EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0696*
HOUSE BILL 696
C5 2lr1832
HB 832/21 – ECM & ENT
By: Delegate Fraser–Hidalgo
Introduced and read first time: January 31, 2022
Assigned to: Economic Matters and Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Public Utilities – Electric School Bus Pilot Program 2
FOR the purpose of establishing an electric school bus pilot program; requiring the Public 3
Service Commission to implement and administer the pilot program; authorizing 4
investor–owned electric companies to apply to the Commission to implement an 5
electric school bus pilot program with a participating school system if the pilot 6
program meets certain standards; authorizing investor–owned electric companies to 7
recover certain costs under the pilot program, subject to the approval of the 8
Commission; and generally relating to the electric school bus pilot program. 9
BY adding to 10
Article – Public Utilities 11
Section 7–217 12
Annotated Code of Maryland 13
(2020 Replacement Volume and 2021 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Public Utilities 17
7–217. 18
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 19
INDICATED. 20
(2) “ELECTRIC SCHOOL BUS ” MEANS A SCHOOL BUS T HAT IS 21
POWERED EXCLUSIVELY BY AN ELECTRIC MOTOR THAT DRAWS ITS CURRE NT FROM 22
RECHARGEABL E STORAGE BATTERIES THAT ARE RECHARGED WITH E LECTRICITY 23
FROM AN ELECTRIC VEH ICLE CHARGING STATIO N. 24 2 HOUSE BILL 696
(3) “ELECTRIC SCHOOL BUS P ILOT PROGRAM ” MEANS A PILOT 1
PROGRAM CONDUCTED BY AN INVESTOR–OWNED ELECTRIC COMPA NY UNDER THIS 2
SECTION. 3
(4) “INCREMENTAL ADMI NISTRATIVE AND OPERA TING COSTS ” 4
MEANS THE AMOUNT BY WHICH THE COST OF AD MINISTERING AND OPER ATING AN 5
ELECTRIC SCHOOL BUS PROGRAM EXCEEDS THE COST OF ADMINISTERIN G AND 6
OPERATING A DIESEL S CHOOL BUS PROGRAM . 7
(5) “INCREMENTAL COSTS OF PURCHASING AND DEPLO YING 8
ELECTRIC SCHOOL BUSE S” MEANS THE AMOUNT BY WHICH THE COSTS OF 9
PURCHASING AND DEPLO YING ELECTRIC SCHOOL BUSES EXCEEDS THE CO STS OF 10
PURCHASING AND DEPLO YING DIESEL SCHOOL B USES. 11
(6) “INTERCONNECTION EQUIP MENT” MEANS A GROUP OF 12
COMPONENTS OR AN INT EGRATED SYSTEM THAT CONN ECTS AN ELECTRIC VEH ICLE 13
CHARGING STATION WIT H THE DISTRIBUTION S YSTEM OF AN INVESTOR–OWNED 14
ELECTRIC COMPANY . 15
(7) “INTERCONNECTION FACIL ITIES” MEANS FACILITIES REQ UIRED 16
BY AN INVESTOR–OWNED ELECTRIC COMPA NY TO ACCOMMODATE TH E 17
INTERCONNECTION OF A N ELECTRIC VEHICLE C HARGING STATION . 18
(8) “PARTICIPATING SCHOOL SYSTEM” MEANS A SCHOOL SYSTE M 19
LOCATED WITHIN AN IN VESTOR–OWNED ELECTRIC COMPA NY’S SERVICE TERRITORY 20
THAT: 21
(I) PARTICIPATES IN AN E LECTRIC SCHOOL BUS P ILOT 22
PROGRAM UNDER AN AGR EEMENT BETWEEN ITS S CHOOL BOARD AND AN 23
INVESTOR–OWNED ELECTRIC COMPA NY; AND 24
(II) OWNS ITS SCHOOL BUSE S OR CONTRACTS WITH ANOTHER 25
ENTITY FOR SCHOOL BU S SERVICES. 26
(9) “PROGRAM COSTS ” MEANS: 27
(I) ANY COSTS TO DEPLOY APPROPRIATE ELECTRIC SCHOOL 28
BUS CHARGING INFRAST RUCTURE THAT ARE INC URRED BY AN INVESTOR –OWNED 29
ELECTRIC COMPANY IN IMPLEMENTING AN ELEC TRIC SCHOOL BUS PILO T 30
PROGRAM; AND 31
(II) REBATES PAID TO A PA RTICIPATING SCHOOL S YSTEM. 32
HOUSE BILL 696 3
