The fund is part
of the Department for Transport’s wider strategy to encourage a
radical shift to low carbon transport and improve air quality in
our cities.
Bus operators and councils will be able to bid for the money
which they can then use towards the additional up front cost of
buying low carbon buses.
As more low carbon buses are produced and sold, costs will
reduce. This will encourage bus technology and will stimulate the
market for low carbon buses, an industry in which the UK is a
world leader.
Transport Secretary Andrew Adonis said;
“CO2 emissions from buses have increased significantly over the
last 10 years. For the sake of our environment and the air quality
in our towns and cities it’s important to encourage the industry
to move towards low carbon models.
"I’m delighted that this is an industry where UK
manufacturers are leading the field. Therefore these companies and
their employees are well placed to benefit from this initiative.
“Over the next two years we expect this fund to support the
purchase of several hundred low carbon buses and, just as
importantly, help to stimulate the development of a new green
technology industry and help to safeguard up to 900 jobs in bus
manufacturing."
Low carbon buses use at least 30 per cent less fuel and emit
nearly a third less carbon than an equivalent conventional bus.
They therefore have the potential to significantly reduce the
impact of road transport on climate change. They will also meet
the most stringent air quality emission standards to help improve
air quality.
At present, low carbon buses make up just 0.2 per cent of buses
on the road today .The fund is intended to put low carbon buses
within the reach of as many operators and local authorities as
possible throughout England.
1. A Low Carbon Emission Bus (LCEB) is a bus that is able to
achieve the LCEB target for Greenhouse Gas Emissions, which is
equivalent to a 30% reduction in its Greenhouse Gas Emissions
compared to a current Euro 3 diesel bus of the same total
passenger capacity. These buses will all meet the latest air
quality standards, delivering at least Euro V EU emission standards.
2. Bus operators and local authorities will be able to bid for
funding toward the additional cost of buying a LCEB. The
Department will assess the bids against published criteria and
will award grant to the winners. This grant will help to meet the
upfront cost of the vehicles. This criteria will be published shortly.
3. The fund is also available for very low and zero emission
vehicles, such as electric vehicles, and the Department would be
interested in receiving bids which covered the demonstrations of
such buses in regular use for services.
4. The fund is not intended to pay the full cost of a low carbon
bus. The maximum funding per bus will be the difference between
the cost of the low carbon bus and the cost of its standard diesel
equivalent.
5. The Bus Service Operators Grant (BSOG) was reformed this April
so that bus operators will now only receive an increase in their
grant if they achieve fuel efficiency improvements. If they
achieve at least a six per cent improvement in their fuel
efficiency, their BSOG rate will be increased, from first of April
2010, by three per cent. From April 2009, bus operators have
received an additional payment of six pence for each kilometre
they operate with low carbon buses.
6. The Department will talk to key stakeholders before publishing
the details of the competition.