The funding breaks down as £11 million in 2018-19, £19.5 million in 2019-20, and £17.5 million in 2020-2021.
Any English or Welsh local authority can apply for funding. DfT will contribute up to 50% of the cost premium of the low-emissions buses and conventional models, and up to 75% of infrastructure costs such as electric bus charging equipment. Buses with higher greenhouse gas savings and reduced air quality impacts would be favoured. The highest category, ‘ultra low emissions bus’ (ULEB) must produce 30% less greenhouse gas emissions than a Euro VI bus, while meeting Euro VI rules. LowCVP has developed a special ULEB test cycle.
Transport minister Nusrat Ghani said: “We are doing more than ever before to reduce greenhouse gas pollution across all modes of transport and we are committed to ensuring nearly all cars and vans are emissions-free at their tailpipes by 2050. In order to achieve this ambitious target, the transport sector is going to have to change dramatically over the next couple of decades – and buses are no exception.We are confident this scheme will encourage councils and operators to invest in these ultra-low emission vehicles - speeding up the full transition to a low emission bus fleet in England and Wales.
The new scheme follows the success of the previous Low Emission Bus Scheme. This led to 13 organisations receiving more than £30 million between them – enough to put more than 300 new low-emission buses on the road by 2019.
The current funding comes as part of a wider £100 million scheme announced in November 2016 to support low-emission buses.
The UK is also planning to host a zero emission vehicle summit in autumn 2018. Bids for funding are due 30 June.