Sacramento Regional Transit to buy new CNG buses, delaying zero-emission transition

By Madison Smalstig | Sacramento Bee (TNS)

Sacramento Regional Transit is delaying its pursuit of an all-electric bus fleet, a goal that follows state requirements and was taken up by the agency more than four years ago.

Two actions taken by the transit agency’s board of directors confirm the agency is committed to purchasing 78 compressed natural gas buses, 29 of which were initially supposed to be fuel-cell electric vehicles. These purchases stand in contrast to the California Air Resources Board’s requirement for all transit agencies to use only zero-emission buses — meaning battery electric or fuel-cell electric — by 2040.

The 78 buses, which are expected to replace buses that were due for retirement July 1, would make up about one-third of the fleet of 40-foot buses. With the previous buses averaging 16 years of service, replacing them with natural gas buses could complicate RT’s ability to meet the 2040 deadline.

The purchase of the buses, “is a near-term fleet replacement decision based on current operational, infrastructure, funding and technology considerations,” RT spokesperson Jessica Gonzalez said. “It does not represent a change in SacRT’s long-term commitment to transitioning to zero-emission technology.”

RT is not alone in facing these kinds of decisions, according to the Sacramento Area Council of Governments. Other California transit agencies are also dealing with hard choices amid financial pressures and declining ridership.

Federal grants shift to natural gas buses

The commitment to purchasing new natural gas buses — which still produce tailpipe emissions but generally emit less of some harmful air pollutants than conventional diesel buses — comes from two actions taken by the agency and its board of directors in July and August.

Twenty-nine of the vehicles were initially meant to be fuel-cell electric buses, which use hydrogen to generate electricity onboard. In 2024, Sacramento Regional Transit received $76.8 million through the Federal Transit Administration’s Low or No Emission Grant program specifically to purchase hydrogen fuel cell buses, convert the bus maintenance facility in McClellan Park into a low-emission facility and start a workforce development program.

When RT’s budget for the next fiscal year was approved in June, the project’s budget included the grant. The FTA then “approved SacRT’s request to remove all EV infrastructure and zero-emission elements” from the application of for the grant, according to board documents.

In July, the board of directors approved reallocating the $76.8 million to purchase natural gas buses and rehabilitating the McClellan Park complex, though without the low-emission infrastructure.

Sacramento City Councilmember Roger Dickinson, an RT board member, commented on the shift at the July board meeting.

“I am going to support (this) but I regret seeing this switch made necessary,” Dickinson said. “And this is not instigated at local initiative, at least as I understand it. We should make that clear.”

The other 49 natural gas buses were supported by a $39.7 million grant last year through the same FTA program. The agency also acquired $9.8 million in state transit assistance funds for the project.

At an August RT meeting, the board approved the purchase of the 49 buses through from Gillig. The buses range in cost from about $858,000 and to $893,000 in their current configurations.

The 49 buses are not scheduled to begin production until approximately September 2027, with deliveries anticipated to be completed by September 2028, Gonzalez said. RT’s Mobility Advisory Council, which represents and includes members of the disabled community, will review the designs for accessibility and can propose configuration changes costing up to a combined $500,000.

But the purchase of the 49 buses are is dependent on permission from the Air Resources Board. The purchase violates CARB’s requirement that 50% of the agency’s new bus purchases be zero-emission in 2026. RT is continuing to work with CARB to obtain an exemption, for which an individual application would be submitted in November.

“CARB has been supportive of SacRT’s efforts,” the agency said in board documents, due to “the current fiscal and operational challenges facing the transit industry, including the need to preserve available federal funding and the availability and maturity of zero-emission bus technology.”

Why RT is sticking with natural gas

RT decided to purchase new natural gas buses because of a variety of factors, including funding, infrastructure and timing, according to board documents.

“CNG is a technology SacRT can support today,” Gonzalez said. “The agency already has CNG fueling infrastructure, maintenance capabilities and operational experience.”

RT does not have fueling infrastructure for hydrogen fuel-cell buses or charging infrastructure for a large number of battery-electric buses. Fuel-cell buses are also “built to order,” which can take longer to manufacture, Gonzalez said.

The timing is an issue because 78 aging buses are due for retirement and need to be replaced quickly.

Dickinson had a different understanding of the reallocation of the $76.8 million from fuel-cell buses and infrastructure, saying that he suspects the switch was part of changing priorities under President Donald Trump’s federal administration. He said he believed the grant was going to be revoked if the agency spent the money on fuel-cell buses.

“Unfortunately, this kind of direction from the Federal Transit Administration is a manifestation of the antipathy that they current federal administration has regarding climate change,” he said. “This overriding climate denial at the federal level is compromising our ability to do what we think is necessary locally.”

Asked about the reallocation, RT said in a statement that “the Federal Transit Administration has also provided transit agencies with greater flexibility under the Low or No Emission program to request changes from zero-emission to low-emission technology, recognizing the challenges agencies face in deploying zero-emission fleets.”

RT said it was still pursuing zero-emission projects.

In its 2026-27 budget, which began July 1, RT still has $62 million budgeted for projects involving zero-emission buses, fueling infrastructure and workforce development. It is seeking $57.7 million for 21 fuel-cell electric buses through a State Transportation Agency program.

Natural gas buses offer savings, require exemption

The compressed natural gas buses chosen for the 49 replacements are the best option outside of electric, according to Dickinson.

“Regional transit decided to begin buying CNG buses in 1990 as a step toward cleaner air,” he said, adding that he was involved in the decision process. “The CNG buses that RT is now going to get are better than the ones that were available when we started buying them.”

According to RT board documents, the new buses will reduce smog-forming nitrogen oxide emissions by 90%, compared with the Environmental Protection Agency baseline standard.

By RT’s calculations, they would also save up to $2 million annually in spare parts and non-preventive maintenance labor during the first year of the manufacturer warranty. About $460,000 would be saved in fuel costs.

Still, the purchase would be in violation of CARB’s Innovative Clean Transit regulation. While having all zero-emission buses by 2040 is the overarching goal, there are also short-term regulations that transit agencies must meet and, if they don’t, they require approval. For large transit agencies, the rules require 25% of bus purchases be to be zero-emission throughout 2023, 50% in 2026 and 100% in 2029.

Exemptions can be made because of “circumstances that are beyond a transit agency’s control,” including financial hardship and the availability of vehicles, according to the CARB website.

Many transit agencies are facing funding issues. Four of five transit agencies in Sacramento, Sutter, Yolo and Yuba counties are projected to face structural operating deficits over the next 10 years, according to SACOG’s long-range financial plan published this year.

“The near-term goal is to help stabilize transit funding and strengthen financial sustainability; an exemption would allow transit agencies to focus on this,” SACOG spokesperson Mia Lopez said. “The transition to a zero-emissions fleet and supporting infrastructure is prohibitively expensive.”

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