bus that delivers a class-leading range of up to 300 miles on a single charge because of its massive 387 kWh battery pack. The range of the Mega BEAST is greater than any electric school bus in it’s class. It has more uphill climbing power and the most compelling and cost effective V2G capability for a more stable electric grid and community sustainability in areas where it is deployed.

“We are particularly interested in evaluating charging as a part of the pilot project,” said Mark Roper, Director of the Economic Development Division within the New Mexico Economic Development Department. “Range, charging rates and grid resiliency are critical components of switching to all-electric, zero-emission vehicles.”

GreenPower is partnering with Highland Electric Fleets to install and implement the charging infrastructure necessary for the pilot. In a letter to the state, Highland’s Chief Commercial Officer Brian Buccella shared the company’s commitment to supporting GreenPower in assessing charging infrastructure and creating a reliable EV pilot project in New Mexico. “Our experience delivering and operating electric school buses at scale positions us well to assist in the successful execution of this pilot program. This initiative presents an opportunity to reduce transportation-related emissions in New Mexico communities, protect student health and modernize school transportation,” Buccella said.

About GreenPower Motor Company Inc.
GreenPower designs, builds and distributes a full suite of high-floor and low-floor all-electric medium and heavy-duty vehicles, including transit buses, school buses, shuttles, cargo van and a cab and chassis. GreenPower employs a clean-sheet design to manufacture all-electric vehicles that are purpose built to be battery powered with zero emissions while integrating global suppliers for key components. This OEM platform allows GreenPower to meet the specifications of various operators while providing standard parts for ease of maintenance and accessibility for warranty requirements. GreenPower was founded in Vancouver, Canada with primary operational facilities in southern California. Listed on the Toronto exchange since November 2015, GreenPower completed its U.S. IPO and NASDAQ listing in August 2020. For further information go to www.greenpowermotor.com

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