I-Like-To-Bike, I honestly don't know what percentages come from where, but from what I understand, Avista is pretty good relative to the nation when it comes to environmental impact.
Cooker, I think when they put "Zero Emissions" on the bus, it means the bus is not emitting things. Pretty simple.
No one is arguing power comes from nowhere, but something tells me even a coal plant is more efficient (and, it follows, less detrimental to the environment) than thousands of tiny generators. Also, battery/capacitor to motor systems are 90% efficient(1), gasoline engines at best 30%(2) (I'll even put footnotes for that!).
The most obvious benefit of the bus is not environmental or economic; rather, it's simply less unpleasant by a good margin. I'm not trading my bicycle in for a Leaf anytime soon!
1:
Electrical Motor Efficiency
2:
Fuel Economy: Where the Energy Goes