{"id":1433,"date":"2023-06-29T19:02:12","date_gmt":"2023-06-29T19:02:12","guid":{"rendered":"https:\/\/www.trccompanies.com\/insights\/the-us-billion-dollar-ev-bus-program-cant-keep-up-with-demand\/"},"modified":"2024-12-12T09:31:03","modified_gmt":"2024-12-12T09:31:03","slug":"the-us-billion-dollar-ev-bus-program-cant-keep-up-with-demand","status":"publish","type":"news-and-insights","link":"https:\/\/www.trccompanies.com\/fr\/insights\/the-us-billion-dollar-ev-bus-program-cant-keep-up-with-demand\/","title":{"rendered":"The US\u2019 Billion-dollar EV Bus Program Can\u2019t Keep up With Demand"},"content":{"rendered":"<!-- Start Block: acf\/wysiwyg -->\n\n<section class=\"wysiwyg section-padding bg-white\">\n    <div class=\"container-fluid\">\n                    <div class=\"wysiwyg__wrapper\">\n        \n        <div class=\"row\">\n                        <div class=\"col-lg-12\">\n                                                                                \n                                                <\/div>\n\n                            <div class=\"col-lg-12 js-animated-content animated-content\">\n                    <p><strong>Source:<\/strong>\u00a0Canary Media<\/p>\n<p>There\u2019s good news and bad news from the\u00a0<a href=\"https:\/\/www.transportation.gov\/briefing-room\/biden-harris-administration-announces-nearly-17-billion-help-put-better-cleaner-buses\" target=\"_blank\" rel=\"noopener\">$1.7 billion in grants<\/a>\u00a0the U.S. Department of Transportation awarded for bus decarbonization projects this week.<\/p>\n<p>For many transit agencies, federal grants like those announced Monday can supply a vital boost to their plans to switch to electric buses and slash emissions from carbon-intensive bus fleets. But the demand for all-electric buses far exceeds the amount of money Congress has appropriated for them. Meanwhile, money earmarked specifically for low-emissions fossil-fueled buses remains unavailable to transit agencies that want to go the 100 percent zero-emissions route.<\/p>\n<p>The 2021 Bipartisan Infrastructure Law, where these new grants stem from, significantly boosted federal clean-bus program funding from previous levels.<\/p>\n<p>But a much-criticized clause in the law also required at least 25 percent of the funding from the most lucrative stream of grants to go to low-emissions buses, rather than zero-emissions buses. The provision was lobbied for by a fossil gas industry group in support of compressed natural gas (CNG) buses in particular, which are less polluting than diesel-fueled buses but still produce planet-warming and smog-forming emissions.<\/p>\n<p>The Sierra Club highlighted this disconnect in its\u00a0<a href=\"https:\/\/www.sierraclub.org\/press-releases\/2023\/06\/biden-harris-administration-announces-nearly-17-billion-cleaner-buses#:~:text=NATIONWIDE%20%E2%80%93%20Today%2C%20the%20U.S.%20Department,in%20communities%20across%20the%20country\" target=\"_blank\" rel=\"noopener\">Monday press release<\/a>\u00a0praising the \u200b\u201chistoric levels of funding\u201d from the infrastructure law.<\/p>\n<p>\u201cResidents across the country can benefit from cleaner air and reduced climate pollution\u201d to come from electric buses and infrastructure receiving federal grants, said Eric Willadsen, campaign representative with the Sierra Club\u2019s Clean Transportation for All campaign. But \u200b\u201carbitrary caps on how funding can be distributed are a major barrier to maximizing community benefits from zero-emissions buses.\u201d<\/p>\n<p>This week\u2019s funding will enable the purchase of more than 1,700 U.S.-made buses across 46 states and territories. Of those, \u200b\u201cnearly half\u201d will be zero-emissions buses, according to Monday\u2019s statement, the vast majority of them battery-electric. The remainder will be \u200b\u201clow-emissions\u201d vehicles such as diesel-electric hybrids or CNG-fueled buses, prompting concern from environmental advocates who say that these buses are in low demand and also will unnecessarily lock in transportation-sector emissions.<\/p>\n                <\/div>\n                                <\/div>\n\n                    <\/div>\n            <\/div>\n<\/section>\n<!-- End Block: acf\/wysiwyg -->\n\n<!-- Start Block: acf\/innerpage-half-text-half-image -->\n\n\n<section class=\"half-and-half flex-row section-padding image-block-left bg-white text-column-one image-size-cover\">\n    <div class=\"half-and-half-image\">\n        <div class=\"half-and-half-image__wrap\">\n                                                <img decoding=\"async\" width=\"1024\" height=\"518\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/GettyImages-2005233431-1024x518.jpg\" class=\"object-fit\" alt=\"GettyImages-2005233431\" srcset=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/GettyImages-2005233431-1024x518.jpg 1024w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/GettyImages-2005233431-300x152.jpg 300w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/GettyImages-2005233431-768x389.jpg 768w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/GettyImages-2005233431-1536x777.jpg 1536w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/GettyImages-2005233431-2048x1037.jpg 2048w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/GettyImages-2005233431-1185x600.jpg 1185w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>                                    <\/div>\n    <\/div>\n    \n    <div class=\"half-and-half-text\">\n        <div class=\"half-and-half-text__wrapper js-animated-content animated-content\">\n                                        <h2>The Low-No push-pull<\/h2>\n<p>Buses and other heavy-duty vehicles are responsible for a disproportionate share of the carbon and air pollution emissions from the transportation sector, making them a key target for policymakers trying to combat climate change and improve public health, particularly in the lower-income and disadvantaged communities that suffer the worst air pollution.