T
alk about sticker shock. There’s nothing like the price of a new electric school bus (ESB) to confirm what transportation leaders across the country have come to realize: In financ-
ing school bus operations, it’s a challenging new era. That transition brings plenty of questions, from how to manage the high cost of ESBs in the first place, to what kind of operational costs might be anticipated. Whether starting slowly or going electric in a big way, districts are facing unprecedented budget considerations. In Maryland, Montgomery County Public Schools al-
ready has 86 ESBs now in operation, explained Gregory Salois, director of the department of transportation. The district will take on an additional 120 buses by the end of the year and 120 more in 2024. The EVs are obtained through a four-year, turn-key contract initiated in 2021 with Highland Electric Fleets. The company purchases the buses, installs the charging infrastructure, and pays all utility contract fees. It also realizes any future revenue. Meanwhile, Montgomery County pays on a per-bus
basis, roughly the same amount it would to purchase and operate a diesel school bus, and will operate the ESBs for 12 years, with Highland retaining all bus and charger owner- ship. “The contract was designed to be budget neutral and it allowed MCPS to agree with such a significant number of buses,” Salois said. Other than normal equipment replacements such as headlights, wipers and tires, additional ESB-specific costs have not been identified given the limited time the district has had electric vehicles. “However, we have recognized immediate savings on fuel costs and other light maintenance costs such as oil changes and broken belts,” Salois continued, adding that any equipment fail- ure is covered under warranty. Budget considerations over the long-term remain to
be addressed. “We’re in discussions to determine if we’ll renew the contract at end of the fourth year,” Salois not- ed. “For the contract to be truly budget neutral, additional buses purchased in years five, six and seven will be significantly lower. We need to determine if, as a district, we would be able to operate with a continually increased percentage of our fleet being electric.” On a smaller scale, Beaverton School District in Ore-
gon has placed four electric buses in service, with more on order. Craig Beaver, administrator for transportation, said the district is fortunate to take advantage of a fleet replacement funding program provided by the state. He speculated that with the high purchase price of ESBs, some operators elsewhere may have to rethink vehicle replacement plans. “Some school districts may have to begin to include funding for bus replacement in district bonds, which
38 School Transportation News • JUNE 2023
have been traditionally limited to construction, facility repair and replacement projects,” he noted. “Others may choose to begin to finance the purchases over time.” Expenses beyond the initial purchase will be assessed as they occur. “At this point and for the next year or two, we don’t plan to make any major adjustments to our parts and service budget,” Beaver said. “Since this is all so new, we don’t have a lot of data to base these decisions [on].” He explained that the only hard data currently avail- able in the Pacific Northwest comes from city transit companies, but their operations are different from the schools in miles driven and hours on route. Beaverton staff do expect to see a decrease in maintenance costs due lack of fluids, hoses and moving parts. “With regen- erative braking, we’re even expecting a decrease in brake and rotor maintenance,” Beaver added. On the other hand, since the vehicle interiors are iden-
tical to other buses, those costs should remain constant. Still, Beaver noted some issues have arisen, but they’ve been manageable. For example, two charging cables for Level 2 chargers had to be replaced due to connectivity issues, but both were covered under warranty from the charging manufacturer. Otherwise, the cables would have cost the district about $400 each. Some issues with the engine control module and charging system were likewise covered by manufacturer warranty. “It’s taken roughly two years, but those issues seem to
have been corrected,” Beaver noted. “Half of our buses are first generation, and we attribute many of the issues to being new technology and growing pains with the OEM.” For many districts, the transition to electric vehicles is being made gradually, often through special funding. That’s the case at Monroe County Community School Corporation in Bloomington, Indiana which has 13 elec- tric buses. “We’ve been purchasing all school buses through bond funding for the past several years,” said Adam Terwilliger, director of finance and logistics. “We will continue this pro- cess for all future bus purchases including future EV buses.” At this point, he said he doesn’t anticipate higher
incident or maintenance costs with the ESBs. Batteries are covered by warranty, and any hypothetical insur- ance claims will be covered as a claim with the district’s insurance carrier. “We will follow the same plans as we do currently with
our diesel buses,” he indicated. “In general, EV buses should have fewer ongoing maintenance costs than diesel buses.” Going forward, operational expenses will be mon-
itored closely between the district’s electric fleet and diesel fleet, he added. Federal funding has helped Dearborn Public
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