Federal Funding for Compressed Natural Gas, Hydrogen, and Clean Diesel Buses

Many municipalities who provide public transit have taken advantage of previous programs such as the Green Transit Incentives Program (GreenTRIP) and the Public Transit infrastructure Fund Program (PTIF) in past years to replace diesel-based transit fleets with greener options. Significant investments were also made to construct, and service specialized fueling stations. 

Transitioning to zero emission transit is a laudable goal. However, the timetable is too short for municipalities to transition without significant challenges that will be borne by their residents and taxpayers. 

The current electric and hydrogen bus procurement process makes it difficult for smaller and mid-sized municipalities to fill their orders and receive buses. They are competing with major urban centres across North America. Current delivery times are beyond two years and puts fleet replacement at risk. 

Additional fleets would be required to maintain service levels at current schedules, as municipalities would require two electric buses to every CNG bus. Due to the requirement of charging times throughout the day, buses would have to come off their regular service just to charge, requiring a backup bus to cover the service. 

CNG and clean diesel burn significantly cleaner than previously used fuel sources. While they are not zero emission, they still significantly reduce emissions when compared to previous diesel options. Additionally, CNG and clean diesel buses cost significantly less than electric or hydrogen buses. Currently, CNG buses can be purchased for approximately $850,000, whereas electric buses cost approximately $1,800,000 to $2,000,000 and hydrogen buses cost approximately $1,500,000 to $1,700,000. 

The environmental impact of transit is well established. Reducing the number of available buses has several major impacts on municipalities. First, it forces even more difficult choices between service levels and taxpayer supported costs. The reality is that fewer people will be able to access public transit if transitional funding of CNG and clean diesel buses is not restored. In addition, the environmental effects would be a net negative, as more people will be driving personal vehicles in municipalities who cannot afford electric buses. 

The Government of Canada has committed to net-zero emissions from fossil fuels by 2035. Electric and hydrogen buses are a part of reaching that target. However, the public good provided through public transit is at risk of being diminished by moving too fast. A target of 2035 to transition public transit fleets is a more reasonable approach that can still achieve the desired outcomes without unduly burdening taxpayers.