County to use VW settlement funds to purchase island’s first electric buses

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Passengers board the Hele-On bus to Hilo on Luhia Street in Kailua-Kona in this Jan. 4, 2022, file photo. Hawaii County is set to purchase its first battery electric buses as the Mass Transit Agency works to replace aging vehicles in the Hele-On fleet. (Laura Ruminski/West Hawaii Today)
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Hawaii County is set to purchase its first battery electric buses as the Mass Transit Agency works to replace aging vehicles in the Hele-On fleet.

The five, 35-foot buses will be acquired using money the county received from the 2016 Volkswagen settlement combined with its portion of a federal Low or No Emissions Vehicle grant the state received in 2022 totaling over $23 million.

The $1.765 million in settlement funding, which comes through the State of Hawaii Energy Office, and is part of approximately $10 million the state received from a 2016 multi-state settlement with the automaker involving claims that the car manufacturer violated state consumer protection laws prohibiting unfair or deceptive trade practices.

The funds will be combined with monies the county received via the Low or No Emissions Vehicle grant program, passed through the state Department of Transportation, to cover the purchase, said Mass Transit Administrator and General Manager John Andoh. Grants will cover the entire purchase, though the county has to match 20% of the federal grant monies used.

“We’re out to bid for those buses now,” he said, noting the bid would also include associated chargers, training and support equipment, said Andoh. He estimated each bus would cost around $900,000, but refrained from providing a total amid the procurement process.

The Hawaii County Council Committee on Finance will take up Resolution 58 and Bill 25 to accept the Volkswagen settlement funding at its meeting Tuesday at the West Hawaii Civic Center.

Once ordered, the buses take about a year to a year and a half, depending on “factory availability and demand” to deliver, according to Andoh. In the meantime, he said the county is currently working with a vendor to construct a network of charging stations at various locations around the island to accommodate the new battery electric buses — and future ones to come.

“We’re replacing the entire Hele-On fleet so that we will have a mix of battery electric, hydrogen, diesel hybrid,” said Andoh of future plans. “Hopefully by 2035 we’ll be able to replace the last of the diesel and diesel hybrid electric with the battery electric or hydrogen buses.”

Tuesday’s meeting can be viewed via livestream at hawaiicounty.gov. Video conferencing of Tuesday’s meeting will be available at Hilo Council Chambers. A public attendance courtesy site will be open at the Pahoa Council Office, and testimony can also be submitted via Zoom. Written testimony, though late due to the Presidents’ Day holiday, can be submitted via email to counciltestimony@hawaiicounty.gov, fax to (808) 961-8912 or mail to the County Clerk’s Office at 25 Aupuni St., Hilo, HI 96720.

Email Chelsea Jensen at cjensen@westhawaiitoday.com.