More power options are coming soon to the large school bus space as Cummins prepares to launch a second gasoline engine option for the market and its long-awaited successor to the 6.7-liter diesel engine.

The gasoline or octane engine will be in full production next January, with the new B7.2 diesel engine available January 2027, the company announced earlier this month. The new gasoline engine will be available January 2026.

Both engines are the initial launches of Cummins’ HELM, or Higher Efficiency, Lower emissions and Multiple fuels, platform. The engine lineup is referred to as “fuel agnostic,” the base engine remains the same, but the fuel heads can be swapped for diesel, gasoline and eventually CNG.

Currently, the school bus industry only has one choice in gasoline and propane, that being the ROUSH CleanTech auto-gas system for Blue Bird.

Cummins originally planned on adding a propane offering on its HELM platform but announced last year it would forego that option.

The B7.2 meets the upcoming EPA Greenhouse Gas Emissions Phase 3 rule set to go into effect in 2027. The company said will emit approximately 85 percent less NOx and 50 percent less PM than 2010 model year diesel engines. In an overview provided to School Transportation News, Cummins explained that lower GHG result from the clean-sheet base engine and optimized components.

“One of the most significant changes is the increase in peak cylinder pressure capability, allowing us to extract the energy from the fuel more effectively,” the overview states. “As greenhouse gas emissions are directly proportional to fuel burned, the improvements made to improve GHG emissions also save fuel, reducing the operating costs of the new B7.2.”

The diesel will also be compatible with automatic engine shutdown and stop-start systems that can lower fuel consumption as well as GHG.

On a recent episode of the School Transportation Nation podcast recorded at STN EXPO East, Francisco Lagunas, general manager of the North America bus segment at Cummins, said the B7.2 diesel engine will provide a wider range of torque as the company address the various duty cycles of its customers and the environmental condition they operate in.

“There are big differences north to south, coast to coast. Cummins focuses on reliability and what’s best for the customer,” he added.

This includes ACUMEN that provides access and connectivity to a range of applications for , digital insights.

“Customers can utilize these detailed tools to enhance the driving experience including predictive capabilities and over-the-air features that will reduce visits to the shop, increase uptime and minimize the operations,” Lagunas continued. “It will also take advantage of options like compression brake or extend the oil drain intervals.”

Meanwhile, Lagunas said the new octane engine available next year will provide diesel-like performance for both reliability and durability. He added that fleet operators can expect 10 percent improved fuel economy based on the duty cycle.

Related: School Districts Replace Diesel Buses with Propane, Electric
Related: Cummins Electrification Rebrand Promises Acceleration of Electric School Bus Production
Related: What to Know About Federal Fuel Tax Credit on Diesel

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School bus manufacturing leadership has seen a flurry of activity over the past six months. True to form, Thomas Built Buses looked within the Daimler Truck North America family for its next president and CEO to succeed Kevin Bangston, who now leads Daimler Truck Financial Services. T.J. Reed got his start at Daimler Truck in September 1998 and has spent 19 years total with the company, and nearly another six years spent at Meritor heading its global electrification as well as front drive train businesses. He was tapped in October to lead Thomas.

“It feels like five, six years already, and that’s been a good thing,” he told School Transportation News last month. “Early on, I had my first trade shows. I was blown away [by] how the entire industry was really on the same page, not only the camaraderie and the spirit of working together [but] on a common mission. But it was OE’s, suppliers, districts, contractors really just loving what they do and being passionate about school buses. That’s rubbed off. And you can’t help but feel that when you’re in High Point at Thomas.”

Thomas would not comment on potential tariff impact, but the American Trucking Associations’ outlook is a potential price increases of up to $35,000 for a heavy-duty truck, granted those are made in Mexico whereas Thomas is not.

Meanwhile, Reed said employees are “pumping out” high-quality school buses every single day and benefitting from increased investment to accomplish the job. In July, the manufacturer announced its new Saf-T-Liner HDX2 school bus and moving production to the C2 SafT-Liner plant in Archdale, North Carolina, for increased efficiency and quality.

He also discussed the HDX2 as well as efficiency improvements to the second-generation Jouley electric school bus, the continued role of diesel, and more.

The following transcript was edited for clarity and space.

STN: Talk about why Thomas chose the Accelera e-axle to power the latest Jouley.

