EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0696*
HOUSE BILL 696
C5 2lr1832
HB 832/21 – ECM & ENT CF SB 948
By: Delegate Fraser–Hidalgo Delegates Fraser–Hidalgo, Amprey, Barve, Boyce,
Brooks, Carey, Charkoudian, Fennell, Foley, Harrison, Healey, Holmes,
Jackson, Jalisi, Lehman, Lierman, Love, Prettyman, Queen, Rogers, Ruth,
Stein, Stewart, Terrasa, Turner, Valderrama, Walker, Watson, and Wells
Introduced and read first time: January 31, 2022
Assigned to: Economic Matters and Environment and Transportation
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 10, 2022
CHAPTER ______
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 2 HOUSE BILL 696
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 1
INDICATED. 2
(2) “ELECTRIC SCHOOL BUS ” MEANS A SCHOOL BUS T HAT IS 3
POWERED EXCLUSIVELY BY AN ELECTRIC MOTOR THAT DRAWS ITS CURRENT FROM 4
RECHARGEABLE STORAGE BATTERIES THAT ARE R ECHARGED WITH ELECTR ICITY 5
FROM AN ELECTRIC VEH ICLE CHARGING STATIO N. 6
(3) “ELECTRIC SCHOOL BUS P ILOT PROGRAM ” MEANS A PILOT 7
PROGRAM CONDUCTED BY AN INVESTOR–OWNED ELECTRIC COMPA NY UNDER THIS 8
SECTION. 9
(4) “INCREMENTAL ADMINISTR ATIVE AND OPERATING COSTS” 10
MEANS THE AMOUNT BY WHICH THE COST OF AD MINISTERING AND OPER ATING AN 11
ELECTRIC SCHOOL BUS PROGRAM EXCEEDS THE COST OF ADMINISTERIN G AND 12
OPERATING A DIESEL S CHOOL BUS PROGRAM . 13
(5) “INCREMENTAL C OSTS OF PURCHASING A ND DEPLOYING 14
ELECTRIC SCHOOL BUSE S” MEANS THE AMOUNT BY WHICH THE COSTS OF 15
PURCHASING AND DEPLO YING ELECTRIC SCHOOL BUSES EXCEEDS THE CO STS OF 16
PURCHASING AND DEPLO YING DIESEL SCHOOL B USES. 17
(6) “INTERCONNECTION EQUIP MENT” MEANS A GROU P OF 18
COMPONENTS OR AN INT EGRATED SYSTEM THAT CONNECTS AN ELECTRIC VEHICLE 19
CHARGING STATION WIT H THE DISTRIBUTION S YSTEM OF AN INVESTOR –OWNED 20
ELECTRIC COMPANY . 21
(7) “INTERCONNECTION FACIL ITIES” MEANS FACILITIES REQ UIRED 22
BY AN INVESTOR –OWNED ELECTRIC COMP ANY TO ACCOMMODATE T HE 23
INTERCONNECTION OF A N ELECTRIC VEHICLE C HARGING STATION . 24
(8) “PARTICIPATING SCHOOL SYSTEM” MEANS A SCHOOL SYSTE M 25
LOCATED WITHIN AN IN VESTOR–OWNED ELECTRIC COMPA NY’S SERVICE TERRITORY 26
THAT: 27
(I) PARTICIPATES IN AN E LECTRIC SCHOO L BUS PILOT 28
PROGRAM UNDER AN AGR EEMENT BETWEEN ITS S CHOOL BOARD AND AN 29
INVESTOR–OWNED ELECTRIC COMPA NY; AND 30
(II) OWNS ITS SCHOOL BUSE S OR CONTRACTS WITH ANOTHER 31
ENTITY FOR SCHOOL BU S SERVICES. 32
(9) “PROGRAM COSTS ” MEANS: 33 HOUSE BILL 696 3
(I) ANY COSTS TO DEPLO Y APPROPRIATE ELECTR IC SCHOOL 1
BUS CHARGING INFRAST RUCTURE THAT ARE INC URRED BY AN INVESTOR –OWNED 2
ELECTRIC COMPANY IN IMPLEMENTING AN ELEC TRIC SCHOOL BUS PILO T 3
PROGRAM; AND 4
(II) REBATES PAID TO A PA RTICIPATING SCHOOL S YSTEM. 5
(10) “REBATE” MEANS AN INCENTIVE P ROVIDED BY AN 6
INVESTOR–OWNED ELECTRIC COMPA NY TO A PARTICIPATIN G SCHOOL SYSTEM THAT 7
IS EQUAL TO: 8
(I) THE INCREMENTAL COST S OF PURCHASING AND 9
DEPLOYING ELECTRIC S CHOOL BUSES TO PARTI CIPATING SCHOOL SYST EMS; AND 10
(II) THE INCREMENTAL ADMINISTRATIVE AND O PERATING 11
COSTS INCURRED BY A PARTICIPATING SCHOOL SYSTEM IN IMPLEMENTI NG ITS 12
