A curious thing happened in New York State last month. While it is normal each spring
for states to approve budgets for the coming fiscal year, and adding all sorts of funding
provisions, New York legislators took the opportunity to address school bus electrification.

What’s so abnormal about that, you ask? After all, the state is staring down a 2027 deadline for all school districts and bus contractors to only purchase zero-emission school buses, in other words battery-electric.

The budget added another year extension to 2029 for school districts demonstrating hardships in meeting the compliance date, and that’s a good thing. At the same time, legislators included a provision that seemingly makes selling and buying electric school buses that much harder.

Article 11-C calls for independent, third-party estimated range testing in all operating conditions. School bus dealers will need to provide real-world data (or as closely replicated as possible) that demonstrates how range is affected by different road conditions, topography and weather. And by Jan. 1, 2026, no less. While the industry
desperately needs accurate, real-world range estimates rather than perfect-world scenarios that don’t exist, the possibilities under this budget are arduously endless.

Like with most legislation, the devil is in the details. And this budget lacks a lot of it.
The New York State Energy Research and Development Authority (NYSERDA) administers the New York School Bus Incentive Program, which supports the adoption of electric school buses across the state. A spokesperson told me, “many engineering firms and other companies across the country focus on testing buses, which could include the range of buses.” But NYSERDA doesn’t maintain a list of names.

Institutions like West Virginia University’s Center for Alternative Fuels, Engines and Emissions come to mind, but at what price? A representative there had not responded to my question on the feasibility of such a project. The logistics of each manufacturer shipping a year’s worth of electric school bus orders to a testing facility or facilities
makes no logistical or financial sense. Then, there’s the question of how to test. An electric vehicle expert I spoke with said testing an electric school bus on a dynamometer could cost well over $50,000.

That’s before finding a climate-controlled room to mimic all the different weather conditions not to mention road surfaces. It is certainly improbable if not impossible
to physically test drive each school bus on all conceivable types of routes throughout the state.

The NYSERDA spokesperson added that specialized equipment is not necessary, “just buses and a comprehensive testing plan to compare buses and track energy use and miles driven.”

But no such plan for school buses currently exists, according to industry insiders I spoke with. There is statistical data collection for other electric vehicles that could serve as a starting point. The National Renewable Energy Laboratory also has a free data logger that is compatible with telematics systems but is only working with a half-dozen fleets so far.

Meanwhile, the New York fine for noncompliance with the testing, enforced on Jan. 1, is $1,000 per bus. NYSERDA did not respond to a question on where fine revenues would go. Funding a program to help school districts purchase electric school buses and infrastructure would be a good place to start, or to fund the testing it calls for. But who’s to say school bus dealers don’t simply take the fine and proceed with the sale, and pass through the additional costs to customers?

I hear the provision was added to the budget by legislators as a counterbalance to extending the school district waiver and because of the contrast between OEM range estimates and actual range from the field. Expect ongoing discussions in Albany throughout the summer and fall. Realistic electric school bus range data is sorely needed,
there’s no question about that, and existing telematics data from each school bus model and each battery configuration is the key. Take that data and quantify by weather, road conditions and geography. I’m simplifying, of course. The challenge remains that there aren’t enough electric school buses on the nation’s roads yet, much less New York’s, to account for every type of route in every climate. But it’s a start.

The work needs to begin yesterday, or legislators need to fix the provision, to avoid a winter of discontent in the Empire State and possibly beyond.

Editor’s Note: As reprinted in the June 2025 issue of School Transportation News. NYSERDA responded to comments after the article went to print, noting that penalties for violations may be recovered by the attorney general, per Section 199-p of the General Business Law.  Find more updated information on the state budget. 

Related: New York Gov. Hochul Open to Extending Electric School Bus Mandate
Related: New York Pushes Forward with Electric School Bus Mandate Despite Opposition
Related: (STN Podcast E209) Let’s Get Into It: NY Organization Tackles Nitty Gritty of Fleet Electrification
Related: State Budget Calls for Real-world Range Testing for Electric School Bus Sales

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Representatives from top school bus and powertrain manufacturers will provide insights into the complex landscape of school bus emissions and regulatory challenges facing the industry over the next couple of years during STN EXPO West in Reno, Nevada.

Scheduled for July 13, the panel session will feature representatives from Blue Bird, Cummins, IC Bus, RIDE and Thomas Built Buses.

The panel will explore several pressing topics, including impacts of the Congressional Review Act signed by President Trump early this month, EPA Clean School Bus funding developments, the impact of an ongoing federal review of the EPA Phase 3 Greenhouse Gas regulations, supply chain considerations, workforce development for electric school buses, and more.

With ongoing legal challenges and shifting regulatory environments amid rising tariffs, school districts and transportation professionals need clarity to navigate the uncertain emissions landscape. OEMs face similar challenges. The panelists will offer as many strategic insights as they can, keeping in mind that more changes could still occur, focusing on broader industry trends and challenges.

The discussion promises to be a must-attend event for anyone involved in school transportation, offering an opportunity to hear directly from industry experts about the future of clean transportation.

Don’t miss this session and the entire STN EXPO West experience! Register now for the conference, which starts July 11 and runs through July 16 at the Peppermill Resort in Reno, Nevada.

Related: STN EXPO West Attendees Can Bet on Yourself, Bet on Your Team
Related: Technology Adoption, Utilization Panel Discussion Planned for STN EXPO West
Related: New Electrical Systems Diagnosis Technician Training Offered at STN EXPO West

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The upcoming STN EXPO West in Reno, Nevada, will feature an innovative two-hour interactive session following the Trade Show, designed to empower school transportation leaders.

