Manufacturing Electric School and Transit Buses: Creating Jobs and Economic Growth

The briefing argues that expanding the U.S. electric bus fleet would create manufacturing jobs, reduce carbon emissions by 7 million tons annually, and improve public health by replacing diesel engines. It proposes utilizing $20 billion in federal grants to replace 60,000 buses—approximately 10% of the national fleet—through existing programs like Clean Cities and the Low and No Emission Vehicle Program.

• The author proposes a federal investment of $20 billion to replace approximately 60,000 school and transit buses, which represents about 10% of the national fleet. This funding would be allocated as $12.5 billion for 50,000 electric school buses and $7.5 billion for 10,000 electric transit buses, including necessary charging infrastructure.
• Transitioning to electric buses offers significant operational cost savings. An electric transit bus can achieve 25 mpg compared to 5 mpg for a diesel hybrid, and a California Air Resources Board analysis indicates a potential lifetime saving of over $300,000 in fuel and maintenance per bus. In the school sector, the Twin Rivers school district in California reported annual savings of approximately $15,000 per electric bus over diesel alternatives.
• Replacing the U.S. fleet of school and transit buses with electric versions would reduce annual carbon dioxide emissions by roughly 7 million tons. Currently, electric buses reduce net carbon emissions by about 50% compared to diesel buses based on the national average electricity mix.
• Electric buses can enhance grid resilience through vehicle-to-grid (V2G) technology, acting as mobile electricity storage. A fleet of 60,000 buses with 150 kWh batteries would provide 9 GWh of capacity, which is nine times the stationary battery energy storage capacity installed in the U.S. in 2019.
• The transition addresses public health risks associated with diesel exhaust, which is classified as a carcinogen. Diesel pollution is noted to impair lung function and aggravate asthma, particularly in children, and may increase vulnerability to respiratory illnesses like COVID-19.
• The U.S. has an established manufacturing base for electric buses and components across several states, including Alabama, California, Georgia, Indiana, Minnesota, New York, North Carolina, and South Carolina. Key manufacturers include Blue Bird (Georgia), Thomas Built (North Carolina), BYD (California), New Flyer (Alabama, Minnesota, New York), and Proterra (California, South Carolina).
• Existing federal programs that could be scaled to support this transition include the Department of Energy's Clean Cities Program, the EPA's Clean School Buses Program (under the Diesel Emissions Reduction Act), and the Department of Transportation's Low and No Emission Vehicle Program.

APA

Lashof, D. (2020). Manufacturing Electric School and Transit Buses: Creating Jobs and Economic Growth. World Resources Institute. https://files.wri.org/s3fs-public/expert-note-electric-buses.pdf

Chicago

Lashof, Dan. Manufacturing Electric School and Transit Buses: Creating Jobs and Economic Growth. World Resources Institute, 2020. https://files.wri.org/s3fs-public/expert-note-electric-buses.pdf.

Wikipedia

{{cite report |last1=Lashof |first1=Dan |title=Manufacturing Electric School and Transit Buses: Creating Jobs and Economic Growth |publisher=World Resources Institute |date=April 2020 |url=https://files.wri.org/s3fs-public/expert-note-electric-buses.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{lashof2020manufacturing, author = {Lashof, Dan}, title = {{Manufacturing Electric School and Transit Buses: Creating Jobs and Economic Growth}}, institution = {World Resources Institute}, year = {2020}, month = apr, url = {https://files.wri.org/s3fs-public/expert-note-electric-buses.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }