Zero-Emission Buses in the US: Understanding and Addressing Market and Policy Challenges

As the US public transportation sector accelerates its shift from fossil fuels to zero-emission alternatives, transit agencies and transit bus manufacturers alike face significant uncertainty and instability. This report provides policymakers with updated insights into the US transit bus market, focusing on key industry dynamics, financial challenges with zero-emission bus (ZEB) acquisition, technological obstacles in deployment, and regulatory issues. The research relies on interviews with stakeholders, a detailed review of existing literature, and an analysis of US public transit data. Key findings reveal ongoing challenges related to costs, supply, reliability, and workforce development, all of which hinder the adoption of ZEBs. Specifically, challenges include the reality that purchase prices for zero-emission buses in the United States remain significantly higher than internal combustion engine (ICE) vehicles and have not declined as quickly as previously theorized. Additionally, the full-size ZEB market in the US has become highly consolidated, and most transit agencies lack capacity in terms of technical knowledge, staff, and funding required for a successful transition to ZEBs. Potential options to combat these challenges may include enhanced funding mechanisms, industry partnerships, facilitating access to supporting technologies and best practices, and undertaking initiatives to prepare the ZEB workforce. While more research is needed to support the sector's full transition to ZEBs, this report provides actionable insights policymakers can use in a rapidly evolving market to identify solution areas for further exploration and ease transit into a more sustainable future.