Internal federal documents show Ottawa examined a billion-dollar plan to electrify Canada’s school bus fleet even as departments raised ongoing concerns about the high cost of safety upgrades and vehicle changes.Blacklock's Reporter says according to an Access to Information memo prepared for senior officials in the infrastructure department, federal executives in 2025 reviewed a proposal to provide $1 billion in rebates to accelerate the transition from diesel-powered buses to electric models. Canada’s current fleet includes roughly 65,000 school buses, though the memo did not estimate the full cost of replacing them.The October 15 briefing note indicated federal officials were broadly supportive of recommendations put forward by the Green Budget Coalition, a lobby group promoting environmental spending. “We are generally aligned with the direction” of the coalition’s proposals, the memo stated, adding that discussions would continue on advancing climate and biodiversity goals.The coalition urged Ottawa to spend $1 billion over four years through the Canada Public Transit Fund to subsidize electric school bus purchases, suggesting point-of-sale rebates to speed adoption and reduce administrative delays. It argued that electrification would create economic benefits while providing quieter and cleaner transportation for students..At the provincial level, Quebec moved earlier, mandating in 2021 that all new school buses be zero-emission vehicles supplied by domestic manufacturer Lion Electric Company. However, the rollout faced setbacks when about 1,200 buses were temporarily sidelined following a fire incident in Montréal. No injuries were reported.Transport Canada has previously pointed to cost barriers in delaying other school bus safety measures. In 2024, the department rejected a proposal to require seat belts and postponed for up to 12 years regulations mandating blind-spot cameras.The internal review of electrification options came before Prime Minister Mark Carney announced a shift in federal policy, suspending electric vehicle sales mandates earlier this year. At the time, Carney said the government was reassessing its approach as part of a broader industrial strategy.The now-paused Electric Vehicle Accessibility Standard had required that 20% of new vehicle sales meet electric quotas this year, with a target of 100% by 2035.Despite that policy reversal, the documents suggest federal officials were still exploring large-scale electrification programs, including for school transportation, even as questions remain over cost, safety priorities and implementation timelines.