Scheduled for Tuesday, July 15, the “Bet on Yourself, Bet on Your Team” panel will provide a unique opportunity for professionals to explore leadership development through dynamic roundtable discussions. The facilitators are three of the industry’s foremost leaders: Nicole Portee, associate superintendent for Charlotte Mecklenburg Schools in North Carolina; Teresa Fleming, chief operating officer and executive director of transportation for Philadelphia School District in Pennsylvania; and Quanika Dukes-Spruill, executive director of transportation for Newark Board of Education in New Jersey.

Portee and Fleming are also former STN Transportation Director of the Year award winners.

The session will be divided into two distinct segments. The first hour focuses on personal leadership growth, challenging participants to examine their individual leadership styles, career trajectories and professional networking strategies. The second hour shifts to team development, exploring succession planning, team building, and creating effective organizational structures.

Portee, Fleming and Dukes-Spruill will facilitate interactive activities, including metaphor-based discussions and fill-in-the-blank leadership tools. Attendees can expect a highly engaging experience that goes beyond traditional conference presentations, with opportunities for real-time dialogue and collaborative learning.

Participants will have the additional bonus of professional headshot photography, allowing them to capture their leadership moment while gaining valuable insights into personal and professional growth strategies.

The session represents a departure from standard conference breakouts following the Trade Show, promising a more interactive and meaningful professional development experience for school transportation professionals.

Register today for STN EXPO West, which runs July 11-16 at the Peppermill Resort.

Related: Technology Adoption, Utilization Panel Discussion Planned for STN EXPO West
Related: New Electrical Systems Diagnosis Technician Training Offered at STN EXPO West
Related: WATCH: Fire Expert to Lead School Bus Evacuation Training at STN EXPO West
Related: STN EXPO West to Feature ‘Routing 101’ Seminar

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A new requirement for selling electric school buses in New York has school bus dealers there worried about vehicle availability and even higher prices one year before a mandate goes into effect requiring all purchases be zero emissions.

The $254-billion budget for the 2025-2026 fiscal year signed into law May 9 includes a much-needed extension to 2029 for school districts demonstrating their hardships with implementing ESBs to begin purchasing only electric school buses. But provision Article 11-C, while good in theory for its intent to provide better range estimates, is short on detail that the dealers association said could lead to unintended consequences.

The three paragraphs call for independent third-party, real-world ESB range testing to be performed starting Jan. 1, 2026, before the zero-emissions vehicles could be sold to in-state school districts and bus companies. Data must be obtained over 10,000 miles operated in extreme weather conditions and over different terrains to gauge battery degradation and resulting range. The law also wants the testing to account for parking  ESBs outside versus inside. It does not specify how the types of chargers used could affect the battery lifecycle.

The New York School Bus Distributors Association (NYSBDA) opposes the provision.

“New York’s school bus dealers are transparent with their customers about the impact extreme weather conditions, terrain, driver operation, and many other factors have on the range of all-electric school buses,” said Peter Tunny, the organization’s executive director. “School districts rely on school bus dealers to partner with them to ensure more than 2.3 million children safely get to school and back home each day and part of that responsibility is to provide the most accurate data available regarding the capabilities of electric school buses.”

The New York State Energy Research and Development Authority (NYSERDA), which oversees the state’s zero emission school bus initiative, told School Transportation News last month it is aware such testing exists, available from unnamed firms or testing facilities nationwide. Aside from specific testing centers or procedures, the question that remains to be answered is how, especially with just over six months before the law goes into effect.

One student transporter familiar with the legislative negotiations told STN legislators may have added the range testing requirement to counterbalance the additional year extension granted to school districts.

“If you want that, you are going to have to do this,” the source added.

The intent of the range estimates is to bridge the gap between best-case-scenario figures marketed by OEMs and what student transporters are reporting from their operations. The theory is good, added NYSBDA’s Tunny, but school bus dealers are unaware of any such procedures or facilities to perform such tests.

More questions center on a $1,000 fine, ostensibly on school bus dealers, if the real-world estimates are not provided. No mention is made of how this money will be collected or what it would be used for, such as existing funds for school districts to electrify their fleets. The New York State Attorney General’s office oversees the penalties for violations. A spokesperson had not responded to a request for comment at this writing.

There was also no clarity on if the fine would be tantamount to purchasing a carbon credit. Would it be cheaper for a dealer or OEM to take the $1,000 fine and then proceed with the sale? Would that even be allowed? A source familiar with the legislation but who asked to remain anonymous noted the fine would be “a drop in the bucket” for a $450,000 electric school bus.

NYSBDA is seeking clarification.

“With little information regarding entities which provide independent rate estimates for electric school buses, it is impossible to know if it will make more sense to pay for the testing or the $1,000 fine,” said Tunny, a retired director of transportation for South Colonie Central Schools near Albany. “Unfortunately, at the end of the day, any increasing costs by the state will ultimately be passed on to the school district. It might make more sense with the state to conduct the independent testing by working with New York school transportation stakeholders, and utilizing a state entity, like [NYSERDA] in conjunction with the state education department.

He added that NYSBDA continues to analyze the language of the budget to determine if it would be feasible for OEMs to provide the testing or ship the buses from the factory to a testing site.

“The law should be repealed immediately so the school transportation stakeholders can sit down with Gov. [Kathy] Hochul and the legislature to help craft a law that will actually accomplish their goals without creating another obstacle to selling electric school buses in New York State,” he said.

School bus OEMs are also finally attuned to the matter, albeit they had no answers to the issue yet, either. A Blue Bird spokesman told STN the OEM and its dealers are “monitoring related developments and evaluating appropriate steps.” Meanwhile, a representative of Thomas Built Buses said its dealers were meeting with their lobbyists. At this report, no dealers had asked their OEM partners that more accurate range testing be performed before the school buses ship from the factories.

