Summary: There is some historic state legislation in the pipeline this year to further advance the adoption of electric school buses and heavy duty EVs across the United States. The legislation tracker is linked here.
Companies to watch (let me know any to add)
- Blue Bird (BLBD) produces electric school buses
- Green Power (GP) produces both electric buses and medium duty trucks
- Lion Electric (LEV) produces both electric buses and medium duty trucks
- Nuvve (NVVE) produces V2G (vehicle to grid) chargers that are increasing in adoption among electric bus and truck customers
- Tritium (DCFC) produces industry leading fast chargers
- Proterra (PTRA) and Nikola (NKLA) are both in the market with electric buses, batteries, and electric trucks – but I am bearish on these players due to the recent headwinds they are facing. PTRA is having management issues and NKLA is facing a lawsuit from larger competition LEV.
- Tesla (TSLA) is also notably in the market with its big electric class 8 truck
California
- AB 579 introduced in February 2023
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Summary of proposed legislation:
- Requires all new purchases and contracts to be zero emission vehicles by 2035
- Districts may request one 5-year extension under certain conditions
- Extends allowable contract lease length for zero emission vehicles
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California also has a recent order requiring zero emission heavy duty truck sales statewide (CA is 4th largest economy in the world)
Hawaii
- SB 457 introduced in January 2023
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Summary of proposed legislation:
- Beginning from 2023, requires the state to not enter into a school bus contract for a term that extends past 2045, unless the bus is a zero emission bus.
- Beginning from 2045, requires the state to enter into a school bus contract only if the bus is a zero emission bus
Hawaii
- HB 654 / SB 970 introduced in January 2023
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Summary of proposed legislation:
- Requires the Department of Education to transition to zero emission vehicles for all student transportation by 2035
Illinois
- HB 2887 / SB 2154 introduced in February 2023
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Summary of proposed legislation:
- Requires all new school bus purchases and contracts to be electric by 2028
- Requires all school buses operating in equity investment eligible communities to be electric by 2030
- Requires all school buses operating statewide to be electric by 2035
Massachusetts
- HB 3139 / SB 2218 introduced in February 2023
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Summary of proposed legislation:
- Requires all public fleets, including school buses, to be
- 50% electric by 2025
- 75% electric by 2030
- 100% electric by 2035
- Requires all public fleets, including school buses, to be
Massachusetts
- HB 3231 / SB 2121 introduced in February 2023
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Summary of proposed legislation:
- Public fleet electrification included within broader climate bill
- Requires all public fleets, including school buses, to be
- 50% electric by 2025
- 75% electric by 2027
- 100% electric by 2030
Washington
- HB 1368 / SB 5431 introduced in January 2023
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Summary of proposed legislation:
- Requires that by 2030, 70% of new school bus purchases and contracts must be zero emission vehicles (HB 1368)
- Requires that by 2033, all new school bus purchases and contracts must be zero emission vehicles (HB 1368)
- Requires that beginning 2035, any new school bus purchases and contracts must be zero emission vehicles (SB 5431)
- Allows districts to request a one-term extension up to 5 years under certain conditions
- Establishes a zero emission school bus grant program to facilitate this transition
Disclosure: I have modest long positions in LEV, GP, NVVE, and DCFC.
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