TX SB981

Extends the maximum contract term for school bus services from 10 years to 15 years, while maintaining the minimum term of 2 years

Adds installation of charging infrastructure for electric school buses as an eligible project for Texas emissions reduction plan grants

Allows private entities that lease school buses or provide school bus services to school districts to apply for and receive emissions reduction grants

Requires at least 75% of grant funding to be used for projects purchasing electric buses or converting diesel buses to electric buses

Expands eligibility for bus replacement grants to include buses at least 9 years old or with 200,000+ miles when replacing with electric buses, compared to the 2006-or-earlier requirement for combustion engine replacements