Related: New York Gov. Hochul Open to Extending Electric School Bus Mandate
Related: Funding, Data and Resiliency Needed for Electric School Bus Success
Related: Update: Future of Electric School Bus Funding Remains Unknown, Warns Expert

There are options for collecting the required data, but they could take time. One scenario could utilize telematics data from ESBs and create statistical models for different road conditions, weather and geography through in-use operations. The EV Watts program provides reliable estimates for over 950 electric passenger vehicles based on kilowatt-hours consumed. It is one the largest public datasets available. A source familiar with the program told STN that a school bus version EV Watts had been planned but its funding was cut.

Still, there are far fewer electric school buses in operation to run similar models. And aside from running models in all different temperatures and road conditions, additional challenges arise in more technology and operational variances such as battery capacity and programming, the impact of different wheelbases and tires on fuel economy, and the effect of using electrical heating compared to fuel-fired heaters, to name a few.

The National Renewable Energy Laboratory works with a half-dozen school districts nationwide to provide data for its FleetREDI analyzer. But none of the school districts operate in New York, though NREL is actively looking to recruit additional electric bus fleets, a representative told a panel audience at the ACT Expo in April.

Other nonprofit clean energy consultants could potentially perform or facilitate testing. But first, NYSERDA would need to provide guidance.

“Even so, the timeline could be hard to meet,” another EV consultant added.

The post State Budget Calls for Real-world Range Testing for Electric School Bus Sales appeared first on School Transportation News.

I am both a big user of technology and have yet to scratch the surface of its power. I, like many of my Generation X and older peers, am enthralled on one hand by technology and a bit scared on the other. My counterparts and I grew up in a different era. I didn’t see my first computer up close until my senior year of high school. It wasn’t until mid-way through college I actually used one.

Today, I couldn’t live without my computers, plural. My latest technological foray is into AI, or more aptly AI-enhanced software. It’s amazing how generative AI tools like ChatGPT and Microsoft Copilot help me work smarter and not harder, at least not as long. I highly recommend using the growing list of AI-enhanced programs for improved and faster organization, research, data analytics and communication purposes.

But I am cautiously optimistic, especially as society awaits true machine learning, which is coming fast. It will be amazing the efficiencies AI unlocks. It already is. But with that power comes great responsibility, the very reason many in Silicon Valley warn of its misuse.

More commonly than androids taking over Earth (at least so far), there’s a tendency to over-rely on AI, or any technology for that matter. It’s hard not to be awe-struck. We already see some incredible efficiency and safety enhancements from AI at the school bus Danger Zone, which we read about in this month’s magazine, combined with the more mundane, yet highly effective and common-sense advances like extended stop arms, crossing gates, and more brightly illuminated school buses and signage. But AI is learning, as we also learn this month about video, and it requires humans to ensure accuracy.

Let’s also consider parent-facing apps. While not AI yet, student transporters push notifications on the real-time location of school buses and their expected arrival times. One of the benefits student transporters have discovered with apps is the reduction in the number of phone calls they must answer from angry parents asking, “Where’s my kid’s school bus?” But these apps are not always 100 percent correct.

True, we all must learn to use AI to remain relevant in the professional world. Much to my chagrin, a recent Pew Research survey found that journalists along with cashiers and factory professions are the professions most likely to vanish in the next 20 years because of AI. Teachers, and student transporters who are every bit educators, are thought to be more protected in the job market.

But in embracing these solutions, I challenge that we all must resist the temptation to allow technology to completely do our jobs for us. We don’t want school buses driving themselves, and we also don’t want to lose open communication with our co-workers or the students and parents the industry serves.

I was reminded recently about the importance of communication while reading a story about parents in Canada, who were up in arms when a school bus driver drove off with their children rather than letting them off at their stop. Regardless of the bus driver’s reasoning, what struck me was the inability or rather refusal of the school district to talk to the parents, acknowledge their anger and share why the incident occurred in the first place.

You can have all the technology imaginable, but without communication the social contract between educators and parents becomes irreparably broken. Personally, I can’t wait to bypass the AI agent and get to a live person when calling customer service. There is a certain security in talking to a real person on the other end of the line. But even those lines are now blurred, as it took me several minutes on a recent call to realize the “person” I was having a conversation with wasn’t real but AI.

It’s mind blowing the breakneck speed of technology adoption in society and student transportation. Student transporters need to harness the power of AI and technology to do their jobs better, more efficiently and safer. But they also cannot lose sight of the human aspect because that is what the industry is built upon: Transporting safely and efficiently little human beings from home to school and home again. Those little humans have bigger human parents who love them dearly and want what’s best for them. And that necessitates real dialogue, no matter how painful that conversations can be, from the adults charged with their children’s well-being every school day.

Editor’s Note: As reprinted in the May 2025 issue of School Transportation News.

Related: New Technology Provides Data to School Bus Routing
Related: 5 Ways Large Districts Can Improve Transportation Operations with Technology
Related: Do you utilize ChatGPT or other AI tools to increase personal efficiency during the workday?
Related: Roundup: Bus Technology Summit at STN EXPO Charlotte 2025

The post Avoiding Blurred Lines of Reality appeared first on School Transportation News.

Editor’s note: A previous version of this story inaccurately included school bus Wi-Fi as being stripped from E-Rate. 

Sen. Ted Cruz and fellow Republicans in Congress view Wi-Fi hotspots as an overstep of the federal E-Rate program, which was originally mandated to serve the internet needs of students at school campuses and libraries. 

