Staff Report #2 – Climate Action Program Update

Staff Report #2

August 31, 2026

To All Commissioners

Re: Climate Action Program Update

Recommendation

That the Commission DIRECT Administration to forward this report to civic Administration for inclusion in the next City of London Climate Emergency Action Plan update.

Background

The City of London currently creates an annual update report on climate actions within London and at the City. The report is known as the Climate Emergency Action Plan (CEAP) Update. Throughout the year, Municipal Council is updated on specific projects and programs that have direct relationship with the CEAP. In some cases, City staff highlight climate action projects and programs that are in place or proposed at agencies, boards, and commissions (ABCs) of the City.

To document actions being undertaken and to encourage more climate actions that meet the needs of agencies, boards and commissions, Council has requested that ABCs create their own Climate Action Plan (CAP). While a specific Climate Action Plan has not been prepared for Commission approval, the remainder of this report sets out the elements and framework that will be included in a future plan which will be prepared to coincide with the next multi-year budget submission, noting funding sources will need to be identified to undertake most of the initiatives. As set out in the report recommendation, this report will be shared with civic administration to be included in their update to the City of London CEAP.

The London Transit Commission is committed to sustainability and environmental stewardship, and targets relating to these goals and progress against same has historically been incorporated into London Transit Business Plans versus a standalone document.

Public transit in and of itself is inherently green given that buses can move significant numbers of riders along a corridor as compared to those same riders utilizing personal vehicles. In addition to the sustainability and environmental benefits that public transit provides to a community, there are numerous additional community benefits resulting from a robust public transit service, including but not limited to:

  • Improvements in public safety
  • Increased economic returns on tax dollar investments
  • Time savings for all community members
  • Improved mobility and social equity
  • Improved health outcomes for riders

Initiatives in the Business Plan balance the need for innovation with the need to grow the overall transit system in order to ensure that maximum community benefits are attained through every dollar of investment in public transit services.

Climate related objectives included in the current Business Plan include:

  • Identification and implementation of strategies to reduce greenhouse gas (GHG) emissions associated with LTC operations;
  • Enhanced levels of public transit services provided to the community to grow the number of Londoners with reliable access to public transit;
  • Enhancement of LTC’s resilience to climate change impacts;
  • Alignment of LTC’s operations with City of London, national, and international climate goals.

The three primary areas with the potential to significantly mitigate negative environmental impacts associated with LTC operations are the facilities, the fleet and the level of service, each of which is expanded upon below.

Facilities

With respect to facilities, the LTC operates out of the 450 Highbury Avenue facility and the 3508 Wonderland Road facility. The 450 Highbury Avenue facility is scheduled to be demolished and rebuilt in the near term, and consideration will be given to the incorporation of energy efficiencies in the new facility design. Investments in the past have been made to the Highbury facility to improve efficiencies including but not limited to upgrades to LED lighting throughout the facility, installation of high-speed zip doors at bus entrances and exits, motion activated lighting and large volume fans to improve air flow and reduce heating costs.

The 3508 Wonderland facility is approximately 16 years old and was built to include numerous efficiency measures including but not limited to high-speed doors, water conservation and storage for bus wash, LED lighting, motion activated lighting, in floor heating and building automation systems and rooftop solar panels.

Funding for improvements at both facilities is included in the Commission’s Capital Budget program as a life-cycle maintenance project, noting each year improvements are prioritized based on the annual budget allocation for the program.

Fleet

The LTC bus fleet is currently comprised of 253 clean-diesel powered buses. Transitioning these vehicles to an alternative green powertrain (battery electric or hydrogen) provides for significant potential to reduce GHG’s associated with transit operations, but also represents significant costs for which funding sources have not yet been identified.

In 2021, London Transit contracted with the Canadian Urban Transit Research and Innovation Consortium to complete a Zero Emission Bus Fleet Implementation and Rollout Plan which was tabled with the Commission in 2022. Given the significant and unfunded costs associated with the plan implementation, coupled with the ongoing issues being experienced by transit systems who had begun to test electric buses in service, the decision was made to move forward with an Electric Bus Pilot Program versus beginning the wholesale fleet transition envisioned in the Plan.

London Transit participated in a joint procurement for a turn-key electric bus pilot (buses, charging infrastructure and civic works) which has now closed and bids are being evaluated. It is anticipated that a contract award and confirmation of order will occur in early 2027, and based on current delivery schedules, equipment will be delivered mid 2028. This pilot program will be key to informing the path forward for fleet transition, noting the manner in which electric buses perform in the London context will be a key input into future modelling. In addition, pilot programs for hydrogen fuel cell buses are taking place at other Ontario transit systems, and performance of these buses will also be a key input into future modelling for London’s fleet.

Funding with respect to a wholesale fleet transition is significant. During the preparation and submission of the current multi-year budget program, the Commission’s Capital Budget program for 2024-2033 included an estimated $188 million in incremental costs associated with the transition of the fleet from clean diesel to battery electric buses over the 10-year horizon. These program costs were shared with civic Administration; however, the Commission did not recommend this program for submission to the budget process. The Commission did recommend the Zero Emission Bus Pilot Program to that process, and that project was approved, noting at the time of approval, it was expected that Federal funding would cover 50% of the cost. Since that time, the Zero Emission Transit Fund, which was the anticipated source of federal funding has been cancelled. LTC and civic Administration continue to work to identify funding sources for this program.

The estimated $188 million in fleet transition costs came from the Zero Emission Fleet Implementation and Rollout Plan that was prepared in 2022. This plan will require an update which is based on current experiential data on the performance of this technology in the field, noting at the time the 2022 report was prepared, manufacturer’s estimates were relied upon for modelling and those estimates have not been experienced at transit systems that have these buses in service. Additionally, the bus manufacturing industry has been significantly impacted by tariffs, and the cost of buses has increased significantly since the 2022 report. It is anticipated that a new plan will need to be prepared subsequent to the launch of the electric bus pilot program and experience with the technology locally. This updated plan will provide for a better estimate of the costs associated with transitioning the transit fleet going forward.

Service Levels

Continuing to grow the levels of public transit services in London, making it a viable option for more Londoners, will increase the ridership on the transit service and decrease reliance on private vehicles which has the potential for significant GHG reductions in the community. Commitment to continued improvement in the public transit system will be required in order to realize the ridership gains associated with better access to public transit service, and as such, needs to be viewed as a long-term commitment.

As set out in Staff Report #8, dated August 31, 2026, in addition to the growth hours included in the base budget for 2027, Administration is recommending an assessment growth business case that will see service expanded into the Hyde Park, Fox Hollow, North Lambeth and South Byron areas.

Looking Forward

As set out earlier in this report, climate actions relating to the operation of public transit services have historically been included in the Commission Business Plan. The current Business Plan covers the period 2024-2027. As part of the next multi-year budget preparation, and subsequent updates of the Commission Business Plan and supporting Service Plans, a Climate Action Plan will be prepared which will set out in greater detail targets relating to climate actions that can be accomplished within the approved budgets for the period 2028-2031. All of these plans will be subject to public consultation and Commission approval prior to being finalized. This report will be shared with civic Administration for inclusion in any updates to the City of London CEAP in the interim.

Recommended by:

David Butler, Director of Operations – Conventional

Shawn Wilson, Director of Operations – Specialized

Craig Morneau, Director of Fleet & Facilities

Mike Gregor, Director of Finance

Joanne Galloway, Director of Human Resources

Katie Burns, Director of Planning

Concurred in by:

Kelly S. Paleczny, General Manager