Minnesota to receive $12.5M for electric school buses

The Environmental Protection Agency (EPA) announced Wednesday its tentative choices for $735 million Inflation Reduction Act (IRA) funds for clean heavy-duty vehicles. Minneapolis Public Schools and the Minnesota Pollution Control Agency are expected to receive $7 million and $5,514,766, respectively, for electric school buses.

The Minneapolis Public Schools will see 25 electric vehicle replacements and associated infrastructure. The total project amount reaches almost $10 million ($9,939,525, to be specific). With 25 buses, that averages out to $397,581 per bus and associated charging infrastructure. The EPA’s funding would cover about 70% of the cost of each bus.

The Minnesota Pollution Control Agency will receive $5,514,766 federal dollars for 19 school buses. The total project cost will be $8,438,828 — averaging about $444,149 per bus.

That lines up with national price expectations, with electric school buses being at least triple the upfront cost of diesel buses, depending on size. Electric school buses also stand to lose significant range in Minnesota’s cold temperatures. Metro Transit’s EV buses lost 40% of their range in cold weather. The prospect of stranding schoolchildren when an EV bus battery dies sooner-than-expected should be considered.

A tool from Argonne National Laboratory helps to lend context on the total cost of EV school bus ownership in Minnesota. Plugging in MPS’s average price of $397,581 per bus and chargers, an average diesel school bus price of $140,000, 15,000 annual miles (the tool’s default and similar to this estimate), and a 15-year operating lifespan (the tool’s default and a slightly conservative one when buses are replaced every 12 – 15 years), EV total cost of ownership is still more expensive than diesel school buses. An EV bus comes out to $754,549 while a diesel school bus comes out to $648,346.

Of course, there are a lot of unknowns to account for, including fuel costs, annual miles driven, and how long the district intends to use the buses. But imagine what good those dollars could do for educational outcomes.

The Shakopee Mdewakanton Sioux Community, one of only three tribal projects funded, is also expected to receive $190,000 for a single electric straight/box truck. The total cost is $390,343. The project was highlighted in EPA’s press release:

Shakopee Mdewakanton Sioux Community has been selected to receive an anticipated $190,000. SMSC will use grant funding to replace its laundry truck with an all-electric alternative. It has existing charging infrastructure onsite that can be used while it waits for new charging infrastructure to be installed closer to where the vehicle will be parked, enabling the new truck to be in service as quickly as possible.  

The Clean Heavy-Duty Vehicles Grant Program advances President Biden’s Justice40 Initiative, which aims to deliver 40% of the overall benefits of certain federal investments to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.

Details of each application were not available on the EPA’s website. “