Canmore Approves $4.65-Million Hybrid Bus Purchase Despite Cheaper Diesel Option

Canmore will spend $4.65 million to replace three of its aging local transit buses with larger hybrid-electric models, choosing a lower-emission option despite a diesel alternative that would have cost roughly $1.28 million less and required no additional funding from the Town.

Council unanimously approved the purchase Tuesday, Aug. 18, following a lengthy discussion that centred on the higher upfront cost of the hybrids, their potential long-term operating savings and whether Canmore should pay a premium to further its climate goals.

The three 40-foot buses are expected to arrive in the first half of 2028 and will replace the 30-foot Vicinity buses primarily used on Canmore's local Roam Transit service. The existing buses won't immediately disappear and could continue to serve as spares for shorter periods.

For riders, the most noticeable difference will be size.

“The current 30-foot Vicinity buses carry 44 passengers, with 24 seated and 20 standing,” Zabrina Pendon, Canmore's manager of engineering, told council. “The proposed 40-foot hybrid electric buses carry 72, with 36 seated and 36 standing. That's roughly 64 percent more capacity on every trip.”

The larger buses come as Canmore's once-experimental local transit system has grown far beyond its original expectations.

When local service launched, the goal was to reach 100,000 annual rides within five years. By 2024, it had recorded 366,484 rides. The Town says local Route 5 surpassed 370,000 rides in 2025.

The buses being replaced are also becoming increasingly difficult to keep on the road. They operate about 18 hours a day, and their manufacturer, Vicinity, is no longer in business, making parts and service support harder to obtain.

“The fact that we're talking about buying bigger buses, that we're talking about buying hybrid buses is just another part of the massive success story that is Roam Transit,” Coun. Rob Murray said during the debate.

A $1.28-Million Decision

The decision was not simply about replacing buses.

Council was presented with two viable options: spend an estimated $4.65 million on three hybrid-electric buses or approximately $3.375 million on three conventional diesel buses.

The financial difference was significant.

“We did look at replacing the fleet with diesel buses instead,” said Chelsey Gibbons, Canmore's manager of finance. “Diesel would cost about $3.375 million, so roughly $1.28 million less.”

“At that price, the grant plus the existing replacement reserves would cover the full cost and no Town contribution would be required,” she added.

That prompted Coun. Jen Marran to propose an amendment that would have switched the purchase to diesel buses.

“I completely know that” there are emissions savings with hybrids, Marran said, adding that she also supported replacing the aging buses.

But, she said, “I'm having a hard time justifying the additional $1.28 million for the diesel hybrid buses versus the diesel option.”

Her amendment opened a broader debate about whether the sticker price told the whole story.

Councillors supporting hybrids pointed to lower fuel consumption, the suitability of hybrid technology for Canmore's stop-and-start routes and hills, the benefits of keeping Roam's fleet more standardized and the Town's existing commitments to reducing greenhouse gas emissions.

Administration's written report also notes that hybrid buses offer lower emissions and reduced fuel costs while retaining the range and flexibility of diesel vehicles.

But exactly how much the hybrids will save in fuel over their operating lives remains unclear.

When Murray asked whether administration had calculated when those savings would make up the $1.28-million difference, Gibbons said it had not received that modelling.

“We didn't receive any modeling with respect to potential savings on the fuel side,” she said. “So that would be information we would need to ask for from our partners.”

Marran's amendment was ultimately defeated, with Marran the only councillor voting in favour. She then supported the original hybrid purchase, saying she recognized the need to replace the buses and the tight timeline involved.

Who Pays for the Hybrids?

Canmore won't be responsible for the entire $4.65-million bill.

The federal Rural Transit Solutions Fund is expected to provide approximately $2.93 million, or 63 percent of the cost. Another $968,232 is expected to come from replacement reserves already held by the Bow Valley Regional Transit Services Commission.

That leaves $755,268, rounded to $756,000 for budgeting purposes, as Canmore's expected contribution.

Where that money will ultimately come from has not yet been decided.

Gibbons told council the Town's Integrated Transportation Management Reserve is projected to contain $4.7 million by the end of 2026 and “could be considered to fund the Town's contribution.”

That reserve is closely tied to Canmore's paid-parking program. The Town says parking fees, largely paid by visitors, are used to support sustainable transportation initiatives including fare-free local transit.

Council did not, however, approve taking the $756,000 from that reserve Tuesday. The funding source will return as part of the Town's 2027-28 budget process this fall.

There will also be a longer-term cost. Beginning in 2029, Canmore's annual contribution toward future bus replacement reserves is expected to increase by a net $23,000 because of the higher cost of the hybrid vehicles.

‘There's a Cost to That’

Mayor Sean Krausert acknowledged that council was deliberately choosing the more expensive option.

He argued that the decision had to be considered alongside expected operating savings, lower emissions and the recommendations of the people running the transit system.

“We need to make sure that we not only talk the talk but walk the walk,” Krausert said. “And there's a cost to that.”

“There is a cost to making the principled choice,” he added, before urging council to stick with the hybrid buses recommended by the transit commission.

The Town's Climate Emergency Action Plan calls for a 30 percent reduction in corporate and community emissions by 2030 and specifically identifies transitioning Roam toward an electric fleet as part of its low-carbon transit strategy.

There was also a practical reason council had to make the decision now. Bus manufacturing timelines are long enough that the purchase needs to be confirmed before the end of 2026 to get the vehicles into Canmore before summer 2028.

For Krausert, the need for bigger buses was itself evidence of how far the service has come.

He recalled skepticism when Canmore was pushing to establish local transit a decade ago, with some residents questioning whether people would use it.

“The fact that we need to have larger buses goes to show that we are continuing to grow in our usage of the system,” Krausert said.

“I'm so proud of our transit system,” he added, “serving the Town of Canmore residents really well.”

Council ultimately approved both the hybrid-bus purchase and a second motion directing administration to incorporate the $756,000 Town contribution and additional $23,000 annual replacement contribution into this fall's budget process. Both votes were unanimous.