An electric powered EV school bus. (Credit: Thomas Built Buses / Daimler-Mercedes Benz)
The Brick Township Board of Education scuttled a plan to utilize a $7.8 million state grant to fund the purchase of 25 electric-powered school buses, a decision critics say could force the district to lay off staff since diesel buses will have to be purchased at full cost. Opponents of the electric bus purchase said, however, that the district would be taking a risk in acquiring the buses and installing more than $1 million worth of infrastructure to support them since there are concerns over the reliability and cost of batteries and maintenance.
The debate drew strong opinions from both sides and pitted some members of the public who are normally fiscal hawks against the majority-conservative board.
“You took $7.8 million and threw it in the garbage, and for that, you all ought to quit,” said resident Vic Fanelli, implying the political aspirations of some board members may have contributed to their decision-making process.
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Four members of the board – President Madeline Iannarone, Mike Mesmer, Frances DiBenedictis and George Malgeri – voted against the EV bus plan, while the remaining members of the board – Victoria Pakala, Allison Kennedy and John Henry – voted in favor of it.
The plan, which has been debated for several months, would have used $7.8 million in state grant funding to purchase 25 electric school buses and pay for the infrastructure to support the fleet. According to a memo issued by Business Administrator James Edwards, the district would have spent $572,668 to purchase the 25 buses that would be in service for 12 years, including the electrical work. Buying the same number of diesel buses over the same time period is estimated to cost about $3.5 million, which is the equivalent funding to support 34 full-time jobs once tax credits and fuel savings were factored in.
Superintendent Thomas Farrell said economic concerns were what prompted him to support a lease-purchase agreement to acquire the 12 buses via competitive bidding. While the EV buses and infrastructure would normally cost $11 million, the grant funding, credits and fuel savings would have defrayed nearly the entire cost.
“I know there are environmental benefits, but right now with the way our budget is, and our fiscal state, my job was to look at this from a financial perspective only, and that was the way I did look at it,” said Farrell.
Some members of the public opposed the EV bus acquisition, however, for a number of reasons, ranging from safety concerns over battery fires, to the potential high cost of servicing a fleet of EVs. One resident who heads transportation in another New Jersey school district said colleagues have reported maintenance issues and breakdowns with EV buses linked to software glitches, effectively taking a portion of the fleet out of service for periods of time.
“The reality is that school districts across the country are facing significant challenges with EV buses, including districts in New Jersey,” said Greg Cohen, a Brick resident who serves as transportation director for the West Orange school district. “And remember, when the grant money is gone, the cost to replace these buses is $400,000 each.”
Diesel buses, according to the memo issued by Edwards, estimated the cost of a diesel bus at $140,000.
Cohen said colleagues in the school transportation industry who deal with EV buses reported “frequent breakdowns, battery malfunctions and software issues that have taken buses out of service.” Notwithstanding those concerns, there was no obligation on the part of the district to replace the grant-funded EV buses with additional EVs.
Resident Charlie Bacon suggested a pilot program before committing to an order of 25 buses.
“We have concerns about heat, cold temperatures, icy roads, and whatever else you want to throw into the mix,” he said. “If you go with a pilot, it’s going to be less costly, and I think that’s a better option. Every day, EV technology is changing.”
Bacon also said that with Gov. Phil Murphy’s term about to end, EV policies could change in New Jersey – and federal policies have already begun to change under the Trump administration.
For district officials, the financial benefits of receiving $7.8 million toward buses outweighed the risks. A pilot program, the superintendent said, was not feasible since infrastructure costs and other factors would eliminate the cost savings if applied to just a small number of vehicles.
“The cost is too expensive on its own, but when you put $7.8 million – that you don’t have to pay back – into the equation, it automatically gives us positive cash flow of almost $500,000 in next year’s budget alone,” Farrell said.
Now that the EV plans are off the table, Farrell said the district will have to pay to buy seven diesel buses next year.
“There’s always risk involved when you’re doing something new,” Fanelli said before the vote was taken, but ultimately the 4-3 decision by board members indicated a feeling the risks were too high.
