Automotive
World’s first all-electric bus fleet shut down due to breakdowns and expense
From Heartland Daily News
Electric Buses Not a Panacea
Last week, the city of Seneca, South Carolina decided to shut down the Clemson Area Transit System, which served Seneca and nearby Clemson University. Once touted as owning the world’s first all-electric bus fleet, just a few years later two thirds of its expensive electric buses had broken down, the company that made them went bankrupt, parts were no longer available, and the city can’t afford to buy replacement buses.
Seneca is not exactly a major metropolis. But Clemson Area Transit isn’t the only transit agency to have trouble with electric buses. Just the day before Seneca decided to shut down its transit system, Austin’s Capital Metro announced that it was giving up on its plan to electrify its bus fleet by 2030. Electric bus technology, said the agency, simply hasn’t progressed far enough to replace Diesels.
California’s Foothill Transit, one of the first agencies to use rapid-charge electric buses in 2010, has also had problems. Like Austin, the agency had hoped to completely electrify by 2030. Instead, by 2020 most of the electric buses in its fleet were out of service. In 2021, the agency decided to return the buses even though doing so would require it to pay a $5 million penalty to the Federal Transit Administration, whose grant initially paid most of the cost.
The Southeast Pennsylvania Transportation Authority (SEPTA) may be the largest agency to have practically given up on electric buses. It pulled its 25-bus electric fleet out of service in 2021 when the buses were just five years old. The buses had suffered cracks in their chassis, but it appears that problem was only the straw that broke the omnibus’s back. “We do not feel the current [electric bus] technology is a good investment at this time,” concluded SEPTA’s general manager.
Transit agencies in Asheville, Colorado Springs, and several other cities have reported similar problems. Albuquerque completely gave up on its electric buses and returned them to the manufacturer, a Chinese company called BYD.
Electric buses cost 50 to 100 percent more than their Diesel counterparts. A 2019 study by US PIRG predicted that such buses would nevertheless save transit agencies $400,000 apiece over their lifetimes due to lower fuel and maintenance costs. US PIRG relied on four “success stories” to justify this conclusion. Success story number one was Seneca, South Carolina.
The report acknowledged Albuquerque’s problems but blamed them on the city’s hills and high temperatures. Compared with Austin, Albuquerque is practically flat and its temperatures are nowhere near as extreme. If electric buses can’t work in Albuquerque, they aren’t going to work in a lot of other cities.
Other than Albuquerque, one thing many of these failures have in common is electric buses manufactured by Proterra, one of four major electric bus manufacturers that have recently sold buses in the U.S. and the only one to actually be a U.S. company. In 2023, it claimed that COVID-related supply-chain problems had driven it into bankruptcy. The company’s three divisions — transit buses, batteries and drive trains, and charging systems — were sold to three other companies to pay Proterra’s debts and none of the buyers are supporting Proterra’s buses or even making similar buses. In view of the many problems transit agencies were having with its buses before 2023, it seems likely the supply-chain explanation was just a dodge for Proterra’s shoddy design and workmanship.
One reason for that may simply be opportunism on the part of bus manufacturers, including both Proterra and BYD. Before passage of the 2021 infrastructure bill, the federal government was paying 80 percent of the cost of Diesel buses but 90 percent of the cost of electric buses purchased by transit agencies. For a transit agency, that meant that an electric bus could cost twice as much as a Diesel bus without costing local taxpayers an extra dime. Bus manufacturers thus felt free to increase their profits by raising the price of their electric buses and, having done so, may have compounded the problem by cutting costs.
Beyond manufacturing defects, electric buses have several generic problems. First, while a Diesel bus can operate all day, an electric bus can operate only a few hours on a single time-consuming charge. Proterra claimed to have solved this problem with a rapid-charge system, but that didn’t prevent Foothill Transit from suffering enormous problems with its electric buses. This probably is particularly serious on long bus routes: Austin’s Capital Metro estimates that today’s electric buses could satisfactorily serve only 36 percent of its routes.
Second, the batteries needed to power electric bus motors are heavy, which is probably why SEPTA’s buses suffered cracks in their chassis. Supposedly, the frames on SEPTA’s Proterra buses were made of “resin, fiberglass, carbon fiber, balsa wood, and steel reinforcement plates,” which almost sounds like a joke. But making frames strong enough to support the batteries means adding even more weight to the buses, which shortens their range and adds to wear and tear on other parts of the buses.
Third, electric buses are not necessarily climate-friendly enough to justify their added cost. In Washington state, where most electric power comes from hydroelectric dams, switching from Diesel to electric buses will definitely reduce greenhouse gas emissions. But most other states, including New Mexico, South Carolina, and Texas, get most of their electricity from fossil fuels and thus electric buses may not reduce greenhouse gas emissions at all when compared with Diesels.
Under the 2021 infrastructure law, the federal government is handing out close to a billion dollars to buy electric buses. Advocacy groups such as US PIRG want transit agencies to “commit to a full transition to electric buses on a specific timeline.” Such funding and commitment may be premature, however, if electric bus technology is not capable of equalling Diesel buses, will cost agencies more in the long run, and won’t do much to reduce greenhouse gas emissions.
The Antiplanner is a forester and economist with more than fifty years of experience critiquing government land-use and transportation plans.
Originally published by The Antiplanner. Republished with permission.
Alberta
Premier Smith says Auto Insurance reforms mean lower premiums and better services for Alberta drivers
Premier Smith says Auto Insurance reforms may still result in a publicly owned system
Better, faster, more affordable auto insurance
Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.
After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.
Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.
“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”
“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”
Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.
Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.
Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.
In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.
Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.
By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.
“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”
Quick facts
- Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
- A 2023 report by MNP shows
Automotive
Bad ideology makes Canada’s EV investment a bad idea
It doesn’t bode well for our country that our economic security rests on tariff exceptions to be negotiated by Liberal politicians who have spent the majority of Trump’s public life calling him a “threat to liberal democracy” and his supporters racists and fascists. Their hostility doesn’t lend itself to fruitful diplomacy. In any event, Trump’s EV rollback and aggressive tariffs will spell disaster for the Canadian EV sector.
What does Donald Trump’s resounding win in the recent U.S. election mean for Canada? Unfortunately, there doesn’t seem to have been much thought about the answer to this question in Ottawa, because the vast majority of our political and pundit class expected his opponent to be victorious. Suddenly they’re all having to process this unwelcome intrusion of reality into their narrow mental picture.
Well, what does it mean?
It is early days, and it will take some time to sift through the various policy commitments of the incoming Trump Administration to unpack the Canadian angle. But one thing we do know is that a Trump presidency will be no friend to the electric vehicle industry.
A Harris administration would have been. But, Trump spent much of his campaign slamming EV subsidies and mandates, pledging at the Republican National Convention in July that he will “end the electric vehicle mandate on day one.”
This line was so effective, especially in must-win Michigan, with its hundreds of thousands of autoworkers, that Kamala Harris was forced to assure everyone who listened that the U.S. has no EV mandate, and that she has no intention of introducing one.
Of course, this wasn’t strictly true.
First, the Biden Administration, of which Harris was a part, issued an Executive Order with the explicit goal of a “50% Electric Vehicle Sales Share” by 2030. The Biden-Harris Administration (to use their own formulation) instructed their Environmental Protection Agency (EPA) to introduce increasingly stringent tailpipe emission regulations on cars and light trucks with an eye towards pushing automakers to manufacture and sell more electric and hybrid vehicles.
Their EPA also issued a waiver which allows California to enact auto emissions regulations that are tougher than the federal government’s, which functions as a kind of back-door EV mandate nationally. After all, auto companies aren’t going to manufacture one set of vehicles for California, the most populous state, and another for the rest of the country.
And as for intentions, though the Harris camp consistently held that her prior policy positions shouldn’t be held against her, it’s hard to forget that as senator she’d co-sponsored the Zero-Emission Vehicles Act, which would have mandated that all new vehicles sold in the U.S. be “zero emission” by 2040. During her failed 2020 presidential campaign, Harris accelerated that proposed timeline, saying that the auto market should be all-electric by 2035.
In other words, she seemed pretty fond of the EV policies which Justin Trudeau and Steven Guilbeault have foisted upon Canada.
For Trump, all of these policies can be filed under “green new scam” climate policies, which stifle American resource development and endanger national prosperity. Now that he’s retaken the White House, it is expected that he will issue his own executive orders to the EPA, rescinding Biden’s tailpipe instructions and scrapping their waiver for California. And though he will be hindered somewhat by Congress, he’s likely to do everything in his power to roll back the EV subsidies contained in the (terribly named) Inflation Reduction Act and lobby for changes limiting which EVs qualify for tax credits, and how much.
All of this will be devastating for the EV industry, which is utterly reliant on the carrots and sticks of subsidies and mandates. And it’s particularly bad news for the Trudeau government (and Doug Ford’s government in Ontario), which have gone all-in on EVs, investing billions of taxpayer dollars to convince automakers to build their EVs and batteries here.
Remember that “vehicles are the second largest Canadian export by value, at $51 billion in 2023 of which 93% was exported to the U.S.,” according to the Canadian Vehicle Manufacturers Association, and “Auto is Ontario’s top export at 28.9% of all exports (2023).”
Canada’s EV subsidies were pitched as an “investment” in an evolving auto market, but that assumes that those pre-existing lines of trade will remain essentially unchanged. If American EV demand collapses, or significantly contracts without mandates or tax incentives, we’ll be up the river without a paddle.
And that will be true, even if the U.S. EV market proves more resilient than I expect it to. That is because of Trump’s commitment to “Making America Great Again” by boosting American manufacturing and the jobs it provides. He campaigned on a blanket tariff of 10 percent on all foreign imports, with no exceptions mentioned. This would have a massive impact on Canada, since the U.S. is our largest trading partner.
Though Justin Trudeau and Chrystia Freeland have been saying to everyone who will listen how excited they are to work with the Trump Administration again, and “Canada will be fine,” it doesn’t bode well for our country that our economic security rests on tariff exceptions to be negotiated by Liberal politicians who have spent the majority of Trump’s public life calling him a “threat to liberal democracy” and his supporters racists and fascists. Their hostility doesn’t lend itself to fruitful diplomacy.
In any event, Trump’s EV rollback and aggressive tariffs will spell disaster for the Canadian EV sector.
The optimism that existed under the Biden administration that Canada could significantly increase its export capacity to the USA is going down the drain. The hope that “Canada could reestablish its export sector as a key driver of growth by positioning itself as a leader in electric vehicle and battery manufacturing, along with other areas in cleantech,” in the words of an RBC report, is swiftly fading. It seems more likely now that Canada will be left holding the bag on a dying industry in which we’re invested heavily.
The Trudeau Liberals’ aggressive push, driven by ideology and not market forces, to force Electric Vehicles on everyone is already backfiring on the Canadian taxpayer. Pierre Poilievre must take note — EV mandates and subsidies are bad for our country, and as Trump has demonstrated, they’re not a winning policy. He should act accordingly.
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