The senator from Texas notched an initial victory in his attempt to prohibit the funding of individual hotspot devices that school districts send home with students who don’t have affordable or any high-speed broadband access Thursday.  Senate Joint Resolution 7 passed by a vote of 50-38 with 12 senators not casting votes. It does not include a provision prohibiting school bus Wi-Fi.

Using the Congressional Review Act, Cruz and 15 other Republican senators—including co-sponsor Senate Majority Leader John Thune of South Dakota—await the fate of a companion bill in the House, H.J. Resolution 33, to void the Federal Communication Commissions’ “Addressing the Homework Gap Through the E-Rate Program” published in the Federal Register last August.

If the House version proceeds, both chambers would need to reconcile any differences in committee before approving a final version for President Donald Trump’s signature.

A spokesperson for internet connectivity company Kajeet noted that the resolutions don’t impact school districts that have already completed required paperwork to obtain E-Rate discounts for school bus Wi-Fi equipment scheduled to be installed this summer for next school year. But Congress could revisit school bus Wi-Fi at a later date.

In 2023, then FCC Commissioner Jessica Rosenworcel’s advanced her “Learning Without Limits” initiative that included an expansion of E-Rate to provide 20- to 90-percent discounts for school bus Wi-Fi equipment purchases and installations, depending on if the location is urban or rural and the economic needs of the community. The Democrat-majority FCC board approved a declaratory ruling that October, and school bus Wi-Fi was included under E-Rate for the current school year.

But congressional Republicans led by Sen. Cruz say E-Rate funding is tantamount to “subsidizing TikTok on school buses.” He also claims USF spending is out of control and was instrumental in filing a lawsuit against FCC alleging that school bus Wi-Fi promotes student online bullying, a case that made it all the way to the U.S. Supreme Court this spring.

However, FCC mandates content filtering and adherence to the Children’s Internet Protection Act.

Kajeet issued a statement Thursday that the Senate approval of the CRA represents “a setback to efforts aimed at funding off-campus student Wi-Fi hotspots through E-Rate.” The wireless connectivity provider also urged the House to “carefully consider the compelling data demonstrating the effectiveness and safety of managed hotspots.”

Kajeet said its cloud-based Sentinel content filtering, management and analytics platform blocked billions of student attempts last year to access Tik Tok and other non-educational sites. The company added that thousands of schools and libraries have already applied for E-Rate funding next year, and a reversal of the off-campus Wi-Fi could impact more than 6 million people nationwide.

“We fully recognize the significant impact this E-Rate reversal for hotspots will have on districts’ carefully laid plans to provide essential off-campus connectivity,” said Kajeet CEO Ben Weintraub. “By honoring E-Rate pricing, we aim to provide immediate stability and empower districts to continue their indispensable programs without disruption, ensuring that no student is left behind.”

David Schuler, executive director of AASA: The School Superintendents Association, said during a Thursday press conference held outside Capitol Hill rolling back the FCC policy will have a “devastating impact” on the 15 million students and families nationwide who rely on E-Rate for internet access outside the school building. He added nearly 20,000 schools and libraries have already applied for E-Rate funding for hundreds of thousand of hotspots.

“If this resolution passes, those applications, those children will be left offline and left behind,” he said. “Our nation continues to grapple with the digital divide that disproportionately affects low income rural and historically underserved students. Now is not the time to roll back access and connectivity.”

Related: (STN Podcast E246) Internet is Foundational: Why Universal Services Fund Matters to School Buses
Related: Benefits of School Bus Wi-Fi Discussed at STN EXPO
Related: Directors Discuss Navigating Wi-Fi Purchases, E-Rate Funding at STN EXPO Indy
Related: FCC Releases Eligible Services List for E-Rate School Bus Wi-Fi Funding

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ANAHEIM, Calif. – ACT Expo, the largest advanced clean transportation convention in the world, featured how school bus contractor First Student plans to electrify 30,000 school buses by 2035 as well as enhance its technology solutions to provide even safer and more efficient rides to students across North America.

During a Tuesday general session panel with transportation executives, President and CEO John Kenning highlighted the company’s innovative electrification approach, which includes developing a proprietary charging infrastructure called First Charge that can be installed in 30 days or less.

The company has secured over $500 million in federal grants to support electrification efforts. To date, the company said its electric school buses have traveled over 4 million miles.

As previously reported by School Transportation News, First Charge is a trenchless solution designed by Chief Engineer Alex Cook and his team to allow electric school buses to go online while awaiting the construction of permanent infrastructure.

Kenning also highlighted that First Student is exploring V2G technologies, partnering with utilities like Con Edison in Brooklyn, New York, to create microgrids that can use school buses as energy storage during off-hours.

Beyond electric vehicles, First Student is leveraging advanced technologies through its “Halo” system, which integrates multiple safety technologies. The system includes parent tracking for student bus boarding and drop-off, driver monitoring for speeding and idling, collision prevention technologies that have reduced preventable collisions by 17 percent, and AI-powered routing optimization to improve efficiency.

Kenning emphasized that First Student’s ultimate goal remains ensuring student safety while driving sustainability in school transportation. A case in point, he noted that customer Syracuse City Schools in New York is adding stop-arm camera cameras across its fleet, including about 200 school buses operated by First Student.

The panel discussion also considered the role of autonomous technology in commercial transportation. Moderator Erik Neandross, president of ACT Expo producer CRT Clean Transportation Solutions, commented that school buses are not best suited for complete autonomy because student passengers will continue to need monitoring.

“I was just at a conference, which is called the Council of Great City Schools with the top 110 school districts, and [autonomous school bus] was a topic. It was almost unanimous we’re not ready for that yet,” Kenning added.

