Ocala greenlights $6.3 million electric bus deal

This is one of SunTran’s fleet vehicles. [File photo by Bruce Ackerman/Ocala Gazette]

The Ocala City Council has voted to buy five electric buses for its public transit fleet, with the $6.3 million cost being fully covered by federal .

The final costs, however, are likely to spike because of the looming tariffs imposed by the Trump administration on imported goods needed to build the buses.

The council on July 1 agreed to buy five 35-foot Low Floor Plus Battery Electric buses from Gillig, LLC, for SunTran, piggybacking on a Pinellas Suncoast Transit Authority contract.

Federal grants totaling $16 million will cover the costs with no local tax dollars being used.

An April 23 letter from Gillig Regional Sales Manager Butch Sibley to SunTran Transit Administrator Tom Duncan quotes a price of $1,252,900 per bus, with that number locked for 90 days and delivery in 18 to 20 months.

A contract modification, however, addressed potential tariff-related cost increases. Gillig noted in its letter that tariff-related cost hikes are expected and the company will be passing these increases along to the buyer.

“The current Administration has recently placed substantial tariffs on goods imported into the United States, and there have been indications that additional or different tariffs may be imposed,” the letter stated. “Although we are actively working with our suppliers to determine the financial impact these tariffs may ultimately have on our material and production costs, we believe in some cases (bus configuration) it will add a significant cost to the bus price, which Gillig is unable to absorb. As a valued partner, you have our commitment and assurance that we will do everything possible to minimize the impact as we navigate this developing situation. However, contract modifications and price adjustments will likely be necessary to offset any cost increases due to these tariffs.’’

Mayor Ben Marciano asked Duncan whether SunTran would continue using its gasoline-powered buses or transition entirely to electric. Duncan explained that SunTran would maintain a “blended fleet” of both electric and gas-powered buses.

Ocala Public Information Officer Greg Davis noted that electric buses have a higher upfront cost than diesel models.

“For comparison, on May 6, 2025, the council approved a 35-foot heavy-duty diesel bus for $717,172,” Davis said. The electric model costs $1,252,900, a difference of $535,728 per bus.

However, the electric buses feature a 686-kWh battery, 56% larger than the 440-kWh battery in comparable models, enabling up to 15 hours of daily operation without recharging, Davis said.

“This increased capacity extends the vehicle’s range and allows it to operate up to 15 hours a day without requiring a recharge. That is a critical factor for maintaining service reliability,” he continued.

“It is also worth noting that this purchase will be fully funded through a Federal Transit Administration grant under the Low or No Emission Vehicle Program. That means no local dollars are being used for these vehicles. The grant, totaling more than $16 million, also supports charging infrastructure, upgrades to the SunTran maintenance facility and future electric vehicle purchases aligned with our Transit Development Plan,” Davis said.

To learn more, go to ocalafl.gov/government/city-departments-i-z/suntran.