TJ Reed: I think the biggest thing, Ryan, and when you look at it, I would say the technical concept or the promise of an e-axle is you’re not only increasing performance from an efficiency perspective, you’re lowering the weight, you’re improving packaging. It’s ideally suited for school bus, even a last mile item. If you think about it, you’re taking a lot of components that are inside the frame rails that add a lot of weight, and you’re basically collapsing it down inside the housing of a carrier. And you got your traditional axle, you’ve got your motor and your transmission all in a compact space, and
that frees up a lot of room for batteries to be placed in between the rails, and you can shorten the wheelbase. That had been some of the challenges with the early generations. You were pretty restricted on the variation of the product. And as we know, school buses are pretty custom. So, this just opens up a lot of flexibility. And the other great thing is this continued maturity of components. The product’s been out in the market for a while, been operating in a heavy-truck configuration. We know it’ll live in the life cycle and certainly Cummins/Accelera is a great partner. They have a lot of resources and know-how. All those things come together. It could be just a much better experience for the districts and the bus operators. Just another step in the progression. This is great to see it come to market now.

STN: We have seen some electric school bus market consolidation recently. What is Thomas’ perspective on ramping up production to meet demand? How is Thomas positioning itself to meet that demand?

Reed: It’s a long-term play. As we like to say, we’re leading with the long view. At the end of day, school bus is the ideal duty cycle when you got majority of ranges under 100 miles a day. You’ve got overnight charging in the depot. You’ve got a lot of stop and go for regenerative braking. It’s ideally set so that it is specific to school buses. But you know, part of Daimler, globally we serve markets all around the world and want to lead in this space. With that, we work with a lot of different partners, from battery partners, drive systems, accessories, financial services. It’s a significant investment for our dealers as well. [Daimler has] continued to invest, like in the Greenlane [charging station joint venture]. Those things take time to put in place, and you don’t make investments on short-term plays. This is a long-term play, and this is an area that we think is going to be not only the right thing to do for our environment, for our communities, but it’s going to be the right long-term play for our customers from an efficiency and certainly from a health and community perspective, especially on school buses.

That’s why it’s important we have what I would call our core business based upon internal combustion engines. That generates the cash flow that allows us to invest in a lot of this technology. We’ve got, I would say, that very phased approach, where we install, we learn, we adapt, we perfect, we continue to move forward. That’s not only just with us, that’s with our customers, as we learn how to put these new vehicles in applications that they hadn’t been in before. We’ve been doing internal combustion engines for over 100 years, and that was always changing and evolving. So, there’s nothing different here. But it’s nice, too, from a Daimler perspective, we have the global toolbox, that know-how. There are components and systems that we can use that work for us in a school bus application, some that don’t. So, we have that optionality to really work with a lot of different partners, including ourselves. That gives us a lot of capability.

STN: We’ll get back to diesel in a moment. Obviously, range is a challenge with electric school buses. But infrastructure has been named by many as the biggest challenge to adoption and scalability. Does that continue to be the number one obstacle? Are there others?

Reed: We have a kind of famous calculation that we always talk about in the marketplace. You’ve got to have infrastructure readiness. You’ve got to have a vehicle that’s ready. Then, you’ve got to have basically the economics from a TCO of operation. If any one of those factors is zero, the calculation is zero. And certainly, we’re still in the very early days of infrastructure. So, for us to get to the point where we’re going to start to scale and see higher volumes, we’ve got to have infrastructure certainly coming in at a much greater pace. That’s not just only for school buses, that’s commercial vehicles, that’s passenger cars, that’s everything, in general. I think that theme hasn’t changed. We’ve seen investment, we’ve seen partnerships, but those need to continue to scale up. Then the second part of the equation is, we ’ve got the vehicles. They’re ready. They’re performing in the market today, and they’re getting better and better every day. And as they do that, that’s going to increase volume. As volume increases, that’s going to start to bring the cost down to help with the TCO parity. All those three things need to line up, and infrastructure remains the biggest challenge, not just in the school bus industry but really across the board.

STN: What role has the EPA Clean School Bus Program played in terms of pricing electric school buses compared to supply chain congestion?

