The Town of Happy Valley-Goose Bay is one step closer to getting an electric bus following a funding announcement.

MP Yvonne Jones announced the approval of $672,000 in federal funding for the purchase of an electric bus for the community on Monday.

The province is providing another $100,000 and the town $68,000.

It’s hoped, once purchased and running, that the electric bus will help to address ongoing transportation challenges in the town.

The bus itself will cost approximately $425,000 while the needed charging infrastructure will cost $300,000. The electronic fare system and other expenses related to the startup is estimated to be $115,000.

The town will engage in public consultations to determine the level of service needed, while keeping operational costs at what it calls “an acceptable level.”