Washington, D.C. – U.S. Senator Catherine Cortez Masto (D-Nev.) joined Senators Jeff Merkley (D-Ore.), Tina Smith (D-Minn.), Bernie Sanders (I-Vt.) Cory Booker (D-N.J.), and Kamala Harris (D-Calif.) in introducing a bill that would provide transit authorities with zero-interest loans to purchase electric buses, curbing emissions among the top source of greenhouse gas pollution in the United States and cutting fleet maintenance costs by tens of thousands of dollars.
“Nevada is a leader in clean energy. And I’m doing all I can to ensure that we continue to strengthen that leadership and support opportunities to create good-paying green jobs, improve the quality of the air we breathe, and help curb climate change,” said Senator Cortez Masto. “This legislation will empower our local transit agencies to combat carbon emissions, improve residents’ quality of life, and save money in the long term. I’ll continue working to identify innovative, clean energy solutions that help America thrive.”
BACKGROUND
The transportation sector is the number one source of greenhouse gas pollution in the U.S., and 44 percent of U.S. carbon pollution comes from oil. More than 1,000 transit districts operate buses that have traveled over two billion vehicle miles. Electrifying all of the nation’s diesel-powered transit buses could save more than two million tons of greenhouse gas emissions annually, while eliminating tons of nitrogen oxides and hundreds of pounds of diesel particulate matter containing dozens of toxic air contaminants. Transitioning to cleaner buses will drastically help cut down on carbon pollution and improve communities’ air quality. Additionally, transit authorities could save roughly $40,000 a year on fuel and maintenance.
Currently, however, switching to electric buses can be cost prohibitive. That’s why the Community Health and Clean Transit Act builds on the success of the Department of Transportation’s Low and No Emission grant program and creates an innovative financing tool to offset the upfront capital cost of electric buses, and help communities choose clean and efficient transit fleets.
The Community Health and Clean Transit Act provides zero-interest loans to qualified transit districts for the additional upfront costs of electric buses over conventional diesel buses, as well as the associated charging infrastructure, and technical assistance. The bill would authorize $15 million to cover the default risk of the loan, leveraging critical federal dollars and allowing communities to choose the best bus for their needs and communities.
The bill also encourages innovative partnerships between fleet operators and utilities to facilitate vehicle-to-grid technologies, provide energy storage, and enhance grid resiliency. And, with strong “Buy America” provisions, the bill ensures that electric buses will help create U.S. jobs.