TTC7.3 - Green Bus Program Update
Consideration Type: ACTION
Origin
(July 17, 2025) Report from the Executive Director, Innovation and Sustainability
Recommendations
It is recommended that the TTC Board:
1. Receive this report for information.
Summary
The Green Bus Program was first approved by the Board in November 2017 and included the introduction of the latest generation of hybrid-electric buses as a transitional step toward achieving a fully zero-emissions fleet by 2040. The program is aligned with provincial, federal, and international targets for emissions reduction. It is a key action under the City of Toronto’s TransformTO Net Zero Strategy and the TTC’s own 5-Year Corporate Plan, as well as its Innovation and Sustainability Strategy.
The TTC began its transition to a zero-emissions network with a strong foundation—over 50% of ridership already served by electric and emission-free subway and streetcar systems. As of today, approximately 77% of total ridership is on zero- or low-emission vehicles, reflecting the integration of hybrid and battery-eBuses (eBuses) into the fleet. Looking ahead, by 2031, the TTC aims for 50% of its bus fleet to be fully zero-emission.
With the retirement of the last Orion VII Clean Diesel buses in 2024 (the last buses in the fleet without diesel particulate filters), the TTC has phased out its highest-emitting buses. Since the Green Bus Program was initiated, fleet-wide greenhouse gas (GHG) emissions have been reduced by over 25% through the procurement of 591 new hybrid-electric buses and 208 battery-electric buses. By the end of Q1 2026, the current order of 340 eBuses will have grown the zero-emission fleet to 400, making the TTC’s bus fleet the greenest of large transit systems in North America.
Once our fleet is fully electrified, this transition is expected to avoid approximately 290,000 tonnes of carbon dioxide equivalent and 125 tonnes of criteria air pollutant emissions annually between 2040 and 2050. These emissions reductions are estimated to yield $460 million in avoided social costs of carbon and $2.8 million in healthcare costs avoided. This one action will reduce the TTC’s direct organization-wide emissions by ~28% by 2030.
Due to the timing of funding approvals, bus production lead times, and the need to replace aging buses at the end of their useful life, the next step in the program is to procure 200 hybrid-electric buses for delivery in 2026 through Q1 of 2028 (with contract language to additional hybrid buses should there be a need). As a transition technology, these new hybrids are proven reliable, impose no range limitations, and require no electrification infrastructure to be installed in advance. Further, they allow the time needed for the TTC to manage the organizational changes required for large-scale eBus operations.
With the procurement of these hybrid buses, we remain on track to achieve the TransformTO NetZero target of 2040. Funds totalling $1.2 billion are available in the Approved Capital Budget and Plan, subject to availability and approval of matching funds through intergovernmental grants, to advance electrification over the next five years.
As the TTC advances one of the leading fleet electrification programs in North America, it remains committed to learning and sharing with others. This report includes appendices intended to detail progress, risks, and opportunities in order to further this industry collaboration.
Financial Impact
2025-2034 Approved Capital Budget and Plan
The 2025-2034 Approved Capital Budget and Plan for the Green Bus Program identifies a need for $4.6 billion in funding over the 10-year period, of which $1.7 billion is funded, as detailed in Table 1 below:
Table 1 – Green Bus Program: 2025-2034 Approved Capital Budget and Plan
2025-2034 Capital Budget & Plan
(000's) | 2025-2029 | 2030-2034 | 10-Year Total | |
eBus Purchase | Approved Capital Budget & Plan | 1,054,345 | 135,904 | 1,190,249 |
CIP Unfunded | 571,211 | 1,406,442 | 1,977,653 | |
Total Capital Investment Plan | 1,625,556 | 1,542,346 | 3,167,902 | |
Charging Systems
| Approved Capital Budget & Plan | 512,357 | - | 512,357 |
CIP Unfunded | 464,036 | 473,397 | 937,433 | |
Total Capital Investment Plan | 976,393 | 473,397 | 1,449,790 | |
Green Bus Program Total | Approved Capital Budget & Plan | 1,566,702 | 135,904 | 1,702,606 |
CIP Unfunded | 1,035,246 | 1,879,839 | 2,915,085 | |
Total Capital Investment Plan | 2,601,948 | 2,015,743 | 4,617,691 | |
The $1.7 billion in approved funding includes the remaining funding to deliver 340 eBuses and 248 charge points with federal funding support through the Zero Emission Transit Fund. The 2025-2034 Approved Capital Budget and Plan included $1.2 billion in required matching City funding to prepare for future bus procurements and intergovernmental grant funding opportunities.
The TTC’s transition to a fully electric bus fleet is a long-term investment aimed at reducing emissions and improving financial sustainability. Although eBuses have higher upfront capital and operating investment than diesel and hybrid buses, they are anticipated to offer long-term net savings through:
- Net fuel savings
- More stable energy pricing
Lower maintenance requirements
Access to external funding
Long-term infrastructure amortization
While initial capital and operational investments to acquire and prove out this new technology are significant, these are expected to be offset by fuel and maintenance savings by the mid-2040s to early-2050s. Post-transition, operational savings could reach $83–$275 million, annually. See Appendix A for more information on methodology. Between 2025 and 2050, the Green Bus Program is projected to avoid approximately $8.6 billion in social costs associated with greenhouse gas emissions and an additional $53 million in health-related costs from improved air quality. These estimates reflect the broader societal benefits of reduced emissions, including avoided climate-related damages and public health impacts.
This analysis is continuously evolving as we gain more insights into transitioning the fleet to electric vehicles. It will be updated as new information becomes available and as advancements occur in procurement strategies, bus technologies, and charging systems. See Appendix A for additional details on the methodology used for the cost-benefit analysis.
The Executive Director, Finance has reviewed this report and agrees with the financial impact information summary.
Background Information
(July 17, 2025) Report and Appendices A-K from the Executive Director, Innovation and Sustainability on Green Bus Program Update
https://www.toronto.ca/legdocs/mmis/2025/ttc/bgrd/backgroundfile-257225.pdf