Related: WATCH: First Student at ACT Expo
Related: Districts, Contractors Discuss School Bus Electrification Journey at ACT EXPO
Related: School Bus Drivers Discuss Real-Life Experiences Driving Electric Buses

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The auction of electric school bus and truck manufacturer Lion Electric Company is moving forward after a last-ditch effort to obtain government funding from the province of Quebec fell through.

Christine Fréchette, Quebec’s minister of economy, innovation and energy, posted on X last week that the Quebec government will not reinvest in Lion after passing on a recovery plan that was submitted to save the manufacturer but on a limited scale.

“This is a difficult, but responsible decision. It’s a local company that offers an innovative product that contributes to the energy transition. The government has a responsibility to support the growth of Quebec businesses,” she posted. “We believed in Lion’s potential, but the submitted recovery plan did not justify the re-injection of significant government sums. Unfortunately, one thing is clear: Granting new funds to Lion Electric would not be a responsible decision.”

On Monday in a Quebec court, a representative of Deloitte that is overseeing the insolvency said without the additional funding all remaining Lion assets will need to be sold.

The court lifted a stay on the auction managed by Deloitte may proceed after issuing a stay in March while Lion sought the additional funding.

The company reportedly owes $244 million to secured and non-secured creditors. A Lion Electric spokesman had no comment when asked by School Transportation News.

Bloomberg News reported that an investment group created the recovery plan that would have resulted in Lion Electric only manufacturing electric school buses going forward out of its St. Jerome plant. But the province already lost $128 million U.S. in investments into Lion with the Canadian federal government losing another $30 million U.S. Ottawa had also invested in Lion.

Public Money at Risk in Lion Electric:

 

o 2021: $19 million Canadian from Investissement Québec (IQ) to purchase shares
o 2021: $37 million from a loan offered by Quebec for the battery pack plant
o 2021: $21 million from the Ottawa loan for the battery pack complex
o 2022: $15 million in a loan from the Caisse de dépôt et placement du Québec
o 2023: $98 million loaned by IQ, the Fonds de solidarité FTQ, and Fondaction CSN
o 2024: $7.5 million in a loan from the Quebec government

Source: La Presse

Power Corp. of Canada, according to Bloomberg, was the largest Lion shareholder with a 34-percent stake but has already written down its Canadian $81 million position in the company to zero.

Montreal-based online newspaper La Presse broke the news Wednesday, reporting that an  unnamed U.S. investment firm expressed serious interest in purchasing the Lion assets, but the Quebec proposal had been the most promising.

La Presse also reported that Lion will likely be sold off in parts, which would mean the end of the company. It laid off all its employees, including those in the U.S., and ceased operations except for a select few senior executives working out of Quebec to try and salvage the company. Deloitte is overseeing the the company’s insolvency proceedings and an auction of its assets.

There are about 2,000 Lion Electric school buses at school districts and school bus companies across North America that will need maintenance and customer service going forward.

This is a developing story.

Related: Lion Electric Customers Have Options Despite Insurmountable Debit Forcing the Manufacturer to Auction
Related: Update: Lion Electric Defaults on Credit Repayment, Says It is Avoiding Bankruptcy
Related: Brunet Resigns as Lion Electric President Amid Company Battle to Stay Solvent

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I Squared Capital has reached an agreement to purchase all National Express School divisions and assets from the UK’s Mobico Group for $608 million U.S., including over 14,000 school buses operated by Durham School Services, Petermann and Stock Transportation.

The deal was announced Friday but had been expected by industry insiders for nearly 18 months. I Squared said it expects to finalize the acquisition of the Durham, Petermann Transportation and Stock brands by the end of its third quarter, or Sept. 30.

“We expect to continue business as usual under our current operating brands,” a National Express spokesperson told School Transportation News, adding the transition should be seamless for school district customers. “We will continue to deliver the high-quality, safe and reliable service that we’ve provided for more than 100 years.”

Mobico Group, formerly known as National Express Group and based in Birmingham, England, had been looking to sell its North American school bus division to reduce debt. At the same time, I Squared Capital, a global infrastructure investment company, was seeking entrance into the school bus industry and announced its intent to do so in October 2023, “to address the long-term challenges which the pandemic created for school bus.”

I Squared noted that National Express has made “significant operational improvements, primarily improving driver retention and recruitment, route reinstatement, and improved contract pricing.

“The business has also improved fleet allocation which has led to better asset utilization, cash flow and customer satisfaction. All of these culminated in school bus delivering a net positive route outcome for the current school year bid season, the first in over a decade,” the company stated in a transaction summary. “However, whilst school bus has demonstrated its recovery from the pandemic’s effects, it continues to require significant maintenance and growth capital investment and has experienced persistent market challenges such as driver wage inflation and, more recently, potential fleet cost inflation from new tariffs.”

Tim Wertner is expected to continue serving as CEO of National Express. He said the school bus contractor has focused on recovering lost routes, securing new contracts, recruiting and retaining drivers, and delivering price rises above inflation since he joined the company in 2023.

“This transfer of ownership will allow us to stand on a much stronger financial foundation for a wider spectrum of new opportunities and growth to benefit our stakeholders, valued partners and prospects, as well as reinforce our position as a transportation leader and flourish to even greater heights,” he said in a statement Friday. “With I Squared Capital’s strong reputation and support of our company, we firmly believe they will be an outstanding steward for us, and we look forward to furthering our footprint in the student transportation industry together.”

I Squared manages over $40 billion in assets that build and scale infrastructure businesses that deliver critical services to millions of people worldwide. The company’s portfolio includes over 90 companies operating in more than 70 countries and spanning sectors such as energy, utilities, digital infrastructure, transport, environmental and social infrastructure.

