Clean Bus Solutions, a joint venture between Generate Capital and Blue Bird Corp., is adding employees and working with a network of bus dealers to advance its fleet electrification-as-a-service offering.

The joint venture, announced in December 2023, is offering Blue Bird’s electric buses, financing of both the electric vehicles and charging infrastructure, project planning and management, and fleet charging and optimization, according to a statement announcing the joint venture.

Chris Baker, general manager of Clean Bus Solutions, joined in July and has been assembling a team with bus experience, energy experience, and finance experience.

“There’s not a lot of it out there, so we’ve been very thoughtful about assembling a team that has deep experience in those areas,” Baker said in an interview with Infralogic.

The joint venture comes in the wake of a USD 8bn funding stream from the Bipartisan Infrastructure Act to pay for school bus fleet electrification.

There are three key pillars to support a school district’s transition to bus electrification, Baker said. The first is low-cost access to capital.

“That is where Generate Capital’s relationships, and structuring knowledge, and expertise, comes in,” Baker said.

A second pillar is Bluebird’s close relationship with school bus dealers, Baker said.

“Blue Bird works through an exclusive dealer network, and these dealers have a franchise in every state,” Baker said. “They are trusted advisors. We’re working hand-in-glove with the dealer network to make the transition to electric buses as smooth and as painless as possible.”

The third pillar, according to Baker, is reducing operational risk.

Blue Bird is able to help districts answer such questions as, “How do you install the EV chargers, how do you work with the local utility, how do you make sure the chargers work, and that the bus charges when it’s supposed to?” Baker said.

There are many reasons that school districts should electrify their bus fleets, such as reduced carbon and particulate emissions, Baker said. A lower cost of maintenance is another plus, he said.

“There are about 20 moving parts in an electric vehicle, compared to 2,000 in a vehicle with an internal combustion engine,” Baker said. “And Blue Bird’s customers have reported the cost of operating an electric bus is significantly cheaper, around 14 cents a mile in energy costs, compared to up to 50 cents a mile in fuel costs for a diesel bus.”

While larger school districts in the US may have a staff that is large and experienced enough to convert its bus fleet to electric, “the reality is that most people in a school district are busy, they don’t have the bandwidth to become experts in tax law and contract law, and on EV chargers and telematics software. In many ways, they’re looking to outsource that project,” Baker said.

Parents are likely to be supportive of school bus electrification, said Aaron Bielenberg, head of portfolio management for Generate Capital.

“Parents can be a catalyst for these programs in a lot of school districts,” Bielenberg said. “They may have heard about a friend or family member’s child in another school district riding to and from school in an electric school bus. “

That parental support “makes it really possible and easier for schools to deliver cleaner air and healthier learning environments,” thanks to a bus electrification program, Bielenberg said.

According to a white paper published by Generate Capital on school bus electrification, school bus fleets are “prime candidates for electrification,” as bus routes are predictable, and most existing bus yards have the necessary space to install the required charging infrastructure. Unused energy from the electric buses can be monetized by being fed back to the grid, which can boost overall grid reliability.

Generate Capital is a sustainable infrastructure investment and operating firm, raising USD 10bn to fund the infrastructure transition.

Georgia-based Blue Bird Corporation has more than 1,500 employees, with a presence in more than 60 counties.