LAWRENCE J. HOGAN, JR., Governor Ch. 570
– 1 –
Chapter 570
(House Bill 696)
AN ACT concerning
Public Utilities – Electric School Bus Pilot Program
FOR the purpose of establishing an electric school bus pilot program; requiring the Public
Service Commission to implement and administer the pilot program; authorizing
investor–owned electric companies to apply to the Commission to implement an
electric school bus pilot program with a participating school system if the pilot
program meets certain standards; authorizing investor–owned electric companies to
recover certain costs under the pilot program, subject to the approval of the
Commission; and generally relating to the electric school bus pilot program.
BY adding to
Article – Public Utilities
Section 7–217
Annotated Code of Maryland
(2020 Replacement Volume and 2021 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Public Utilities
7–217.
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “ELECTRIC SCHOOL BUS ” MEANS A SCHOOL BUS T HAT IS
POWERED EXCLUSIVELY BY AN ELECTRIC MOTOR THAT DRAWS ITS CURRENT FROM
RECHARGEABLE STORAGE BATTERIES THAT ARE R ECHARGED WITH ELECTR ICITY
FROM AN ELECTRIC VEH ICLE CHARGING STATIO N.
(3) “ELECTRIC SCHOOL BUS P ILOT PROGRAM ” MEANS A PILOT
PROGRAM CONDUCTED BY AN INVESTOR–OWNED ELECTRIC COMPA NY UNDER THIS
SECTION.
(4) “INCREMENTAL ADMINISTR ATIVE AND OPERATING COSTS”
MEANS THE AMOUNT BY WHICH THE COST OF AD MINISTERING AND OPER ATING AN
ELECTRIC SCHOOL BUS PROGRAM EXCEEDS THE COST OF ADMINISTERIN G AND
OPERATING A DIESEL S CHOOL BUS PROGRAM . Ch. 570 2022 LAWS OF MARYLAND
– 2 –
(5) “INCREMENTAL C OSTS OF PURCHASING A ND DEPLOYING
ELECTRIC SCHOOL BUSE S” MEANS THE AMOUNT BY WHICH THE COSTS OF
PURCHASING AND DEPLO YING ELECTRIC SCHOOL BUSES EXCEEDS EXCEED THE
COSTS OF PURCHASING AND DEPLOYING DIESEL SCHOOL BUSES .
(6) “INTERCONNECTION EQUIP MENT” MEANS A GROUP OF
COMPONENTS OR AN INT EGRATED SYSTEM THAT CONNECTS AN ELECTRIC VEHICLE
CHARGING STATION WIT H THE DISTRIBUTION S YSTEM OF AN INVESTOR –OWNED
ELECTRIC COMPANY .
(7) “INTERCONNECTION FACIL ITIES” MEANS FACILITIES REQ UIRED
BY AN INVESTOR –OWNED ELECTRIC COMPANY TO ACCOMMODATE THE
INTERCONNECTION OF A N ELECTRIC VEHICLE C HARGING STATION .
(8) “PARTICIPATING SCHOOL SYSTEM” MEANS A SCHOOL SYSTE M
LOCATED WITHIN AN IN VESTOR–OWNED ELECTRIC COMPA NY’S SERVICE TERRITORY
THAT:
(I) PARTICIPATES IN AN E LECTRIC SCHOOL BUS P ILOT
PROGRAM UNDER AN AGR EEMENT BETWEEN ITS S CHOOL BOARD AND AN
INVESTOR–OWNED ELECTRIC COMPA NY; AND
(II) OWNS ITS SCHOOL BUSE S OR CONTRACTS WITH ANOTHER
ENTITY FOR SCHOOL BU S SERVICES.
(9) “PROGRAM COSTS ” MEANS:
(I) ANY COSTS TO DEPLOY APPROPRIATE ELECTRIC SCHOOL
BUS CHARGING INFRAST RUCTURE THAT ARE INC URRED BY AN INVESTOR –OWNED
ELECTRIC COMPANY IN IMPLEMENTING AN ELEC TRIC SCHOOL BUS PILO T
PROGRAM; AND
(II) REBATES PAID TO A PA RTICIPATING SCHOOL S YSTEM.
(10) “REBATE” MEANS AN INCENTIVE P ROVIDED BY AN
INVESTOR–OWNED ELECTRIC COMPA NY TO A PARTICIPATIN G SCHOOL SYSTEM THAT
IS EQUAL TO:
(I) THE DEMONSTRABLE INCREMENTAL COSTS OF
PURCHASING AND DEPLO YING ELECTRIC SCHOOL BUSES TO PARTICIPATI NG
SCHOOL SYSTEMS; AND
LAWRENCE J. HOGAN, JR., Governor Ch. 570
– 3 –
(II) THE INCREMENTAL ADMINISTRATIVE AND O PERATING
COSTS INCURRED BY A PARTICIPATING SCHOOL SYSTEM IN IMPLEMENTI NG ITS
ELECTRIC SCHOOL BUS PILOT PROGRAM .
