Now is an excellent time for K-12 “yellow” school buses, college campus transportation and public transit systems to transition to zero-emission electric buses instead of traditional gas or diesel-powered models.
Key factors driving this shift include substantial federal and state financial incentives that cover a significant portion of the price, the availability of U.S. manufactured electric buses and advancements in engineering and battery technology that have dramatically improved ranges and lowered initial investment costs.
Decades ago, the reputation of school buses as gross polluters was well deserved. For many, yellow school buses evoke memories of black smoke belching from the tailpipe, backfires and noxious fumes wafting into the air – not to mention the main cabin. Those older diesel engines emitted up to 20 times more air pollution, such as hazardous air toxins and asthma-inducing particulate matter, compared to modern engines with advanced pollution controls.
While much cleaner today, diesel buses still emit substantial amounts of air pollution that impact our health, natural resources and climate, including nitrogen oxides and carbon dioxide. Diesel exhaust also contains fine particles that can penetrate deep into the lungs, causing respiratory and cardiovascular issues.
Compressed Natural Gas buses, considered a cleaner alternative, produce around 22% less greenhouse gas pollution per gallon equivalent compared to diesel buses. However, this advantage is offset by higher fuel consumption per mile and increased methane emissions, which is alarming as methane is more than 28 times as potent as carbon dioxide at trapping heat in the atmosphere.
Electric buses offer a quiet, clean transportation experience for both students and riders. With zero tailpipe emissions, they significantly reduce air pollution and operate with minimal sound, reducing noise pollution. Depending on the region’s electricity mix, electric buses can produce 1.4 to 7.7 times fewer emissions compared to diesel buses.
Recent advancements in battery technology have increased ranges to 100-150 miles per charge, making buses a prime candidate for electrification.
Electric buses offer a quiet, clean transportation experience for both students and riders.Envirotech Vehicles
K-12 school routes in urban and suburban areas typically span 5–15 miles per trip, while routes in some rural districts can range from 50–75 miles daily. Similarly, university transportation systems, including shuttle services connecting main campuses and health science campuses, are ideal for such applications. Private and public transportation providers across the U.S. and Canada also stand to benefit significantly.
The financial rationale for electric buses is also extremely compelling, as both Federal and State authorities provide substantial incentives, including EPA grants, rebates and voucher programs, to offset the initial investment. In many cases, application procedures have been simplified and disbursement of funds expedited for the replacement of existing buses.
One of the most notable subsidy programs is the Clean School Bus Program, created by the U.S. Environmental Protection Agency (EPA) to lower school bus emissions, enhancing air quality and protecting children’s health.
Funded by the Bipartisan Infrastructure Law, the program allocates $5 billion over five years (FY 2022-2026) to replace existing school buses with zero-emission and low-emission models. Each fiscal year, $500 million is available for zero-emission buses and an additional $500 million is available for both zero-emission and other low-emission buses.
In June 2024, Osceola, Arkansas based Envirotech Vehicles announced it had sold a fleet of its buses in Arkansas and Texas in conjunction with an EPA award announced on January 25, 2024. The Envirotech school bus, nicknamed the "Bumble Bee," is available with standard or extended range battery pack options that provide a range between 150 and 200 miles on a fully charged battery.
U.S. based manufacturers like Envirotech Vehicles, Inc. (NASDAQ:EVTV) have moved beyond concepts and early prototypes to full production. Envirotech is a provider of new zero-emission, purpose-built electric vehicles. The company serves commercial and last-mile delivery fleets, school districts, public and private transportation service companies, colleges and universities and meets the increasing demand for heavy-duty electric vehicles.
"We are excited to introduce Envirotech’s electric school bus, setting a new standard for eco-friendly transportation in the United States. This initiative represents a significant step toward sustainability and environmental stewardship in bus transportation," said Phillip Oldridge, Chief Executive Officer of Envirotech.
Like the most popular consumer electric vehicles, the “Bumble Bee EcoRange” utilizes a combination of aluminum for the body and high-strength steel in its construction. Aluminum reduces vehicle weight by approximately 20%, which means less energy is required to move the bus and increases vehicle range. A lighter vehicle also enhances acceleration, braking and handling.
The aluminum body is 95% recyclable, much like a large soda can. Aluminum can be repeatedly melted and reshaped without any loss of its core characteristics or material quality. Recycling aluminum helps prevent additional greenhouse gas emissions in the future.
The electric school bus market is growing, with thousands of units deployed or on order globally.Envirotech Vehicles
As part of the EPA Clean School Bus Program, awards were issued for twenty-five Envirotech electric school buses in 2024 to school districts in Arkansas and Texas.
The Texas Kopperl Independent School District (Kopperl ISD), which is about 90 minutes southwest of Dallas, was awarded three of the Envirotech Bumble Bee buses to transport students along regular routes.
“It was an opportunity to upgrade the bus fleet,” said Superintendent Katrina Adcock of Kopperl Texas Independent School District, adding that Kopperl ISD was able to save substantial money as a recipient of the award.
“The total [cost] for the district for three Envirotech buses is less than what we would have had to pay for one gas powered bus,” said Adcock. “The cost savings is a big driver.”
Interested school districts are encouraged to act quickly. Applications for the 2024 Clean School Bus Rebate Program are open through January 9, 2025, with up to $965 million available for new zero-emission and clean school buses.
According to Adcock, she has already been asked by a neighboring school district superintendent what they need to do to get Envirotech electric buses.
“There is nothing like this in our area,” she said. “We are excited.”
Other noteworthy programs include California's Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), which offers significant rebates. Maryland’s efforts in Montgomery County highlight a major investment in electric buses through a public-private partnership. Additionally, countries like Canada provide a range of subsidies and incentives to support similar initiatives.
According to Oldridge, the electric school bus market is growing, with thousands of units deployed or on order globally. Additionally, Envirotech is currently in discussions with transportation agencies throughout the country and in Canada to begin to deliver buses to metropolitan transportation systems.
Envirotech’s CEO Phil Oldridge concluded: “The time is now. Electric school buses are available and federal and state money are waiting for applicants to apply for the funds.”