Reed: There’s certainly circular logic when it comes to supply and demand in how that impacts costs. I would say this, from a technology development what we’re looking to do in our longterm plans [is] for component systems that drive down costs, that are getting, I would say better performance, more range. The reality is, in the near-term, those are still very low volume systems, and you know that at the end day that battery-electric
vehicles will be significantly more expensive than internal combustion engines from a
scale perspective. There was the [viewpoint] that battery cell cost was going to start to come down, and then you really saw the supply chain crunch… I would say commodities that go into battery development spiked. So, prices went up. We were dealing with that. And now, too, it is absolutely true in these early days [that] funding is critically important to kind of drive the early development of those early adopters. And as that either steps down or is removed, then the cost obviously goes up, and that then kind of lowers volume. I wouldn’t say it’s going to stop our progress, but it will certainly have an impact and slow it. But again, we see it as a long-term view, that it’s not an if, it’s a when. Now that one, I can’t tell you, but it’s still a situation where we probably got to have the infrastructure coming back in. There’s got to be some level of subsidies for that. In the meantime, we’re all working in unison to bring better technology to market at a lower cost, so that takes time to do, collectively.

STN: We’ve also seen an industry trend toward bigger electric school buses. Do you have any plans that you’re willing to talk about as to an eventual electric HDX2?

Reed: I’ll foreshadow this. Some great news is coming. But what I would tell you is we absolutely see the need in the market. We absolutely see the need in our product portfolio, and we have some great solutions, so stay tuned.

STN: Daimler Trucks North American recently added investment into Detroit Diesel, and the California Air Resources Board ceased seeking additional federal waivers to fully implement its Advanced Clean Trucks (ACT) rule for heavy-duty trucks. How do these developments impact the school bus market?

Reed: The Detroit Diesel investment, that’s more for our heavy-duty products, more on the truck side. Everything that we do on the school bus is medium range. That’s Cummins, our partner there. When you look at that, just in terms of diesel, we believe you need all types because the applications are so vast, that the use cases are so different that you need a lot of different technologies to drive to zero emissions. Diesel has a critical role to play. And you’re right, with a lot of investment not only by us in our proprietary engines but our partners from Cummins and our competitors as well, it is continuing to lower emissions. You’ve got GHG phase three that will be coming in 2027. There’s additional tailpipe reductions. All those are being engineered into our buses now. I mean significantly lower NOx and particulate matter, even over the last 10 years. These are much cleaner running engines today. There are requirements, yes, for the ACT rule, where in some states, in order to be able to sell internal combustion engines, you have to have a certain number of battery electric. But that’s been, I would say, one of the success stories of the Clean School Bus Program. It’s seeded enough diesel capability or opportunity in some of these states, we haven’t had an issue with that. Diesel is going to continue to play a role as well as other modes of propulsion. We’re invested in all.

STN: And in terms of gasoline or octane, Thomas is also coming out with an option provided by Cummins in 2026 or 2027.

Reed: We’re making investments across different modes of propulsion, different emissions technologies. You’ve got to have answers for all your customers, no matter what their duty cycle is. And octane, you know, gasoline will play a big role for that. We’re excited about that as well.

STN: Thank you

Editor’s Note: As reprinted in the March 2025 issue of School Transportation News.

Related: (STN Podcast E251) Making Safety Safer: Seatbelts, Technology, Training & Electric School Buses
Related: The Tricky Part About Electric School Buses: Planning and Paying For the ‘Fueling’ Infrastructure
Related: Are you forecasting to purchase more diesel school buses this upcoming cycle than previously planned?
Related: Future of Electric School Bus Funding Remains Unknown, Warns Expert

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Yellow continues to go green as school districts across the country modernize fleets with the latest alternative fuel technologies, to support cleaner air for students and the neighborhoods where they live. Through expanded offerings in bio- and renewable diesel, ultra-clean propane and natural gas, and battery electric offerings that eliminate tailpipe exhaust, owners and operators have options to support their sustainability initiatives in an economic fashion.

From traditional bus manufacturers to startups and new market entrants, manufacturers are offering near- or zero-emission school buses and showing no signs of slowing down. Shifting incentives and regulatory landscapes have not dimmed the prospect of the school bus industry’s clean transportation future.

The Changing Chess Board of School Bus Manufacturers

Original equipment manufacturers like Blue Bird, IC Bus, Thomas Built Buses, Collins and Micro Bird offer diversified product portfolios, including options for near-zero and zero-emission school buses. Market competition, specifically in the all-electric space, has increased with companies like RIDE, GreenPower Motor and others entering the market with zero-emission solutions.

