San Francisco delays its Muni electric bus mandate by 5 years over a budget crisis

The San Francisco Municipal Transportation Agency voted to seek a state exemption from a rule requiring 378 battery electric buses, and will buy 378 diesel hybrid buses instead, citing an operating deficit set to reach 434 million dollars within 5 years.

3781battery electric buses California required Muni to buy, the same number of diesel hybrid buses SFMTA ordered instead
307 million1dollars, the Muni transit agency operating deficit this year, projected to reach 434 million dollars within 5 years
452 million1dollars in savings the mandate delay is projected to produce, more than half of it from not building electric bus charging equipment at 2 Muni depots

A budget crisis delays San Francisco Muni electric buses

San Francisco is delaying its Muni electric bus mandate because of a budget crisis, not a technology problem. The San Francisco Municipal Transportation Agency, known as SFMTA and running the Muni transit system, voted on September 1, 2026, to ask California for a financial hardship exemption. The exemption is a real, standing category under the Innovative Clean Transit rule, a California requirement adopted in December 2018 that transit agencies gradually replace diesel buses with zero emission buses, ones that produce no tailpipe exhaust. That detail is confirmed directly on the regulator own exemption page, not assumed from news coverage of the vote. If California approves the request, the exemption would delay a requirement to buy 378 battery electric buses by 5 years. SFMTA plans to buy 378 diesel hybrid buses instead, buses that burn diesel fuel but also carry a battery and an electric motor to cut fuel use, the same fleet size, a different engine.

The fleet size does not shrink, only the engine changes

The swap keeps the fleet the same size. California required 378 battery electric buses. SFMTA plans to buy 378 diesel hybrid buses in their place, the same count on both sides. The same 2031 purchase plan also includes 100 gasoline powered paratransit vans, a separate vehicle class that carries passengers with disabilities on demand, not part of the regular Muni bus fleet.

Vehicles in San Francisco 2031 bus purchase planBuses in the mandate delay swapSeparate vehicle class in the same plan
0100200300400378Electric buses,mandated378Diesel hybrid buses,ordered instead100Gasoline paratransit,vansvehicles

The bus swap keeps the same fleet size, 378 for 378, only the engine changes. The paratransit vans are a separate vehicle class in the same purchase plan, not additional buses.

Source 1.

Show the numbers
Electric buses, mandated378
Diesel hybrid buses, ordered instead378
Gasoline paratransit, vans100

Why SFMTA says it needs the delay

SFMTA points to its own finances. The agency operating deficit, the gap between what it spends running Muni each year and what it collects in fares, parking revenue and other funding, stands at 307 million dollars this year, a figure the agency own budget page confirms independently. SFMTA projects that gap will grow to 434 million dollars within 5 years, driven by rising labor costs and by fare and parking revenue that has not recovered since the pandemic, not by anything to do with the buses themselves. A separate SFMTA report on a different, smaller bus order found the deficit reaching 344 million dollars by fiscal year 2027 to 2028, a point on the same rising path.

SFMTA operating deficit growing over 5 years
0150300450307This year344Fiscal year,2027 to 2028434Within 5,yearsmillions of dollars a year

The fiscal year 2027 to 2028 figure comes from a separate SFMTA report, source 4. The current year figure is independently confirmed by the agency own budget page, source 5.

Source 1.

Show the numbers
This year307
Fiscal year, 2027 to 2028344
Within 5, years434

SFMTA expects the delay itself to save money. It projects 452 million dollars in savings, more than half of it, 229 million dollars, from not having to build electric bus charging equipment at 2 Muni depots. The agency frames the delay as a pause, not a reversal, and Bhavin Khatri, manager of Muni zero emissions program, said so directly.

This request does not change our commitment to achieving a full zero emission fleet.

Bhavin Khatri, manager of Muni zero emissions program. Source 1.

An alternative some officials floated

Khatri said the exemption gives the agency flexibility to keep advancing toward the zero emission goal in a financially responsible way. Before the vote, SFMTA Director Steve Heminger raised expanding the Muni electric trolleybus network, buses that draw power from overhead wires rather than a battery, as a cheaper path to zero emissions. Director of Transportation Julie Kirschbaum said the agency could revisit trolley expansion only after overhauling the Potrero yard, which would become a hub for the trolleybuses. San Francisco already plans to spend 5.1 billion dollars on electrification infrastructure over 20 years.

Sources

  1. Muni is too broke to use more eco friendly buses. Garrett Leahy, The San Francisco Standard. Published 2026-09-14. Accessed 2026-09-15.
  2. Innovative Clean Transit. California Air Resources Board. Accessed 2026-09-15.
  3. ICT Regulation Exemptions. California Air Resources Board. Published 2026-04-23. Accessed 2026-09-15.
  4. SFMTA begins two year journey to introduce new Muni buses. James Salazar, The San Francisco Examiner. Published 2026-09-14. Accessed 2026-09-15.
  5. Bridging Our Budget Gap to Save Muni. San Francisco Municipal Transportation Agency. Accessed 2026-09-15.

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