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New report outlines how utility companies can help pay for electric school buses

Private investment in electric school buses shows promise as electric bus technology improves
For Immediate Release

Oakland -- The vast majority of school buses in the United States run on diesel, a climate-polluting fossil fuel that releases toxic fumes linked to life-threatening health problems such as asthma, bronchitis and cancer. Emitting over 5.3 million tons of greenhouse gases per year, not only are diesel buses bad for our children’s health, they’re also bad for the climate. However, there is a cleaner, safer and more long-term budget-friendly alternative: zero-emission electric school buses.  To protect our children’s health and environment, U.S. PIRG Education Fund and Environment America Research & Policy Center has released a new report to identify new, cutting-edge ways that utility companies can assist school districts in paying for zero-emission buses, and how schools can reap the long-term benefits. 

“Electric school buses are ready to roll, but many schools still aren’t sure how to come up with upfront costs to pay for them” said U.S. PIRG Transportation Associate Ethan Evans. “While electric buses can save and even earn schools money over the lifespan of the bus, the initial price tag often presents a hurdle for cash-strapped districts. Utility investment would help ease the transition and accelerate us toward a zero-emission electric future.”

Moreover, electric utilities have a lot to gain from the large-scale adoption of electric school buses. The report finds that utilities can support electric buses by helping to finance the upfront purchasing costs of electric buses, investing in depot and en-route bus charging infrastructure and introducing smart charging to maximize renewable energy use. 

The report also includes examples of several utility companies that have already launched programs to help school districts adopt electric buses, including Dominion Energy in Virginia and Portland General Electric in Oregon. By building infrastructure and providing discounted charging, these programs are helping speed the adoption of electric buses, and position utility companies to reap the benefits of widespread electrification. These benefits include grid expansion and stabilization, surplus energy storage and increased energy demand. 

On top of health and environmental benefits, electric buses are a financially advantageous choice for school districts. The report shows that with utility investment and advancements in electric vehicle technology, schools can save over $8,000 per year. The savings add up: over the lifespan of an electric school bus battery, schools can save nearly $130,000 per bus. 

  “Our kids deserve a world without diesel emissions. The transition to a zero-emission transportation sector and a widespread clean energy economy requires coordination between school districts, lawmakers and utility companies,” said Laura Deehan, State Director at Environment California. “Only by working together can we tackle the existential threat of climate change and accelerate the process towards a zero-emission future.”

Finally, the report gives recommendations for schools, lawmakers and utility companies. Some of these recommendations include: 

  • School districts should commit to transitioning to 100 percent all-electric buses by 2030, with a plan to phase out the purchase of new diesel buses immediately. They can also engage with local utilities to help accelerate the adoption of electric buses.

  • Lawmakers should work with utilities and regulators to develop effective electric bus investment programs that protect ratepayers and consumers. They can also develop grant programs to assist school districts with the additional upfront costs of purchasing electric buses.

  • Utility companies should invest in electric school buses. They should also reduce emissions, increase grid capacity and earn money by assisting school districts in financing electric school buses and investing in the charging infrastructure necessary for large-scale adoption.

 “Getting to school shouldn’t include a daily dose of toxic pollution,” Claudia Deeg, CALPIRG Public Health Associate  said. “With school districts, lawmakers and utilities all working together, we can make the switch to all-electric school buses and give our kids a healthier ride to school.”

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