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Transit buses contribute a meager amount to the U.S. criteria pollutant and greenhouse gas (GHG) inventory, but they attract a lot of attention from the public and from local government, due to their nature of operation. Transit bus fleets are often employed for the introduction of advanced heavy-duty vehicle technology and the formulation of new performance models. Emissions and fuel consumption data, gained using a chassis dynamometer, are often used to evaluate performance of these buses. However, the effect of road grade on fuel consumption and emissions most often is not accounted for in chassis dynamometer characterization. Grade effect on transit buses' fuel consumption was investigated using the road-load equation. It was observed that two parameters, including the type of terrain that buses traverse and the percentage of grade for that terrain, needed to be determined for this investigation.