How Electric Buses Are Saving Cities Money and Carbon

There are approximately 60,000 transit buses that operate on the roads of American cities. While most of them currently run on diesel, they remain one of the more sustainable modes of travel. 

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In comparison to an average domestic flight, which emits 246g of CO2 per passenger, and a petrol car, which emits 170g per passenger, an average bus emits only 97g per passenger.

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To further improve the sustainability of this public transportation mode, the U.S. Department of Transportation and the Federal Transit Administration have allocated $1.7 billion from the Bipartisan Infrastructure Law to 46 states and territories in 2022.

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This funding aims to support the acquisition of 1,700 low-emission buses, with over half of them being zero-emission models. These eco-friendly, electric buses will utilize battery electric and hydrogen fuel-cell technology.

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How are electric buses better for the environment?

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Battery electric vehicles, including buses, have lower global warming emissions than diesel and natural gas buses because they don't have tailpipe emissions. However, this electric fleet still needs to be charged using electricity. Since 80% of the electricity in the U.S. comes from fossil fuels, battery electric buses are not exactly green. Despite this, battery electric buses are better for the environment than their fossil fuel counterparts.

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According to a 2018 study by the Union of Concerned Scientists, diesel buses emit 1.5-8 times more emissions compared to battery electric buses, with the range depending on the electricity mix in the region where they are getting charged.

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In regions like upstate New York, where the electricity grid consists of approximately 30% hydropower, 30% nuclear power, and 30% natural gas, battery electric buses have around 90% lower global warming emissions than diesel buses.

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The study also found that electric buses cause 70% fewer toxic emissions in California than buses running on fossil fuels.

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As the U.S. introduces cleaner sources of power like solar and wind to the electricity mix, the difference in emissions between battery electric buses and fossil fuel buses will increase even further.

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Electric fleets have big pay offs

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The biggest hurdle for cities to transition to an electric fleet is the high initial cost. As per the Department of Energy’s 2020 report, while the cost of a new 40-foot diesel bus is $480,000, a battery electric bus costs $887,308.

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On top of that, cities would also have to invest in charging infrastructure. This would include purchasing, installing, operating, and maintaining the chargers.

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But cities can cover up a lot of those costs through grants. DOE’s report estimated that if a city invests in 4 electric buses and four charging stations with the help of a $1.5 million grant, it would recover its investments in 3.6 years and over 12 years (assumed life of buses), it would save $785,000 or around $200,000 per bus.

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Another study done in Austin, Texas estimated that electric buses could save between $73,000 and $173,000 per unit over their lifetimes as the fuel and maintenance costs are much lower than diesel buses.

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With the improvement of battery technology and charging infrastructure, as well as increased adoption of electric buses, these savings are expected to increase.