“School transportation is more than just a daily commute. It’s a vital link to education, which underpins a functioning society regardless of the economic cycle,” commented Gautam Bhandari, the global chief investment officer and managing partner at I Squared. “As infrastructure specialists, I Squared has specific expertise in providing vital public services, including public transport. Our investment will provide the capital needed to upgrade equipment and maintain safe, efficient transportation for children using this essential service so parents can [be] rest assured each time their family member travels.”

Mobico had operated Durham in the U.S. since the former National Express Group purchased the school bus contractor in August 1999, a year after acquiring Crabtree-Harmon that mostly operated in the Midwest. The company followed in 2000 with the purchase of School Services & Leasing, which at the time was the second-largest school bus contractor in the U.S. Two years later, it acquired Stock Transportation in Canada and in 2018 purchased Petermann in the U.S.

Related: Contractor Helps School Bus Maintenance Operations Cut Costs, Not Corners
Related: Update: Supreme Court Reinstates Corporate Transparency Act
Related: Industry Mourns the Loss of School Transportation Leader, Contractor Van der Aa
Related: Historic Year for Minnesota School Bus Contractor Punctuated by NSTA Award
Related: National Express School Technicians Advance Skills Through Thomas Built Training for EV and Standard School Buses

The post Infrastructure Investor I Squared to Acquire National Express School Bus Contractors appeared first on School Transportation News.

The electric school bus landscape is fraught with unknowns. Not long ago, that meant range anxiety, infrastructure challenges, supply chain disruption, lengthy delays in receiving orders from the manufacturers, and not knowing when the purchase price would come down.

At least student transporters knew Uncle Sam could foot some or most of the bill for the next couple of years. Last April, the conversation in this magazine on electric school buses, or ESBs, centered on cold-weather operations. The chill in today’s air, at this writing, has been the freeze of future U.S. Environmental Protection Agency Clean School Bus Program funding.

While the industry received good news in late February that the Clean School Bus Program portal was reopened for round one and two rebates and grants, 2023 rebate funds were not available for withdrawal at at press time.

The yellow school bus and reducing harmful diesel emissions from them should be an easy sell. The program also has backing on both sides of the congressional aisle. One of the most recent calls to release the funding came via a Feb. 27 letter to EPA Administrator Lee Zeldin. The letter, signed by 18 Democratic senators and led by Sen. Edward Markey of Pennsylvania, notes the Clean School Bus Program supporting 8,500 clean school bus projects in more than 1,200 school districts through fiscal year 2024. The letter also asked when the rest of funds would be released.

Zeldin had not responded at this writing.

There was no word when the Clean School Bus Program would resume, not to mention when awards from the most recent rebate program would be announced. The EPA website still says 2024 rebate selection notifications are scheduled for next month. We will wait and see.

Congress passed the Infrastructure Investment and Jobs Act that called for $5 billion over five years. There is $2.2 billion remaining to be spent. It would seem unlikely for Congress to end the program prematurely. But budget trimming has become quite the fashion in Washington, D.C.

As of early March, the World Resource Institute’s Electric School Bus Initiative reports there were 5,123 ESBs delivered or in operation nationwide but another 8,757 committed or awarded. It’s important to note that nearly 96 percent of Clean School Bus Program funds have gone toward purchasing electric school buses, the remainder propane buses or a negligible amount of CNG.

Meanwhile, last month Zeldin announced he was halting multiple EPA regulations for further review, especially those deemed by the Trump administration to be an “electric mandate.” There is no such mandate at the federal level, per se. But one could argue that EPA’s Phase III GHG emissions regulation, among three dozen regulations under review by Zeldin’s office, essentially forces truck and bus operators to switch to zero-emissions vehicles for a lack of readily available alternatives, at least in the quantities that states and school districts need.

The electric school bus movement is too large to fail, with OEMs investing millions of dollars on R&D and school districts investing millions more of taxpayer money on vehicle purchasing and related infrastructure. Minus the Clean School Bus Program, the impetus
to continue electric programs could fall squarely on the shoulders of states based on school district demand.

The Californias and New Yorks of the world have already made up their minds that electric school buses are the path forward, and they have the deep pockets and political will to continue subsidizing programs. For most other states, especially if EPA rolls back Phase III, diesel will remain entrenched as the only choice for many.

Adding to the options available in 2027, Cummins’ gasoline engine is slated for full production that year. Last month, the company announced its new diesel engine that meets Phase III will also launch in 2027. We must wait and see if or when more propane options
become available to the marketplace.

Could this all lead to more renewable diesel? So far, RD has only made inroads to the Low Carbon Fuel Standard states of California, Oregon, Washington and New Mexico, which subsidize the premium price and drive supply to market. That path has always made a lot of sense to me, as the drop-in fuel reduces GHG, NOx and PM compared to regular diesel and meets engine warranty requirements.

Student transporters have challenging school bus purchasing and energy adoption decisions to make over the next four years. That might not seem like a long time until you realize that’s one-third of an average school bus lifecycle.

Editor’s Note: As reprinted in the April 2025 issue of School Transportation News.

Related: Update: Future of Electric School Bus Funding Remains Unknown, Warns Expert
Related: (STN Podcast E251) Making Safety Safer: Seatbelts, Technology, Training & Electric School Buses
Related: WATCH: STN EXPO Reno Live Stream – The Scalability of Electric School Buses
Related: School Bus Drivers Discuss Real-Life Experiences Driving Electric Buses

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When student transporters seek new school bus equipment, what do they look for? The options can be intricately dizzying, prompting them to turn to a resource that previously assisted with mundane email issues and computer peripherals not working.

