About episode
There’s a lot of talk about electric cars, but what about other vehicles like buses and trucks? Buses and trucks create 30% of emissions from the transportation sector, so they need to be a priority.
This episode focuses on school buses. It turns out that diesel school buses not only pollute the environment, but they cause real health problems for the kids who ride them. Fortunately, the shift to electric school buses has begun, and we’re featuring two people working hard to make it happen. Today, you’ll hear from Duncan McIntyre and Tim Shannon. Duncan is CEO of Highland Electric Fleets, a startup that helps school districts electrify their buses. Tim meanwhile is the Transportation Director for Twin Rivers Unified School District. He’s known as the godfather of electric school buses. We talk about the importance of phasing out diesel buses, what it takes, where we’re at in the transition, and what’s coming.
Alright, hop on the bus and let’s go.
In today’s episode, we cover:
- [2:29] Highland Electric Fleets & Duncan’s journey into climate work
- [5:40] Tim’s role & journey into climate work
- [6:25] The US school bus landscape & what’s wrong with it
- [8:53] The climate impacts of diesel buses & how electrifying them will help
- [10:41] The harmful effects of diesel buses on kids
- [11:50] The state of maturity of electric bus technology
- [14:20] What it takes for a school district to transition to electric buses
- [16:39] How Highland Electric is breaking down barriers to electric bus adoption
- [19:02] The economics: justifying investment & accessing funding
- [23:27] Where the adoption of electric buses is at
- [26:12] What else needs to happen to accelerate the transition
- [28:28] The potential for buses to provide a resilient source of electricity & examples
- [30:18] What can listeners do to be involved in the electric bus transition
Highland Electric Fleets & Duncan’s journey into climate work
Highland Electric Fleets is a company that helps cities and governments convert their fleets to electric power. His career has been in and around climate change, starting in renewable energy finance before founding Highland almost five years ago. The company provides financing and services to simplify the transition to electric power, which is often too expensive and complicated for many organizations. With close to 100 employees in 17 states, Highland is the largest purchaser and operator of electric school buses in the US. They are an asset-intensive business that has raised over $250 million in venture capital. Duncan finds working at Highland to be extremely rewarding, and he sees tremendous potential for growth and demand in the future.
Tim’s role & journey into climate work
Tim serves as the Director of Facilities, Planning, and Efficiency, in addition to the Director of Transportation at Twin Rivers Unified School District. He has spent most of his career working in school transportation. He came into the industry during the recession after previously managing a large photo lab in Sacramento. Tim’s passion for electrifying school bus fleets emerged after he noticed the negative impact of diesel buses on student health and the environment. Seven years ago, he launched the largest electric school bus fleet in the country, which now includes 58 electric buses.
The climate impacts of diesel buses & how electrifying them will help
95% of school buses in the United States today run on diesel. Duncan explains that there are two main ways electrifying buses can help mitigate climate change impacts. Firstly, electric engines are far more efficient in creating propulsion compared to combustion engines. Secondly, the carbon content of the kilowatt hour of electricity is much lower than that of diesel. Their school bus projects have shown carbon improvements ranging from 50% to 90% depending on the location. A special bonus is that electric buses can be charged during peak renewable energy production times, as they sit idle for 92% of the hours in a year. This makes them useful as stationary batteries to support the grid, capable of being charged inexpensively in the cleanest possible way.
The state of maturity of electric bus technology
Duncan says that the technology for electric buses is already here and it’s mature, as evidenced by Twin Rivers’ fleet of 58 electric buses, which is a significant percentage of their total fleet. Other examples include Montgomery County, Maryland, which is committed to transitioning 25% of their fleet to electric buses with 326 vehicles. Although there may be advancements in transportation technology in the future, battery electric buses are currently very promising due to their simplicity, reliability, and few moving parts. Duncan explains and Tim agrees that issues with electric bus fleets are usually due to inadequate planning for charging or implementation, or gaps in training, rather than problems with the technology itself. It seems we are well into the maturity and the reliability of battery electric transportation in a way that should drive the next 10 years of movement to a clean mobility environment.
The economics: justifying investment & accessing funding
According to Duncan, schools have the capability to purchase new electric buses by combining their capital and operating budgets, which they have not done in the past. He compares this to other industries, such as energy efficiency and solar technology, where specialized teams are needed to implement promising technologies that deliver energy savings. Duncan believes that the transportation industry is moving in a similar direction. While it may be difficult for someone new to the industry to make assumptions about fuel and repair costs, companies like Highland can use operational savings to justify the purchase of more expensive equipment. Funding for electric school buses can be pieced together from various sources, including grants, tax credits, and operational savings. While some believe that large grants are needed, Duncan argues that a little grant funding and creative solutions can make the project affordable. There are several pockets of funding available, including state and federal grants and tax credits. The Clean School Bus program is a $5 billion grant that provides cash incentives for electric school buses, and the Inflation Reduction Act offers a tax credit. Public-private partnerships and the power of tax credits can help drive down costs.
What else needs to happen to accelerate the transition
Duncan and Tim weigh in on the importance of working with utilities and the energy industry to accelerate the transition to electric buses. Duncan emphasizes the need for utility companies to re-envision their service provision to support an electric fleet world, as electric fleets require a substantial amount of power. He suggests that utility companies should create new rate tariffs in collaboration with the EV industry to incentivize charging at times of abundant power and not charging during times when the grid is strained. On the other hand, Tim agrees with Duncan’s ideas and suggests that the partnership between utility and school bus is essential for the transition to work. He shares his experience of negotiating with the utility provider to charge at the optimal time, receiving a lower rate of 12 cents per kilowatt hour, which is significantly lower than most places. Tim emphasizes the need for a partnership between utility and school bus to help accelerate the adoption of electric buses.
What can listeners do to be involved in the electric bus transition
Tim suggests that communities can get involved in the electric bus transition by working with their utility, providing feedback, and asking for rate structures that benefit disadvantaged communities. He emphasizes the importance of community interaction with utilities to accelerate progress.
Duncan highlights that the community can raise awareness among key decision-makers in the school system, including school board members, superintendents, and transportation directors. He suggests writing letters to superintendents to request a deeper dive into the space and encouraging transportation directors to listen to the interest level coming out of the community.
Resources Mentioned
- Highland Electric Fleets
- Twin Rivers Unified School District
- WRI’s Electric School Bus Adoption Dataset
- EPA Clean School Bus Program
- Inflation Reduction Act
- Community Recommendation: Climate Changemaker’s Action Playbook to Help Your City Electrify School Buses
Connect with Duncan McIntyre & Tim Shannon
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