<\/p>\n<p>Transit buses in particular have been\u00a0<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-06-09\/buses-are-going-electric-faster-than-passenger-cars#xj4y7vzkg\" target=\"_blank\" rel=\"noopener\">electrifying faster than any<\/a>\u00a0other class of vehicle in the world, with their regular routes, slow driving speeds and centralized depots making them ideal candidates for the switch. BloombergNEF projects that half of the world\u2019s buses will be battery-powered by 2032.<\/p>\n<p>For its part, the U.S. had about 5,480 battery-electric buses as of September 2022, a 66 percent increase from 12 months prior,\u00a0<a href=\"https:\/\/calstart.org\/wp-content\/uploads\/2023\/02\/Zeroing-in-on-ZEBs-February-2023_Final.pdf\" target=\"_blank\" rel=\"noopener\">according to Calstart<\/a>, a nonprofit representing vehicle manufacturers, utilities, companies and government agencies on clean transportation policy. That\u2019s still a fraction of the roughly 60,000 transit buses operated by more than 1,000 transit agencies across the country, however.<\/p>\n<p>The new batch of grants will help close that gap. It\u2019s the second round of grants from two Federal Transit Administration programs that received $7.5 billion through 2026 \u2014 a sixfold increase from their previous funding levels \u2014 via the infrastructure law. Last year, the Department of Transportation awarded\u00a0<a href=\"https:\/\/www.transit.dot.gov\/1800buses\" target=\"_blank\" rel=\"noopener\">more than $1.6 billion in grants<\/a>\u00a0to fund the purchase of up to 1,100 zero-emissions buses and another 700 fossil-fueled buses.<\/p>\n<p>This year\u2019s 130 awards include a mix of small and large-scale projects, from sub-$1-million grants to rural transit agencies to as much as $104 million for the Washington, D.C. transit authority to buy about 100 electric buses and refurbish a depot to charge and maintain them.<\/p>\n<p>Still, the demand for grants remains far higher than the amount of federal funding available \u2014 even despite the fact that many larger transit agencies have already\u00a0<a href=\"https:\/\/www.canarymedia.com\/articles\/clean-fleets\/how-one-california-transit-agency-electrified-its-fleet-18-years-ahead-of-schedule\" target=\"_blank\" rel=\"noopener\">invested heavily<\/a>\u00a0in electric bus fleets on their own. The Federal Transit Administration received about $8.7 billion in eligible project proposals for the just-announced round of grants, the majority for zero-emissions vehicles and associated infrastructure and assistance.<\/p>\n                    <\/div>\n    <\/div>\n<\/section>\n<!-- End Block: acf\/innerpage-half-text-half-image -->\n\n<!-- Start Block: acf\/wysiwyg -->\n\n<section class=\"wysiwyg section-padding bg-white-fog\">\n    <div class=\"container-fluid\">\n                    <div class=\"wysiwyg__wrapper\">\n        \n        <div class=\"row\">\n                        <div class=\"col-lg-12\">\n                                                                                \n                                                <\/div>\n\n                            <div class=\"col-lg-12 js-animated-content animated-content\">\n                    <p>But a provision in the 2021 infrastructure bill has limited the government\u2019s flexibility to match the demand for electric buses. U.S. Senator Pat Toomey, a Republican from the fossil-gas-producing state of Pennsylvania who retired last year,\u00a0<a href=\"https:\/\/www.washingtonpost.com\/transportation\/2021\/08\/17\/infrastructure-polluting-buses-mandate\/\" target=\"_blank\" rel=\"noopener\">inserted a clause in the law<\/a>\u00a0that requires at least 25 percent of the $5.6 billion over five years appropriated for the\u00a0<a href=\"https:\/\/www.transit.dot.gov\/lowno\" target=\"_blank\" rel=\"noopener\">Low or No Emission (Low-No) Grant Program<\/a>\u00a0to go to projects \u200b\u201cother than zero-emission vehicles and related facilities.\u201d<\/p>\n<p>That carve-out hasn\u2019t matched up with what transit agencies are asking for, according to\u00a0<a href=\"https:\/\/t4america.org\/2023\/05\/16\/is-the-federal-government-squandering-clean-transit-funds\/\" target=\"_blank\" rel=\"noopener\">a May report<\/a>\u00a0from the nonprofit group Transportation for America. Its analysis of last year\u2019s awards from the Low-No program found that the amount of funding being sought for zero-emissions bus projects well exceeded the amount of funding available, with only 33 percent of applications receiving grants.