Susan Keller, like many student transportation leaders, relies on the expertise of her school district IT department to help make the right choices, especially when it comes to implementing a new camera system. The transportation manager for Cumberland Valley
School District in Mechanicsburg, Pennsylvania, said IT played a “critical” role in upgrading to Safe Fleet camera systems and the cloud-based Commander video management system in August 2023.

“They provide all of the technical knowledge in achieving our dream of a hands-off school bus camera system,” she added. “We are now able to access video independently without inconveniencing contractors and drivers with requests to manually retrieve video.”

Cumberland Valley, she explained, uses several small and large contractors in addition to the 90 district school buses that operate three-tiers of service each day across a 103-squaree-mile service area. The school district purchases and installs the equipment into the contractors’ vehicles, a complex project in itself.

“While looking at various school bus camera models, I was in constant conversation with our IT department as to what each scenario would involve from their end,” she said. Several questions needed answers. Would the system require Wi-Fi access points on buildings? Would access points at contractor lots be prudent? Would the district choose cellular technology? If so, what would that annual cost be?

“There were many details that I would not have known to ask or look for that they were able to guide me in,” Keller shared.

In the end, IT drove the decision to utilize Wi-Fi hotspots with access spots at each school building and bus loop as well as the transportation facility. Cellular with its monthly data cost and live look-in feature was deemed too expensive and challenging to manage.

“Everybody’s always shorthanded,” she added. Keller said she can now respond to requests made from drivers during their route to download and review flagged footage at her desk. Previously, she shared, anyone including contractors could download video and
store it on their computers or upload it to Google Drive. “It was not as secure as we would have liked,” she explained.

Meanwhile, Denver Public Schools in Colorado is working closely with its IT department as well as multiple vendors on a suite of video solutions that includes AI-enhanced software.

Albert Samora, the executive director of transportation, said Denver is due for an upgrade, as the existing cameras date back to 2018. But first, he wants to ensure the current project, which was slowed by COVID-19, is a success.

The first phase, all video storage and management moving to the cloud, went as planned. Phase two, seamlessly connecting each school bus camera system to Wi-Fi and cellular for downloading, is in process.

“Our intention with this solution for our cameras was to have access anywhere in the city,” he explained. That entails school buses connecting to Wi-Fi at the transportation facility, using cellular while on route and then connecting again to Wi-Fi access points at each school building during drop-off and pick-up. That has been a challenge.

“We ran into the problem that when they would get to the schools, even though the network is the same network, because of the different IP address it would see [the attempted connection] as a threat,” he continued, adding the issue is with the school district firewall. “We’re currently working through that.”

The temporary solution is to only access videos at the transportation facilities via Wi- Fi. Progress has been slow, thanks to the COVID-19 slowdown that Samora said the district is just now emerging from. That led to the following recommendation.

“Take your advice from somebody technical. Pull technical teams together and have them make promises that are realistic,” he shared, citing the importance of working closely with the school district’s IT department to manage expectations and hold all parties accountable.

Phase three is expected to be the incorporation of live video from Samsara’s AI-enhanced driver coaching cameras, which Denver currently only uses in its white fleet vehicles, with the existing Safety Vision school bus cameras.

Currently, the district has a forward-facing camera out the front windshield that Samora said he would like replaced by the Samsara system that views the road and the driver. The four Safety System cameras would record footage of the stairwell, from the rear forward, the forward to the rear, and in the middle of the school bus.

Next, Samora said he’d like to take AI to the next level by using his camera system to predict other risk factors, such as bus aides working with students during routes. “I’m looking for a company that can provide me data on a possible [paraprofessional] striking a student,” citing a desire to avoid incidents like those that have occurred recently in neighboring school districts.

He added that he would be interested in creating personal space boundaries around students and staff, similar to a geofence, for detecting when a normal action crosses the line to something improper or downright illegal—the difference between an aide handing a child a tablet and the aide back-handing the child, or proper child safety restraint securement and inappropriate or illegal touching.

“Instead of me having to go through hundreds of hours of video, I can actually get a report that says the risk factor on this, if we said the risk factor is zero to 10, is a seven and a half. And that’s not acceptable. I’ve got to look at this, get a set of human eyes on it,” added.

Samora, who has a bachelor’s degree in computer engineering. “For me, it’s interesting. I don’t know that it’s a new idea, but I haven’t heard of the industry talking about this.”

He said he also wants to receive similar instant alerts to review video when yaw sensors detect, for example, driver acceleration and harsh braking that reaches a certain risk level. Student transportation operations rely heavily on IT, but none more so than First
Student, North America’s largest school bus contractor. Camera systems are just one piece—a vital one—of the extensive technology suite integrated across a fleet of 45,000 school buses.

However, managing the data, particularly video footage, presents the biggest challenge.
With all the data collection now possible for student transporters, video or otherwise,
that’s where IT can play an active role.

“You can get all this data from technology, but it’s what you do with it, right?” commented Melinda Hall, First Student’s operations support manager. “You need IT to pull the reports together, give you what you need, so that operations can then do something with it.”

That requires IT to be privy to conversations between transportation departments and vendors in terms of not only the technology but what school districts are looking and what parents are wanting school districts to deliver.

“Senior IT members are starting to go into the bidding proposal process and participate, because of the saturation of technology offerings,” said Brent Maher, First Student’s vice president of information technology, adding that for as large as the company is, IT can’t be a part of every deal. A school district IT department at a smaller scale likely would have similar time and workforce constraints. Maher said the most important aspect is for transportation to engage IT professionals for their expert perspectives and know-how.

“If a school district is going to invest any energy in their transportation technology management, we recommend they focus on student data,” he concluded.

Editor’s Note: As reprinted in the March 2025 issue of School Transportation News.