ELECTRIC SCHOOL BUS PILOT PROGRAM . 13
(B) (1) THERE IS AN ELECTRIC SCHOOL BUS PILOT PRO GRAM. 14
(2) THE ELECTRIC SCHOOL B US PILOT PROGRAM SHA LL BE 15
IMPLEMENTED AND ADMI NISTERED BY THE COMMISSION AND SHALL OPERATE AS 16
PROVIDED IN THIS SEC TION. 17
(C) AN INVESTOR –OWNED ELECTRIC COMPA NY MAY APPLY TO THE 18
COMMISSION TO IMPLEME NT AN ELECTRIC SCHOO L BUS PILOT PROGRAM IF THE 19
PILOT PROGRAM IS STR UCTURED TO: 20
(1) COMMENCE ON OR BEFORE OCTOBER 1, 2024; 21
(2) PROVIDE FOR THE DEPL OYMENT OF NOT FEWER THAN 25 22
ELECTRIC SCHOOL BUSE S; 23
(3) PROVIDE FOR ELECTRIC SCHOOL BUS REBATES T O 24
PARTICIPATING SCHOOL SYSTEMS; 25
(4) LIMIT TOTAL REBATES TO $50,000,000; 26
(5) ALLOW THE INVESTOR –OWNED ELECTRIC COMPA NY TO USE THE 27
STORAGE BATTERIES OF THE ELECTRIC SCHOOL BUSES TO ACCESS THE STORED 28
ELECTRICITY THROUGH VEHICLE–TO–GRID TECHNOLOGY : 29
4 HOUSE BILL 696
(I) EXCEPT AS PROVIDED I N ITEM (6) OF THIS SUBSECTION , 1
WITHOUT ADDITIONAL C OMPENSATION TO THE SCHOOL SYSTEM FO R THE 2
ELECTRICITY; AND 3
(II) AT TIMES WHEN THE PA RTICIPATING SCHOOL S YSTEM 4
DETERMINES THAT THE SCHOOL BUSES ARE NOT NEEDED TO TRANSPORT 5
STUDENTS; 6
(6) ENSURE THAT IF THE I NVESTOR–OWNED UTILITY USES 7
ELECTRICITY THAT A P ARTICIPATING SCHOOL SYSTEM PROVID ES TO CHARGE AN 8
ELECTRIC SCHOOL BUS BATTERY, THE INVESTOR –OWNED UTILITY REPLAC ES THAT 9
ELECTRICITY AT NO CO ST TO THE PARTICIPAT ING SCHOOL SYSTEM ; 10
(7) PROVIDE FOR THE SELE CTION OF SCHOOL SYST EMS THAT APPLY 11
TO PARTICIPATE IN TH E PILOT PROGRAM ON T HE BASIS OF APPROPRI ATE FACTORS 12
DETERMINED BY THE IN VESTOR–OWNED ELECTRIC COMPA NY WITH THE APPROVAL 13
OF THE COMMISSION, INCLUDING THE LOCATI ONAL BENEFITS THAT T HE STORAGE 14
BATTERIES OF SCHOOL BUSES MAY BRING TO T HE INVESTOR –OWNED ELECTRIC 15
COMPANY; 16
(8) CONSIDER, IN DETERMINING THE A PPROPRIATE FACTORS U NDER 17
ITEM (7) OF THIS SUBSECTION , THE HEALTH AND ECONO MIC EFFECTS ON 18
LOW–INCOME AND MINORITY COMMUNITIES ; 19
(9) PROVIDE AND INSTALL THE INTERCONNECTION EQUIPMENT AND 20
INTERCONNECTION FACI LITIES FOR ELECTRIC VEHICLE CHARGING STA TIONS AND 21
TRAIN SCHOOL PERSONN EL IN THE PROPER USE OF THE EQUIPMENT AND 22
FACILITIES; 23
(10) EQUIP EACH ELECTRONI C SCHOOL BUS WITH LA P AND SHOULDER 24
BELTS IN ACCORDANCE WITH RECOMMENDATIONS FROM THE NATIONAL 25
TRANSPORTATION SAFETY BOARD; AND 26
(11) PROVIDE THE SCHOOL B OARD WITH ADEQUATE T RAINING AND 27
EXPERTISE TO OPERATE ABLY ELECTRIC SCHOOL BUSES, ELECTRIC VEHICLE 28
CHARGING STATIONS , AND ASSOCIATE D INFRASTRUCTURE . 29
(D) A PARTICIPATING SCHOOL SYSTEM SHALL : 30
(1) WHEN DEPLOYING ELECT RIC SCHOOL BUSES , CONSIDER 31
CRITERIA THAT BENEFI T STUDENTS WHO ARE E LIGIBLE FOR FREE AND 32
REDUCED PRICE MEALS ; AND 33
HOUSE BILL 696 5
(2) BEFORE THE DELIVERY OF ELECTRIC SCHOOL B USES, DEVELOP A 1
PLAN FOR TRAINING AN D RETAINING ANY SCHO OL SYSTEM EMPLOYEE A FFECTED BY 2
THE ELECTRIC SCHOOL BUS PILOT PROGRAM . 3
(E) (1) SUBJECT TO THE COMMISSION’S APPROVAL , AN 4
INVESTOR–OWNED ELECTRIC COMPA NY MAY RECOVER ALL R EASONABLE AND 5