Up until last year, trends showed that the silver bullet solution of zero emissions would be the favored choice for the school bus market. Indeed, many schools have successfully deployed battery electric fleets and are having favorable operational results. However, recent economic, political and customer demand changes have started telling a different story — diversified product lines give consumers the flexibility to find the right solution.

One of the most telling signs for electric vehicles was the slate of bankruptcy announcements, from onetime industry darlings like Lion Electric on the school bus side and Nikola Corporation on the heavy-duty truck side. Further, the fate of unprocessed orders and recently delivered assets — and the deleterious impacts of grant funding pauses — would seem to indicate that a diversification in product offerings could be a viable risk mitigation strategy during times of market uncertainty.

Incentive Structures Expected to Change for School Buses

The EPA’s Clean Schol Bus (CSB) Program has served as the primary incentive for alternative fuel school buses over the last three years. Indeed, since 2022, CSBP funding has supported over 1,300 school districts to deploy over 9,000 alternative fuel school buses. The Diesel Emissions Reduction Program (DERA) has also funded more than 3,000 clean diesel and alternative fuel school buses since 2012.

Though many diesel replacement funding programs across the country use cost-effectiveness to evaluate projects and funding levels, the school bus market has often seen a flat rate or voucher-style incentive. Most recently, the EPA set the voucher for battery electric buses at more than $300,000 per unit. With increased scrutiny on federal incentives and their effectiveness, the incentives landscape will likely move away from these flat rate structures.

Beyond the EPA’s initiatives, several states have prioritized the transition to diesel alternatives by creating grant programs that offset the upfront investment for the buses and required infrastructure. California’s most recent incentive, the Zero Emission School Buses and Infrastructure (ZESBI) Program, aligns with similar initiatives in Colorado, New Jersey, and New York that promote all-electric options. Michigan, too, prioritizes clean school buses, though its program includes eligibility for all-electric and near-zero emission options. In total, these state-level programs may drive as much as $1 billion in aggregate incentives to the alternative fuel school bus market.

Aligning with President Donald Trump’s executive orders and the focus on domestic energy, several alternative fuels seem primed to gain (or perhaps regain) momentum — renewable diesel/biodiesel, natural gas, and propane. Hardly a new technology, propane in particular has served as a clean transportation industry stalwart for decades, lauded by its fleet adopters for its ability to provide affordable, efficient, and accessible clean transportation. More and more school districts, businesses and transit agencies may review the viability of these domestically produced alternative fuel options as a means of affordably diversifying fuel supply.

Shifting the Lens: Finding Market Drivers in a New Administration

The slate of recent executive orders has introduced a new set of agendas, initiatives and motivators. While the market continues to absorb and assess the potential implications, one element stands out in stark contrast, the short-term funding landscape holds plenty of uncertainties. From the status of existing EPA programs to the planned use of funds from the Investing in Infrastructure and Jobs Act and the Inflation Reduction Act, there is still much to understand about where future federal funding may come from for alternative fuel school buses. However, as noted above, state funding programs offer a viable solution.

Beyond incentives, additional motivators for going green include regulatory mandates and carbon credit programs. In California, Assembly Bill 579 requires school districts to purchase zero-emission buses starting in 2035, and other states such as New York and Washington have proposed or approved similar measures. The portfolio of states with carbon credit programs grew from three to four with the addition of New Mexico.

Now, New Mexico as well as California, Washington and Oregon are generating revenue for fleet operators and creating additional interest in battery electric projects.

Final Thoughts

America’s yellow school buses have made considerable strides to improve performance, air quality and safety, and these trends are expected to continue well into the future. Challenges and opportunities abound though, as market drivers, political and policy motivations, and sustainability trends continue to shift. Upcoming announcements at the Federal and state levels will be telling as to how the school bus market will need to adjust priorities and continue the adoption of alternative fuel technologies.

Upcoming Events

Trying to stay on top of the changing policy and funding landscape? Look to STN’s events over the next few months as well as ACT Expo as critical opportunities to hear directly from funding agencies, fellow school districts deploying alternative fuel buses, and manufacturing partners. ACT Expo, the largest advanced commercial vehicle technology showcase in North America, offers just that, a four-day conference bringing together the leading alternative fuel manufacturers, infrastructure providers and fleet operators. Editor’s note – School Transportation News is an official media sponsor of ACT Expo.