(10) “REBATE” MEANS AN INCENTIVE P ROVIDED BY AN 1
INVESTOR–OWNED ELECTRIC COMPA NY TO A PARTICIPATIN G SCHOOL SYSTEM THAT 2
IS EQUAL TO: 3
(I) THE INCREMENTAL COST S OF PURCHASING AND 4
DEPLOYING ELECTRIC S CHOOL BUSES TO PARTI CIPATING SCHOOL SYST EMS; AND 5
(II) THE INCREMENTAL ADMINISTRATIVE AND O PERATING 6
COSTS INCURRED BY A PARTICIPATING SCHOOL SYSTEM IN IMPLEMENTI NG ITS 7
ELECTRIC SCHOOL BUS PILOT PROGRAM . 8
(B) (1) THERE IS AN ELECTRIC SCHOOL BUS PILOT PRO GRAM. 9
(2) THE ELECTRIC SCHOOL B US PILOT PROGRAM SHALL BE 10
IMPLEMENTED AND ADMI NISTERED BY THE COMMISSION AND SHALL OPERATE AS 11
PROVIDED IN THIS SEC TION. 12
(C) AN INVESTOR –OWNED ELECTRIC COMPA NY MAY APPLY TO THE 13
COMMISSION TO IMPLEME NT AN ELECTRIC SCHOO L BUS PILOT PROGRAM IF THE 14
PILOT PROGRAM IS ST RUCTURED TO : 15
(1) COMMENCE ON OR BEFORE OCTOBER 1, 2024; 16
(2) PROVIDE FOR THE DEPL OYMENT OF NOT FEWER THAN 25 17
ELECTRIC SCHOOL BUSE S; 18
(3) PROVIDE FOR ELECTRIC SCHOOL BUS REBATES T O 19
PARTICIPATING SCHOOL SYSTEMS; 20
(4) LIMIT TOTAL REBATES TO $50,000,000; 21
(5) ALLOW THE INVESTOR –OWNED ELECTRIC COMPA NY TO USE THE 22
STORAGE BATTERIES OF THE ELECTRIC SCHOOL BUSES TO ACCESS THE STORED 23
ELECTRICITY THROUGH VEHICLE–TO–GRID TECHNOLOGY : 24
(I) EXCEPT AS PROVIDED I N ITEM (6) OF THIS SUBSECTION , 25
WITHOUT ADDITIONAL COMPENSAT ION TO THE SCHOOL SY STEM FOR THE 26
ELECTRICITY; AND 27
(II) AT TIMES WHEN THE PA RTICIPATING SCHOOL S YSTEM 28
DETERMINES THAT THE SCHOOL BUSES ARE NOT NEEDED TO TRANSPORT 29
STUDENTS; 30
(6) ENSURE THAT IF THE INVESTOR–OWNED UTILITY USES 31 4 HOUSE BILL 696
ELECTRICITY THAT A P ARTICIPATING SCHOOL SYSTEM PROVIDES TO C HARGE AN 1
ELECTRIC SCHOOL BUS BATTERY, THE INVESTOR –OWNED UTILITY REPLACES THAT 2
ELECTRICITY AT NO CO ST TO THE PARTICIPAT ING SCHOOL SYSTEM ; 3
(7) PROVIDE FOR THE SELE CTION OF SCHOOL SYST EMS THAT AP PLY 4
TO PARTICIPATE IN TH E PILOT PROGRAM ON T HE BASIS OF APPROPRI ATE FACTORS 5
DETERMINED BY THE IN VESTOR–OWNED ELECTRIC COMPA NY WITH THE APPROVAL 6
OF THE COMMISSION, INCLUDING THE LOCATI ONAL BENEFITS THAT T HE STORAGE 7
BATTERIES OF SCHOOL BUSES MAY BRING TO THE INVESTOR–OWNED ELECTRIC 8
COMPANY; 9
(8) CONSIDER, IN DETERMINING THE A PPROPRIATE FACTORS U NDER 10
ITEM (7) OF THIS SUBSECTION , THE HEALTH AND ECONO MIC EFFECTS ON 11
LOW–INCOME AND MINORITY COMMUNITIES ; 12
(9) PROVIDE AND INSTALL THE INTERCONNECTION EQUIPMENT AND 13
INTERCONNECTION FACI LITIES FOR ELECTRIC VEHICLE CHARGING STA TIONS AND 14
TRAIN SCHOOL PERSONN EL IN THE PROPER USE OF THE EQUIPMENT AND 15
FACILITIES; 16
(10) EQUIP EACH ELECTRONI C SCHOOL BUS WITH LA P AND SHOULDER 17
BELTS IN ACCORDANCE WITH RECOMMENDATIONS FROM THE NATIONAL 18
TRANSPORTATION SAFETY BOARD; AND 19
(11) PROVIDE THE SCHOOL B OARD WITH ADEQUATE T RAINING AND 20
EXPERTISE TO OPERATE ABLY ELECTRIC SCHOOL BUSE S, ELECTRIC VEHICLE 21
CHARGING STATIONS , AND ASSOCIATED INFRA STRUCTURE. 22
(D) A PARTICIPATING SCHOOL SYSTEM SHALL: 23
(1) WHEN DEPLOYING ELECT RIC SCHOOL BUSES , CONSIDER 24
CRITERIA THAT BENEFI T STUDENTS WHO ARE E LIGIBLE FOR FREE AND 25
REDUCED PRICE MEALS; AND 26
(2) BEFORE THE DELIVERY OF ELEC TRIC SCHOOL BUSES , DEVELOP A 27
PLAN FOR TRAINING AN D RETAINING ANY SCHO OL SYSTEM EMPLOYEE A FFECTED BY 28
