Reducing transit fleet emissions through vehicle retrofits, replacements, and usage changes over multiple time periods

Bus transit is often promoted as a green form of transportation, but surprisingly little research has been done on how to run transit systems in a green manner. Both vehicle task assignment and purchase models are generally constructed to minimize financial costs. Integrating vehicle task assignment with purchase decisions is made challenging by the different time scales involved. An integer programming approach is used to combine vehicle purchase, retrofit and aggregated task assignment decisions. The formulation is designed to operate in sequence with traditional vehicle task assignment models, to add emissions and long term financial cost elements to the objective, while maintaining computational tractability and feasible input data requirements. In a case study, a transit agency saves money in the long term by using stimulus money to buy CNG infrastructure instead of purchasing only new buses. Carbon prices up to $400/(ton CO2 equivalent) do not change vehicle purchase decisions, but higher carbon prices can cause more diesel hybrid purchases, at a high marginal cost. Although the motivation and numerical case study are from the US transit industry, the model is formulated to be widely applicable to green fleet management in multiple contexts.