More than 21 million children in the U.S. rely on school buses to get to and from school each day. Shockingly, around 90% of these buses are still powered by diesel fuel, exposing students and the community to harmful diesel exhaust. This exhaust is a known carcinogen and linked to both physical health problems and cognitive impairments.
Fortunately, a transformative opportunity is emerging with the rise of electric school buses (ESBs), which produce zero tailpipe emissions and are significantly better for students and the environment. Compared to diesel or propane-powered buses, electric school buses generate less than half the greenhouse gas emissions, even when accounting for the electricity needed to charge them.
The Financial Benefits of Transitioning to Electric School Buses
There's no getting around it. The initial purchase price of an ESB is considerably higher than a conventional diesel model—approximately $400,000 versus $150,000. Nevertheless, when considering transitioning to electric buses, districts and fleet operators should look beyond the upfront cost and consider the total lifetime expenses of their fleet. The Total Operating Cost for school buses should include:
Vehicle purchase price
Purchase and operating costs of refueling infrastructure (e.g., charging stations for ESBs)
Grants or incentives that subsidize purchases
Annual fuel costs
Maintenance and repair costs
Registration fees and insurance
Revenue from energy or environmental market payments
Tangible Operating Savings:
According to the Electric School Bus Initiative, school districts operating ESBs can save more than $100,000 on fuel and maintenance over the bus's lifetime compared to a diesel bus, helping offset the higher initial cost of an ESB.
Estimated Health Savings:
A groundbreaking study by the Harvard T.H. Chan School of Public Health examines the climate and health benefits of replacing diesel school buses with electric ones. The study reveals that each electric bus replacing a diesel one could generate $84,200 in total benefits. This figure includes $40,400 in climate-related advantages, primarily from the elimination of 181 metric tons of carbon dioxide emissions, and $43,800 in health savings due to reduced air pollution and lower rates of mortality and childhood asthma.
These benefits are even more pronounced in urban areas and in fleets that include older buses, particularly those built before 2005, where the total benefits can skyrocket to $247,600 per bus. Such impressive figures highlight why electrification of school bus fleets is a critical move for public health and environmental sustainability.
Incentives Facilitating the Transition
Switching from diesel to electric school buses can be a financial challenge, especially for school districts operating on tight budgets. Fortunately, a variety of incentives and mandates are facilitating the transition.
The EPA Clean School Bus Program began in 2022. As of January 2024, the program has awarded approximately $1 84 billion to fund 5,103 clean school buses – 96% of which are electric – and related charging infrastructure at 642 school districts
The total number of electric school buses is expected to grow with future rounds of funding from the Clean School Bus Program. The EPA’s Clean Heavy Duty Vehicles Grant Program was developed to transition heavy-duty vehicles, including school buses, to zero-emission models, with approximately $700 million expected to go toward school bus replacement projects.
Within California, additional funding for public school districts is available through the California Air Resources Board. (CARB) Specific incentives include:
The Zero-Emission School Bus and Infrastructure Incentive Project (ZESBI)
2024 programs concluded on September 30. Awaiting information of 2025 programs
The Clean Truck and Bus Voucher Incentive Project (HVIP Standard)
AB 617: Community Air Protection Incentives
Lower-Emission School Bus Program (LESBP)
The Infrastructure Challenge
While the incentives and benefits of electric school buses are clear, the transition comes with challenges. A major hurdle is building the required charging infrastructure. For many school districts, purchasing the buses is easier than ensuring they have the facilities to charge and maintain them properly.
(It would be negligent of me not to mention here that, ABS can help with all your electric vehicle infrastructure needs. But do read on.)
The Role of Local Utilities
In addition to your energy contractor (again, think ABS), your utility can play a role in facilitating your transition to electric school buses. Many electric utilities offer financial incentives to encourage the adoption of electric vehicles. Incentives can include direct payments to help reduce the upfront costs of vehicles or charging infrastructure, as well as custom rate structures to help minimize electricity costs.
In Conclusion
Electrifying school bus fleets is more than just a step toward cleaner air—it’s a commitment to the health and future of the next generation. By embracing electric buses, school districts can create a safer, healthier, and more sustainable environment for students while making a positive impact on the planet.
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