Related: 8 Must-Know Tips for Bus Camera System Installations
Related: Districts Share How Unified Software Solution Simplifies School Bus Operations
Related: Baltimore County to Install New School Bus Cameras Ahead of Classes
Related: Data: The Power Behind Streamlined Fleet Management

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Bills in the U.S. House and Senate seek to permanently allow states and local governments to bypass a requirement that school bus driver applicants include engine component identification when performing the pre-trip vehicle inspection skills testing necessary to obtain their commercial driver’s licenses (CDLs).

The National School Transportation Association (NSTA) successfully asked the Federal Motor Carrier Safety Administration (FMCSA) in January 2022 for a three-month waiver of the so-called “under-the-hood” inspection test used to determine a school bus driver’s familiarity with engines and related components for noting potential hazards prior to starting a school bus route.

That particular skills test is mainly designed for long-haul truckers who might need to make minor repairs on the road. That is not the case for school bus drivers. Instead, they normally call dispatch after a breakdown, and a technician with a substitute bus is sent to the scene so school bus driver and students can proceed to school sites or afternoon bus stops.

NSTA Executive Director Curt Macysyn wrote at the time that the engine compartment inspection test presents a “significant obstacle” to applicants getting in their CDL and school bus companies from quickly hiring otherwise qualified drivers to address staff shortages.

FMCSA approved a three-month waiver and followed with two more. NSTA asked for a five-year waiver, but FMCSA responded with two, two-year waivers, the most recent announced in December to run through the end of 2026. NSTA said contractor members have hired 1,200 new school bus driver applicants as a result of the waiver.

Rep. John Carter of Texas, who said he drove school buses while in law school, discussed his recent reintroduction of H.R. 2360, The Driving Forward Act, to make the exemption permanent during a dinner last month at NSTA’s “Bus-in” lobbying event in Washington, D.C. A companion bipartisan bill, S. 1284, was introduced last week by Republican Sen. John Cornyn of Texas and Democratic Sen. Tammy Baldwin of Wisconsin.

Carter’s first attempt at passing the Driving Forward Act, introduced last April, failed to make it out of the House transportation and infrastructure committee. The legislation seeks to permanently extend the exemption from the “under the hood” engine compartment portion of the pre-trip vehicle inspection skills test required for obtaining CDL. This exemption is expected to make it easier for individuals to become school bus drivers, helping to alleviate the ongoing driver shortage.

In addition to making the skills test exemption permanent, the Driving Forward Act would require participating states to submit annual reports on the number of drivers licensed under the exemption over a six-year period. This data would help demonstrate success in addressing the driver shortage, the bill notes.

During the Capitol Hill Bus-in March 26-27, NSTA said school bus company members held 153 meetings with congressional offices and secured additional support for the Driving Forward Act.

“The path to getting an under-the-hood testing exemption for school bus drivers has been a long journey, but with the introduction of the Driving Forward Act in both the House and Senate, we are poised to achieve final success,” said Macysyn in a statement.

Not a ‘Silver Bullet?’

NSTA said 13 states have adopted the under-the-hood exemption. But some of those states are either no longer utilizing the exemption or questioned if the waiver is worth the effort.

Texas last year switched to the FMCSA’s new voluntary modernized CDL skills test developed by the American Association of Motor Vehicle Administrators, which was approved in August 2022. Rather than require driver applicants determine a driver applicant’s ability to identify all under-the-hood engine components, the modernized skills test for the front of any commercial vehicle including a school bus checks fluid levels and for air leaks.

Anthony Shields, director of transportation for San Marcos Consolidated Independent School District near Austin, Texas, said the modernized skills test makes it easier for applicants to test under the hood by utilizing skills cards that don’t provide answers to the applicants but instead “jolt their brains.”

“We didn’t find value in [the under-the-hood exemption], It didn’t really make it simpler,” commented Shields, before adding, ”It’s a good start to make changes for a school-bus-only CDL.”

Another state to adopt the under-the-hood skills test waiver is New York. At a recent meeting with the state DMV, the New York Association for Pupil Transportation shared very few driver candidates were opting for the waiver.

“I know some driver candidates have taken advantage of the waiver, but I don’t believe it is catching on,” commented David Christopher, NYAPT’s executive director. “The issue: It is a temporary license at this point, and it restricts the driver to in-state driving only. We have never believed this would encourage new drivers to the business. Most people who apply to drive a bus have no idea what the pre-trip entails. Therefore, the under-the-hood requirement would not seem to deter them because they are not aware of what is even required.”

He added that school district members have relayed that if new applicants are trained correctly, the under-the-hood portion of the test is not a problem.

In the end, Christopher said NYAPT supports the waiver, but with a caveat.

“If it helps a district get bus drivers, that would be great,” he added. “We don’t think it is the silver bullet that will solve the problem.”

David Johnson, executive director of the Iowa Pupil Transportation Association, also weighed in.

“My understanding is the process the state [Department of Transportation] had to go through to get the waiver was a bit of a nightmare, almost to the point where if they knew it was going to be such a hassle they may not have done it. That’s just my opinion, but that’s how it sounds,” he explained. “I have not heard of any districts that are saying, ‘Hey, this is making it easier to get drivers.’ What I have heard is districts [are] still having the under-the-hood stuff as a part of their in-house training, as they still want them to have that knowledge and check those components. I personally do not agree with the waiver. I think drivers need to know what to be looking for under the hood.”

Related: Does Taking a Peek ‘Under the Hood’ Impact Driver Shortage?
Related: NSTA’s Macysyn Discusses “Under-the-Hood” Waiver, Clean School Bus Program
Related: Tales From Under the Hood

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