(B) (1) THERE IS AN ELECTRIC SCHOOL BUS PILOT PRO GRAM.
(2) THE ELECTRIC SCHOOL BUS PILOT PROGRAM SH ALL BE
IMPLEMENTED AND ADMI NISTERED BY THE COMMISSION AND SHALL OPERATE AS
PROVIDED IN THIS SEC TION.
(C) AN INVESTOR –OWNED ELECTRIC COMPA NY MAY APPLY TO THE
COMMISSION TO IMPLEME NT AN ELECTRIC SCHOO L BUS PILOT PROGRAM IF THE
PILOT PROGRAM IS STRUCTURED T O:
(1) COMMENCE ON OR BEFORE OCTOBER 1, 2024;
(2) PROVIDE FOR THE DEPL OYMENT OF NOT FEWER THAN 25
ELECTRIC SCHOOL BUSE S;
(3) PROVIDE FOR ELECTRIC SCHOOL BUS REBATES T O
PARTICIPATING SCHOOL SYSTEMS;
(4) LIMIT TOTAL REBATES TO $50,000,000;
(5) ALLOW THE INVESTOR –OWNED ELECTRIC COMPA NY TO USE THE
STORAGE BATTERIES OF THE ELECTRIC SCHOOL BUSES TO ACCESS THE STORED
ELECTRICITY THROUGH VEHICLE–TO–GRID TECHNOLOGY :
(I) EXCEPT AS PROVIDED I N ITEM (6) OF THIS SUBSECTION ,
WITHOUT ADDITIONAL COMPENSAT ION TO THE SCHOOL SY STEM FOR THE
ELECTRICITY; AND
(II) AT TIMES WHEN THE PA RTICIPATING SCHOOL S YSTEM
DETERMINES THAT THE SCHOOL BUSES ARE NOT NEEDED TO TRANSPORT
STUDENTS;
(6) ENSURE THAT IF THE I NVESTOR–OWNED UTILITY USES
ELECTRICITY THAT A PARTIC IPATING SCHOOL SYSTE M PROVIDES TO CHARGE AN
ELECTRIC SCHOOL BUS BATTERY, THE INVESTOR–OWNED UTILITY REPLAC ES THAT
ELECTRICITY AT NO CO ST TO THE PARTICIPAT ING SCHOOL SYSTEM ;
(7) PROVIDE FOR THE SELE CTION OF SCHOOL SYST EMS THAT APPLY
TO PARTICIPATE IN THE PILOT PROGRAM ON THE BASIS OF APPROPRIATE FACTORS
DETERMINED BY THE IN VESTOR–OWNED ELECTRIC COMPA NY WITH THE APPROVAL Ch. 570 2022 LAWS OF MARYLAND
– 4 –
OF THE COMMISSION, INCLUDING THE LOCATI ONAL BENEFITS THAT T HE STORAGE
BATTERIES OF SCHOOL BUSES MAY BRING TO T HE INVESTOR–OWNED ELECTRIC
COMPANY;
(8) CONSIDER, IN DETERMINING THE A PPROPRIATE FACTORS U NDER
ITEM (7) OF THIS SUBSECTION , THE HEALTH AND ECONO MIC EFFECTS ON
LOW–INCOME AND MINORITY COMMUNITIES ;
(9) PROVIDE AND INSTALL THE INTERCONNECTION EQUIPMENT AND
INTERCONNECTION FACIL ITIES FOR ELECTRIC V EHICLE CHARGING STAT IONS AND
TRAIN SCHOOL PERSONN EL IN THE PROPER USE OF THE EQUIPMENT AND
FACILITIES;
(10) EQUIP ENSURE EACH ELECTRONIC ELECTRIC SCHOOL BUS IS
EQUIPPED WITH LAP AND SHOULDER BEL TS IN ACCORDANCE WITH
RECOMMENDATIONS FROM THE NATIONAL TRANSPORTATION SAFETY BOARD; AND
(11) PROVIDE ENSURE THE SCHOOL BOARD IS PROVIDED WITH
ADEQUATE TRAINING AN D EXPERTISE TO OPERA TE ABLY ELECTRIC SCH OOL BUSES,
ELECTRIC VEHICLE CHA RGING STATIONS , AND ASSOCIATED INFRA STRUCTURE .
(D) A PARTICIPATING SCHOOL SYSTEM SHALL :
(1) WHEN DEPLOYING ELECT RIC SCHOOL BUSES , CONSIDER
CRITERIA THAT BENEFI T STUDENTS WHO ARE E LIGIBLE FOR FREE AND
REDUCED PRICE MEALS ; AND
(2) BEFORE THE DELIVERY OF ELECTRIC SCHOOL B USES, DEVELOP A
PLAN FOR TRAINING AN D RETAINING ANY SCHO OL SYSTEM EMPLOYEE A FFECTED BY
THE ELECTRIC SCHOOL BUS PILOT PROGRAM .