PRUDENT PROGRAM COST S INCURRED UNDER AN EL ECTRIC SCHOOL BUS PI LOT 6
PROGRAM THROUGH A RA TE APPLICATION TO BE REVIEWED AND APPROVE D BY THE 7
COMMISSION. 8
(2) A RATE APPLICATION UND ER THIS SUBSECTION S HALL INCLUDE 9
CONFORMING CHANGES T O THE PARTICIPATING INVESTOR–OWNED ELECTRIC 10
COMPANY’S APPLICABLE RATE SC HEDULES. 11
(3) SUBJECT TO THE COMMISSION’S APPROVAL , THE ELECTRIC 12
SCHOOL BUS PILOT PRO GRAM SHALL BECOME A REGULAR RATE SCHEDUL E OF THE 13
PARTICIPATING INVEST OR–OWNED ELECTRIC COMPA NY. 14
(F) SUBJECT TO THE COMMISSION’S APPROVAL , AN INVESTOR–OWNED 15
ELECTRIC COMPANY MAY ESTABLISH A PILOT TA RIFF OR RATE TO PROV IDE SERVICE 16
TO AN ELECTRIC SCHOO L BUS. 17
(G) AN INVESTOR –OWNED ELECTRIC COMPA NY THAT APPLIES TO 18
IMPLEMENT AN ELECTRI C SCHOOL BUS PILOT P ROGRAM SHALL PROVIDE TO THE 19
COMMISSION ANY IN FORMATION, DATA, AND ANALYSIS THAT TH E COMMISSION 20
REQUIRES. 21
(H) THE COMMISSION SHALL APPR OVE, DENY, OR APPROVE WITH 22
MODIFICATIONS AN INV ESTOR–OWNED ELECTRIC COMPA NY’S APPLICATION TO 23
IMPLEMENT AN ELECTRI C SCHOOL BUS PILOT P ROGRAM. 24
(I) (1) AN INVESTOR–OWNED ELECTRIC COMPA NY THAT ESTABLISHES 25
AN ELECTRIC SCHOOL B US PILOT PROGRAM AUT HORIZED BY THIS SECT ION SHALL, 26
IN CONSULTATION WITH EACH PARTICIPATING S CHOOL SYSTEM , BY FEBRUARY 1, 27
2024 2025, AND EACH YEAR THEREA FTER FOR THE DURATIO N OF THE PILOT 28
PROGRAM, REPORT ON THE STATUS OF THE PILOT PROGRAM TO THE GOVERNOR, 29
THE COMMISSION, AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE 30
GOVERNMENT ARTICLE, THE HOUSE ECONOMIC MATTERS COMMITTEE AND THE 31
SENATE FINANCE COMMITTEE. 32
(2) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS 33
SUBSECTION SHALL INC LUDE: 34
6 HOUSE BILL 696
(I) AN EVALUATION OF THE ENVIRONMENTAL AND HE ALTH 1
BENEFITS OF THE PILO T PROGRAM; AND 2
(II) THE FINANCIAL COSTS AND BENEFITS OF IMPL EMENTING 3
THE PILOT PROGRAM TO THE PARTICIPATING SC HOOL SYSTEM AND THE 4
INVESTOR–OWNED UTILITY , INCLUDING: 5
1. THE DEPLOYMENT , OPERATION, AND MAINTENANCE 6
OF THE ELECTRIC SCHO OL BUSES; AND 7
2. THE USE OF VEHICLE –TO–GRID TECHNOLOGY . 8
(J) THE INITIAL DURATION OF AN ELECTRIC SCHOO L BUS PILOT PROGRAM 9
SHALL BE AT LEAST 3 YEARS AND MAY NOT EX CEED 5 YEARS. 10
(K) ON THE REQUEST OF AN INVESTOR–OWNED ELECTRIC COMPA NY, THE 11
COMMISSION MAY AUTHOR IZE AN EXPANSION OF THE SCOPE, DEPLOYMENT , 12
PROGRAM COSTS , AND DURATION OF THE ELECTRIC SCHOOL BUS PILOT PROGRAM . 13
SECTION 2. AND BE IT FURTHER ENACTED, That the General Assembly 14
encourages electric school bus pilot program applicants to seek any federal funds that may 15
be available to the applicants, including funds available under the Infrastructure and 16
Investment Jobs Act. 17
SECTION 3. AND BE IT FURTHER ENACTED, That, where feasible, the General 18
Assembly encourages electric school bus pilot program applicants to produce or procure 19
electricity generated by renewable resources to power electric school bus charging 20
infrastructure. 21
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June 22
1, 2022. 23
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.