Amid Calgary’s bustling diesel-burning fleet, a lone Blue Bird electric school bus is showcasing the cost and equity benefits of electrifying transport for young students.

With the help of federal subsidies, an electric school bus (ESB) can cost 21% less than its diesel burning counterpart over a 13-year period, found [pdf] Pollution Probe, which deployed the single test vehicle to make a business case for electrifying entire school bus fleets based on up-front costs and operational energy consumption.

The environmental case is already clear: “Approximately 90% of Canada’s fleet of 50,000 school buses rely on diesel fuel, resulting in the emission of 110 tonnes of carbon dioxide each throughout their lifespan,” the organization says.

To examine the business case, Pollution Probe partnered with Mobility Futures Lab, RFS Energy, and Southland Transportation, a local bus fleet operator, to send a single Blue Bird ESB out on 81 runs across three bus routes, for a total of 4,000 kilometres. The test ran from December, 2022 to June, 2023 in Calgary, producing results that Pollution Probe says were a reflection of local conditions and Alberta’s regulatory framework.

Federal Subsidies Are Crucial

“In the Albertan context, the total cost of ownership (TCO) of an ESB over a 13-year period is 19% higher than that of a diesel school bus,” Pollution Probe found. “However, when factoring in the federal financial incentives aimed at capital costs, the TCO of an ESB is 21% lower compared to a diesel school bus.”

Federal incentives are available through the Zero Emission Transit Fund (ZETF), which offers subsidies that cover up to 50% of the costs of purchasing ESBs and charging infrastructure, as well as grid upgrades that become necessary for large ESB deployments.

These up-front costs are also offset by operational savings throughout the lifetime of an ESB, but fleet operators will find financial programs like the ZETF “crucial to overcoming the initial higher capital cost of ESBs,” Pollution Probe concludes. This is “particularly true in the initial stages of the ESB transition where financial lenders charge higher interest rates for ESBs relative to diesel school buses, due to the uncertain resale value of the vehicle in case of a fleet operator default.”

Local Conditions Make a Difference

The Calgary pilot confirmed the importance of factoring in local conditions when calculating the total cost of operating electric school buses. “ESBs’ energy usage can fluctuate, especially in winter, based on their operating conditions,” and “each province’s unique regulatory framework results in varying electricity costs and billing methods,” the report states.

Citing the “limited infrastructure cost requirements of small deployments,” Pollution Probe recommends that school boards start training staff on the technology “in advance of further cost reductions expected in the sector through the recent significant investments from the industry that will promote economies of scale in ESB manufacturing.”

The Calgary pilot revealed that the electric Blue Bird bus could travel between 73 kilometres and 213 kilometres on a single charge with the range increasing, as expected, as the battery-challenging chill of winter gave way to the warmth of spring.

Options to increase range in winter conditions include installing an auxiliary diesel heater. “In winter conditions, the use of the bus electrical heating system increases energy intensity by an average of 33%, decreasing vehicle range,” Pollution Probe reports.

Training drivers in the use of regenerative braking could improve this range—in all seasons—by reducing energy intensity “by an average of 22%.”

Equity Questions Matter

“The transition from diesel to ESBs can provide significant social equity benefits by reducing air and noise pollution, particularly in high-density or low-income neighbourhoods where students are most affected by diesel emissions,” Pollution Probe writes.

“However, the challenge lies in establishing fair prioritization strategies during the adoption phase, considering factors such as geographic and demographic considerations, electric utility infrastructure, funding disparities, job quality, and accessibility.”

Pollution Probe and its partners urge school boards that are considering electric buses to “pose equity questions at the outset” to “ensure that future demonstrations and scale-up efforts include a social equity lens.”