(E) (1) SUBJECT TO THE COMMISSION’S APPROVAL , AN
INVESTOR–OWNED ELECTRIC COMPA NY MAY R ECOVER ALL REASONABL E AND
PRUDENT PROGRAM COST S INCURRED UNDER AN ELECTRIC SCHOOL BUS PILOT
PROGRAM THROUGH A RATE APPLICATION TO BE MECHANISM THAT IS REVIEWED
AND APPROVED BY THE COMMISSION.
(2) A RATE APPLICATION UND ER THIS SUBSECTION S HALL INCLUDE
CONFORMING CHANGES T O THE PARTICIPATING INVESTOR–OWNED ELECTRIC
COMPANY’S APPLICABLE RATE SC HEDULES.
LAWRENCE J. HOGAN, JR., Governor Ch. 570
– 5 –
(3) SUBJECT TO THE COMMISSION’S APPROVAL , THE ELECTRIC
SCHOOL BUS PILOT PRO GRAM SHALL BECOME A REGULAR RATE SCHEDUL E OF THE
PARTICIPATING INVEST OR–OWNED ELECTRIC COMPANY .
(F) SUBJECT TO THE COMMISSION’S APPROVAL, AN INVESTOR –OWNED
ELECTRIC COMPANY MAY ESTABLISH A PILOT TA RIFF OR RATE TO PROV IDE SERVICE
TO AN ELECTRIC SCHOO L BUS.
(G) AN INVESTOR –OWNED ELECTRIC COMPA NY THAT APPLIES TO
IMPLEMENT AN ELECT RIC SCHOOL BUS PILOT PROGRAM SHALL PROVID E TO THE
COMMISSION ANY INFORM ATION, DATA, AND ANALYSIS THAT TH E COMMISSION
REQUIRES.
(H) THE COMMISSION SHALL APPR OVE, DENY, OR APPROVE WITH
MODIFICATIONS AN INV ESTOR–OWNED ELECTRIC COMPA NY’S APPLICATION TO
IMPLEMENT AN ELECTRIC SCH OOL BUS PILOT PROGRA M.
(I) (1) AN INVESTOR–OWNED ELECTRIC COMPA NY THAT ESTABLISHES
AN ELECTRIC SCHOOL B US PILOT PROGRAM AUT HORIZED BY THIS SECT ION SHALL,
IN CONSULTATION WITH EACH PARTICIPATING S CHOOL SYSTEM , BY FEBRUARY 1,
2024 2025, AND EACH YEAR THEREA FTER FOR THE DURATIO N OF THE PILOT
PROGRAM, REPORT ON THE STATUS OF THE PILOT PROGRAM TO THE GOVERNOR,
THE COMMISSION, AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE
GOVERNMENT ARTICLE, THE HOUSE ECONOMIC MATTERS COMMITTEE AND THE
SENATE FINANCE COMMITTEE.
(2) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS
SUBSECTION SHALL INC LUDE:
(I) AN EVALUATION OF THE ENVIRONMENTAL AND HE ALTH
BENEFITS OF THE PILO T PROGRAM; AND
(II) THE FINANCIAL COSTS AND BENEFITS OF IMPL EMENTING
THE PILOT PROGRAM TO THE PARTICIPATING SCHOOL SYSTEM AND THE
INVESTOR–OWNED UTILITY , INCLUDING:
1. THE DEPLOYMENT , OPERATION, AND MAINTENANCE
OF THE ELECTRIC SCHO OL BUSES; AND
2. THE USE OF VEHICLE –TO–GRID TECHNOLOGY .
(J) THE INITIAL DURATION OF AN ELECTRIC SCHOOL B US PILOT PROGRAM
SHALL BE AT LEAST 3 YEARS AND MAY NOT EX CEED 5 YEARS.
Ch. 570 2022 LAWS OF MARYLAND
– 6 –
(K) ON THE REQUEST OF AN INVESTOR–OWNED ELECTRIC COMPA NY, THE
COMMISSION MAY AUTHOR IZE AN EXPANSION OF THE SCOPE, DEPLOYMENT ,
PROGRAM COSTS , AND DURATION OF THE ELECTRIC SCHOOL BUS PILOT PROGRAM .
SECTION 2. AND BE IT FURTHER ENACTED, That , with respect to the electric
school bus pilot program under § 7–217 of the Public Utilities Article, as enacted by Section
1 of this Act:
(1) the General Assembly encourages electric school bus pilot program
applicants to seek any federal funds that may be available to the applicants, including
funds available under the federal Infrastructure and Investment Jobs Act.; and
(2) SECTION 3. AND BE IT FURTHER ENACTED, That, where feasible,
the General Assembly encourages electric school bus pilot program applicants to produce
or procure electricity generated by renewable resources to power electric school bus
charging infrastructure.
SECTION 4. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
June 1, 2022.
Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.