<\/p>\n<p>The funding available for low-emissions fossil-fueled projects, by contrast, exceeded the amount sought by applicants, leaving a small amount unspent, said Chris Rall, outreach director for T4A. While his group hasn\u2019t analyzed the latest round of funding yet, \u200b\u201cwe hypothesize there will be more applications for low-emissions projects because there are incentives for agencies to do that,\u201d he said.<\/p>\n<blockquote>\n<p>\u201cA lot of them are still going to make that choice to get their fleets a little bit cleaner and to replace buses,\u201d potentially locking them into a decade or more of using fossil fuels instead of switching to zero emissions, he said. \u200b\u201cIt\u2019s a major challenge for transit agencies to get the fueling infrastructure they need to transition their fleets.\u201d<\/p>\n<\/blockquote>\n<p>Public funding does help transit agencies be able to afford to replace older, more polluting buses with less-polluting fossil-fueled options, said Nate Springer, vice president of market development for transportation-consulting firm TRC (formerly GNA). Compressed natural gas buses have been\u00a0<a href=\"https:\/\/www.nrel.gov\/docs\/fy00osti\/28377.pdf\" target=\"_blank\" rel=\"noopener\">on the roads for decades<\/a>, he noted. The technology is \u200b\u201cmature, it\u2019s available, it\u2019s proven by transit agencies, and it cuts air pollutants dramatically\u201d compared to diesel buses.<\/p>\n<p>On the other hand,\u00a0<a href=\"https:\/\/www.canarymedia.com\/articles\/clean-fleets\/white-house-and-congressional-democrats-plan-big-boost-in-e-bus-spending\" target=\"_blank\" rel=\"noopener\">government funding is also meant to \u200b\u201chelp seed a new market,\u201d<\/a>\u00a0Springer said. \u200b\u201cIt allows fleets and transit agencies to take some risks,\u201d working around the constraints of tight capital and operating budgets to deploy newer technologies.<\/p>\n<p><img decoding=\"async\" class=\"alignright wp-image-8290 size-medium\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/GettyImages-1305507432-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/GettyImages-1305507432-300x200.jpg 300w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/GettyImages-1305507432-1024x683.jpg 1024w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/GettyImages-1305507432-768x512.jpg 768w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/GettyImages-1305507432-1536x1024.jpg 1536w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/GettyImages-1305507432-2048x1365.jpg 2048w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/GettyImages-1305507432-900x600.jpg 900w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/GettyImages-1305507432-750x500.jpg 750w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/GettyImages-1305507432-700x467.jpg 700w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>Battery-electric and hydrogen-fuel-cell-powered buses still cost about 150 to 200 percent more than diesel-fueled buses, he said. They also require extensive charging or fueling infrastructure that\u2019s now hard to come by, as well as a workforce that\u2019s trained to operate and maintain them, Springer added. \u200b\u201cThe next role of funding is, how do you incentivize early adopters, which do have budget limits, but also aggressive clean air and climate goals,\u201d to overcome those constraints, he said.<\/p>\n<p>The right combination of upfront and long-term incentives can bring electric buses to cost parity with fossil-fueled buses in terms of their total cost of ownership over their useful lifetime, Springer noted. \u200b\u201cYou should be able to save on electricity with managed charging, so your fueling costs go down. You should be able to save on maintenance once your teams become effective at it.\u201d<\/p>\n<p><a class=\"btn btn-primary\" href=\"https:\/\/www.canarymedia.com\/articles\/public-transit\/the-us-billion-dollar-ev-bus-program-cant-keep-up-with-demand\" target=\"_blank\" rel=\"noopener\">Continue reading on Canary Media<\/a><\/p>\n                <\/div>\n                                <\/div>\n\n                    <\/div>\n            <\/div>\n<\/section>\n<!-- End Block: acf\/wysiwyg -->\n\n<!-- Start Block: acf\/innerpage-promotion-blocks -->\n\n<section class=\"cta-right-image-text\">\n    <div class=\"cta-right-image-text__wrap\">\n        <div class=\"cta-right-image-text__text\">\n            <div class=\"cta-right-image-text__text__wrap js-animated-content animated-content\">\n                <h2>Start the Conversation<\/h2>\n<p>Let\u2019s connect to discuss how TRC can help you drive a more sustainable future.<\/p>\n<p><a class=\"btn btn-primary\" 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Media.<\/p>\n","protected":false},"featured_media":8296,"template":"","tags":[158],"news-and-insights-category":[363],"services-category":[1006],"custom_category":[],"class_list":["post-1433","news-and-insights","type-news-and-insights","status-publish","has-post-thumbnail","hentry","tag-clean-transportation","news-and-insights-category-insights","services-category-clean-transportation-consulting"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The US\u2019 Billion-dollar EV Bus Program Can\u2019t Keep up With Demand<\/title>\n<meta name=\"description\" content=\"TRC&#039;s Nate Springer comments on the high demand for clean transit bus grants in an article from leading sustainability publication Canary Media.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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