ACT Expo, which returns to Anaheim, California, this spring, will host a school bus sector session on April 30 for transportation directors to learn more about this ever-changing landscape. STN EXPO’s Green Bus Summits, occurring in Charlotte, North Carolina on March 23-24 and in Reno, Nevada on July 13-14, offer similar content around policy and incentives.

Joe Annotti is the senior vice president of incentives for the TRC Clean Transportation Solutions, the organizer of ACT EXPO. He presents the session “State of Green Schools Buses” at STN EXPO East in on March 23.

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Bergen, Norway February 17th, 2025 — Since going into service in 2015, the MF Ampere has now sailed an astonishing distance equivalent to 17 times around the equator on batteries alone, solidifying its place as a groundbreaking achievement in sustainable maritime transport. A decade on and the Ampere continues to showcase the transformative potential of electric …

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Ahead of President Donald Trump returning to the Oval Office and his promise to “drill, baby, drill,” school districts nationwide indicated they weren’t completely sold on electric school buses.

That is one conclusion that could be made after school bus manufacturers reported only 26 more electric school buses were manufactured despite year three of the U.S. Environmental Protection Agency’s $5 billion Clean School Bus Program and a 145-percent increase in electric manufacturing the previous year.

It should be noted that school bus manufacturers have only so much current capacity at their factories for electric school buses despite recent new plants opening over the past year. However, one of those, Lion Electric’s plant in Joliet, Illinois, was closed at least temporarily at the end of 2024. At this report, it remained to be seen how long the struggling Canadian manufacturer would remain in business as it sought further extensions of credit lines as well as potential purchaser.

Previously, school bus OEMs have commented that they would each eventually need to achieve an annual output of at least 2,500 electric school buses, a figure widely considered to be necessary for for eventual market saturation. A bet made was that further EPA emissions regulations would phase out diesel.

But the political winds can change fast. While it remained to be seen what would happen to EPA’s Phase 3 GHG emissions regulations set to go into effect in 2027 under Trump, Daimler Truck North America in December announced a new $285 million capital investment into Detroit Diesel’s manufacturing campus in Michigan.

Diesel, indeed, continued to reign supreme as the fuel of choice, so shows the magazine’s annual survey of 10 school bus OEMs for the production cycle of Nov. 1, 2023, to Oct. 31, 2024, accounting for 22,889 school bus units manufactured. Gasoline came in second at 10,404 units. But 7,947 of those were Type A school buses with chassis provided by Ford or GM. Another 434 units not counted to that total were MFSABs.

Overall, the OEMs reported that school bus production decreased by over 2 percent during the 2023-2024 cycle, compared to the 17-plus percent increase in school bus output reported for 2022-2023. The slight dip in total numbers came in at 37,624 units, 2,928 of which were electric school buses.

Already the market share leader in propane, Blue Bird minimally benefited last year by competitors IC Bus and Thomas Built Buses no longer having an option to offer school districts and bus companies. Still, propane increased by 144 units to 1,958. Cummins announced last year it would not bring a propane version of its fuel agnostic engine to market, though it will offer gasoline starting next year. The survey data does not reflect any mass migration from one manufacturer to another in search of a propane option or to its gasoline relative.

Meanwhile, there was a significant jump in Type A production, as output spiked by 25 percent year-over year to 8,538 vehicles. One reason school districts embraced Type A over the past year could be the ongoing trend of finding a work-around to a lack of CDL school bus drivers. It could also reflect an easing of previous cutaway chassis shortages.

Overall, Type Cs continued to be the most specified school bus at 26,098 units, but that represented an over 10 percent decrease from 2022-2023 numbers. Type D increased 3,004 units from the previous figure of 2,601.

Editor’s Note:  Reprinted from the School Transportation News 2025 Buyer’s Guide.

Related: Update: Lion Electric Defaults on Credit Repayment, Says It is Avoiding Bankruptcy
Related: Electric School Bus Manufacturing Included in Nearly $2B Federal Energy Grant
Related: (STN Podcast E149) Don’t Discount Diesel: EV Nuances & School Bus Energy Choices

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The international biofuels industry has found an unlikely ally in the waste management sector. A heightened global urgency to reduce greenhouse gas emissions (GHGs) is incentivizing renewable fuels production like never before, but the International Energy Agency (IEA) recently warned of an impending feedstock shortage for biodiesel, renewable diesel and biojet (aviation fuel) production, estimated …

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