1. Electric School Bus Opportunity Overview
Protecting the Midwest’s Environment and Natural Heritage
Electric School Bus Opportunity Overview
NASUCA, sunny Orlando Nov 13, 2018

2. Diesel School Buses Contribute to Childhood Asthma
Diesel school bus tailpipe emissions (including NOx and PM 2.5) are asthma exacerbating pollutants
Asthma attacks are triggered by pollutants like NOx emissions from diesel school buses resulting in unnecessary hospitalizations and deaths
School buses idle while dropping off and picking up students, furthering children's daily exposure to these pollutants
Children are exposed to diesel fumes while riding and getting on and off diesel schoool buses. Asthma, which diesel pollution exacerbates, is now the most common chronic condition among U.S. children, affecting 1 in 10 in the U.S. More than 10 million U.S. children aged 17 and younger have been diagnosed with asthma. Among African-American and Hispanic children the rates are higher. Some urban neighborhoods have rates of 1 in 3 kids! Asthma attacks cause hospitalizations and even deaths; these are avoidable with less exposure, proper medication and education.
Asthma is the most common chronic condition among Illinois children
The wheelchair lift on school buses is located in the rear of the bus next to the exhaust pipe. Special needs children who are the most vulnerable are also the most exposed to pollution.

3. Electric School Buses Matter Because Dirty Buses = Sick Kids
Children breathe 50% more air per pound of body weight than adults and their lungs
are still developing, making them especially vulnerable to cancer and respiratory diseases caused by diesel pollution. Diesel school bus commutes account for 1/3rd of children’s daily exposure to black carbon. Zero emissions electric school buses have no tailpipe emissions which means no harmful local air pollution that can cause and exacerbate asthma.

4. There Are 160+ Electric School Buses On The Road In North America

5. All U.S. School Bus Manufacturers Now Offer or Are Developing Electric Models
All major domestic school bus manufacturers (Blue Bird, Thomas and IC Bus) now offer electric models
TransTech, Starcraft and eLion also offer electric models
Blue Bird All American RE Electric
IC Electric Bus ChargE™
Thomas Saf-T-Liner® C2 Jouley School Bus

6. VW Settlement Offers Funding For Electric School Buses in Illinois
VW Mitigation Fund Allocations for Midwest States
Volkswagen (VW) violated the Clean Air Act by selling ~590,000 model year 2009 to 2016 diesel cars with defeat devices designed to cheat on federal emissions tests
This resulted in excess NOx emissions of more than 40,400 tons
US EPA and others sued VW resulting in a mitigation trust settlement through which each state will receive millions of dollars for projects that reduce NOx emissions
Illinois EPA has dedicated $10.8 million (10% of its funds) to replace pre-2009 diesel school buses with electric school buses
The recent settlements to the VW defeat device scandal involving the sale of over a ½ million cars with Nox emissions 40 x the allowable limits provide a new opportunity to clean up diesel vehicles and equipment, including school buses. USEPA and others successfully sued VW, leading to the creation of a mitigation trust fund resulting in each state receiving millions of dollars. Each state’s allocation is based upon the number of cars with the defeat devices sold in the state. [Read the chart so it is clear how much money goes to each state]. Tamara will now discuss the limited eligible uses of this money, which include replacing dirty diesel school buses with clean electric school buses.

7. Electric School Bus Opportunity In Ameren’s Service Territory
There are 500+ pre-2009 school buses in Ameren’s service territory eligible for the $10.8 million of dedicated electric school bus funds through Illinois EPA
Transitioning these buses to electric would be the equivalent of taking 13,500+ cars off the road in terms of pollution reduction

8. There is An Oversupply Of Clean Energy At Night In Ameren’s Service Territory
Low and stable nighttime electricity rates would encourage smart nighttime charging and take advantage of clean energy resources as wind energy is more abundant at night
School districts would be able to more accurately budget for operating costs as electricity rates would be more stable than diesel fuel prices

9. Electric School Buses Can Generate Revenue Through Vehicle-to-Grid (V2G)
V2G is a system that allows for bi-directional electricity flow between electric vehicles and the grid
Electric school buses can serve dual-use as zero emissions transportation during the school year and as a grid resource during peak demand times of day and peak demand season when the buses are idle (about 75% of the year)
School bus is idle 80% of the time
Note: Estimated charge time based on eLion Type C Bus

10. V2G Revenues Significantly Improve Electric School Bus Economics
Including V2G results in a total cost of ownership that is lower by ~$40,000+
Utilities are best positioned to capture V2G revenues and take advantage of the second life of electric school bus batteries
Cash flow O&M savings range from $17,000 to $22,000 each year
V2G revenues bring in an additional $3,000+ per year
Manufacturers have indicated prices could drop by up to 40% with quantity, which would improve total cost of ownership by about $128,000
Cost Component
Diesel Bus
Electric Bus
(at List Price)
Difference
Vehicle, Charger, Battery Replacement
$100,000
$340,342
-$240,342
Operating Cost
96,706
3,595
93,112
Maintenance Cost
195,285
48,821
146,464
Net of V2G Revenues
38,836
-38,836
Total Cost of Ownership
$391,991
$353,922
$38,069
Note: All amounts are discounted to present day at the inflation rate.
Key Assumptions: electric bus price of $320,000; charger cost of $3,800; replacement battery cost of $19,080 in year 8; price of diesel of $3.24/gallon (10-year average), price of electricity of 1.5 cents/kwh, maintenance cost savings of $0.75/mile

11. Bulk Purchasing Through Utility Programs Would Result In Discounted Prices
For every $20,000 decrease in price, which can be made possible with bulk purchasing through a utility program, the payback period decreases by a year
Low electricity prices also help improve the economics of an electric school bus
For a $320,000 electric school bus, a preferential nighttime electricity rate of 1.5 cents/kWh will decrease the payback period by about 2 years
Note: Payback period = acquisition cost differential / annual operating and maintenance cost differential

12. Getting it Done….