Staff Report #8
January 29, 2025
To All Commissioners
Re: Zero Emission Bus Procurement Update
Recommendation
The report be NOTED and FILED.
Background
As part of the 2024-2027 Multi-Year Budget approval process, Municipal Council approved the budget associated with the Zero-Emission Bus Implementation Strategy as detailed below.
| City of London | Sr. Government | Total | |
| 10 – 40’ Electric Buses | $ 5,550,000 | $ 5,550,000 | $ 11,100,000 |
| 1 – High Powered Overhead Charger | 1,080,000 | 1,080,000 | 2,160,000 |
| 5 – Low powered Depot Charging Equipment | 440,000 | 440,000 | 880,000 |
| Civil Works for Equipment Installation | 650,000 | 650,000 | 1,300,000 |
| Facility work re: Hydro Grid Connections | 5,000,000 | 5,000,000 | 10,000,000 |
| Data Collection and Analytics | 260,000 | 260,000 | 520,000 |
| $12,980,000 | $12,980,000 | $25,960,000 |
This budget was based on estimated costs provided in the Zero Emission Bus Fleet Implementation Strategy completed for the Commission by the Canadian Urban Transit Research and Innovation Consortium (CUTRIC).
Subsequent to budget approval, the Commission also confirmed participation in a joint procurement for all project components, intended to result in a turn-key contract award. This procurement is being led by the Canadian Urban Transit Zero Emission Bus (CUTZEB), with both London Transit and Codiac Transit participating.
The procurement process includes the development of the Request for Proposal, which relied heavily on recent tenders and contract awards for similar equipment by other transit agencies across the country. This approach is intended to ensure that the most recent technologies and developments have been considered noting the rapidly changing marketplace for electric buses and related charging infrastructure.
At time of report writing, it is anticipated the Request for Proposal will be issued at the end of January, with an anticipated award in spring 2025, followed by a contract with the successful bidder. Based on current delivery timelines, it can be anticipated that buses and equipment will be delivered 18-24 months post contract confirmation.
When the budget for this project was approved by Municipal Council, there were a number of potential senior government funding programs that were anticipated to fund 50% of the program, with the primary one being the Federal Zero Emission Transit Fund. Unfortunately, given the wind-down of this program by the Federal government, it is no longer an option. The next potential source of funding is the Baseline Funding Stream of the Canadian Permanent Transit Fund announced by the Federal government, however, with the impending Federal election, the parameters of this program are also in question.
In addition to the uncertainty with respect to federal government funding, the inauguration of U.S. President Donald Trump resulted in a shift in policies impacting manufacturing, energy and zero emissions technologies. While it is too soon to fully understand the implications on pricing and availability of electric buses and related charging equipment for Canada, fluctuations are anticipated.
London Transit administration continues to work with civic administration on the identification of a source of funding for 50% of the project. Prior to contract award, a report will be provided to the Commission identifying the total available funding for this project, and the recommended purchase quantities consistent with available budget.
Recommended by:
Mike Gregor, Director of Finance
Craig Morneau, Director of Fleet & Facilities
Concurred in by:
Kelly S. Paleczny, General Manager