THE ELECTRIC SCHOOL BUS PILOT PROGRAM . 29
(E) (1) SUBJECT TO THE COMMISSION’S APPROVAL , AN 30
INVESTOR–OWNED ELECTRIC COMPA NY MAY RECOVER ALL REASONABLE AND 31
PRUDENT PROGRAM COST S INCURRED UNDER AN ELECTRIC SCHOOL BUS PILOT 32
PROGRAM THROUGH A RA TE APPLICATION TO BE REVIEWED AND APPROVE D BY THE 33
COMMISSION. 34
HOUSE BILL 696 5
(2) A RATE APPLICATION UND ER THIS SUBSECTION S HALL INCLUDE 1
CONFORMING CHANGES T O THE PARTICIPATING INVEST OR–OWNED ELECTRIC 2
COMPANY’S APPLICABLE RATE SC HEDULES. 3
(3) SUBJECT TO THE COMMISSION’S APPROVAL , THE ELECTRIC 4
SCHOOL BUS PILOT PRO GRAM SHALL BECOME A REGULAR RATE SCHEDUL E OF THE 5
PARTICIPATING INVEST OR–OWNED ELECTRIC COMPA NY. 6
(F) SUBJECT TO THE COMMISSION’S APPROVAL , AN INVESTOR –OWNED 7
ELECTRIC COMPANY MAY ESTABLISH A PILOT TA RIFF OR RATE TO PROV IDE SERVICE 8
TO AN ELECTRIC SCHOO L BUS. 9
(G) AN INVESTOR –OWNED ELECTRIC COMPA NY THAT APPLIES TO 10
IMPLEMENT AN ELECTRI C SCHOOL BUS PILOT PROGRAM SHALL PROVID E TO THE 11
COMMISSION ANY INFORM ATION, DATA, AND ANALYSIS THAT TH E COMMISSION 12
REQUIRES. 13
(H) THE COMMISSION SHALL APPR OVE, DENY, OR APPROVE WITH 14
MODIFICATIONS AN INV ESTOR–OWNED ELECTRIC COMPA NY’S APPLICATION TO 15
IMPLEMENT AN ELECTRI C SCHOOL BUS PILOT PROGRAM . 16
(I) (1) AN INVESTOR–OWNED ELECTRIC COMPA NY THAT ESTABLISHES 17
AN ELECTRIC SCHOOL B US PILOT PROGRAM AUT HORIZED BY THIS SECT ION SHALL, 18
IN CONSULTATION WITH EACH PARTICIPATING S CHOOL SYSTEM , BY FEBRUARY 1, 19
2024, AND EACH YEAR THEREA FTER FOR THE DURATION OF THE PILOT PROGRAM , 20
REPORT ON THE STATUS OF THE PILOT PROGRAM TO THE GOVERNOR, THE 21
COMMISSION, AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 22
ARTICLE, THE HOUSE ECONOMIC MATTERS COMMITTEE AND THE SENATE 23
FINANCE COMMITTEE. 24
(2) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS 25
SUBSECTION SHALL INC LUDE: 26
(I) AN EVALUATION OF THE ENVIRONMENTAL AND HE ALTH 27
BENEFITS OF THE PILO T PROGRAM; AND 28
(II) THE FINANCIAL COSTS AND BENEFITS OF IMPL EMENTING 29
THE PILOT PROGRAM TO THE PARTIC IPATING SCHOOL SYSTE M AND THE 30
INVESTOR–OWNED UTILITY , INCLUDING: 31
1. THE DEPLOYMENT , OPERATION, AND MAINTENANCE 32
OF THE ELECTRIC SCHO OL BUSES; AND 33
2. THE USE OF VEHICLE –TO–GRID TECHNOLOGY . 34 6 HOUSE BILL 696
(J) THE INITIAL DURATION OF AN ELECTRIC SCHOO L BUS PILOT PROGRAM 1
SHALL BE AT LEAST 3 YEARS AND MAY NOT EX CEED 5 YEARS. 2
(K) ON THE REQUEST OF AN INVESTOR–OWNED ELECTRIC COMPA NY, THE 3
COMMISSION MAY AUTHOR IZE AN EXPANSION OF THE SCOPE, DEPLOYMENT , 4
PROGRAM COSTS , AND DURATION OF THE ELECTRIC SCHOOL BUS PILOT PROGRAM. 5
SECTION 2. AND BE IT FURTHER ENACTED, That the General Assembly 6
encourages electric school bus pilot program applicants to seek any federal funds that may 7
be available to the applicants, including funds available under the Infrastructure and 8
Investment Jobs Act. 9
SECTION 3. AND BE IT FURTHER ENACTED, That , where feasible, the General 10
Assembly encourages electric school bus pilot program applicants to produce or procure 11
electricity generated by renewable resources to power electric school bus charging 12
infrastructure. 13
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June 14
1, 2022. 15