Montreal, May 21, 2025– Quebec is now in reverse gear for electrifying school transportation. As Lion Electric, the province’s main supplier of electric school buses (ESBs), narrowly avoids liquidation, the government has confirmed it will no longer require the purchase of ESBs under its Programme d’électrification du transport scolaire (PETS).
Quebec Abandons Leadership in Electrification
The Canadian Electric School Bus Alliance (CESBA), coordinated by Équiterre and Green Communities Canada, strongly condemns the Legault government’s decision to suspend the ESB purchase requirement–a cornerstone policy introduced in 2021.
This reversal jeopardizes children’s health, slows progress on greenhouse gas reductions, and undermines local innovation by reopening the door to diesel buses manufactured in the United States.
“Quebec, once proud to lead in school transportation electrification, is now reverting to the same unregulated, unambitious approach we see in Ontario,” says Henri Chevalier, Sustainable Mobility Advisor at Equiterre and Co-Coordinator of CESBA.
CESBA does, however, acknowledge the renewal and enhancement of PETS–a critical measure to help offset the high cost of ESBs.
A Monopoly That Slows the Transition
CESBA is also concerned by the government’s decision to maintain the Canadian assembly requirement in PETS, which effectively grants Lion Electric a near-monopoly, despite the company’s current inability to meet demand. With workforce reductions and ongoing delivery delays, the risk of service disruptions this fall is very real. In 2023-2024, school transportation service interruptions averaged 137 per day, leaving 5,500 students without transportation.
In response to these delays, the government has already extended the legal lifespan of diesel buses from 12 to 14 years. Approximately 800 buses will need to be replaced this fall. Regardless of whether these are replaced with electric or diesel, there is a high risk of delivery delays.
“If we’ve reached this point, it’s because the bulk of demand was funneled to a single manufacturer whose viability partly depended on delayed federal subsidies. We put all our eggs in one basket, and now we’re facing the consequences,” adds Chevalier.
Solutions Within Reach
CESBA urges the Quebec government to:
Reinstate the ESB purchase requirement or, at minimum, introduce a phased quota for new school bus acquisitions, starting at 50 per cent in 2026 and increasing to 100 per cent by 2030.
Relax temporarily the 100 per cent Canadian assembly requirement to allow other manufacturers to qualify.
Develop a coordinated, pan-Canadian green industry strategy to build a resilient ESB supply chain, diversify the market, avoid monopolies like the one created around Lion Electric, and position ESBs as a driver of economic, social, and environmental development.
Tie all public funding for manufacturers to clear performance, socio-economic, and environmental criteria to ensure public investments deliver long-term collective benefits.
About CESBA
The Canadian Electric School Bus Alliance (CESBA) is a public voice in favour of accelerating the uptake of electric school buses. CESBA is an initiative led by Green Communities Canada and Équiterre that brings together a range of provincial and federal stakeholders in the school transportation sector, including school boards, environmental organizations, and bus manufacturers. Its goal is to advocate for policies that accelerate the transition from fossil fuel-powered school buses to electric school buses, in line with Canada’s climate objectives. Learn more at eschoolbusalliance.ca
Équiterre's offices are located on Indigenous lands that have not been ceded by treaty, which we now call Montreal and Quebec City. We recognize that Indigenous peoples have protected their territories since immemorial times and have used their traditional knowledge to guard the lands and waters. We are grateful to live on these lands and are committed to continuing our efforts to protect them. Read more »
