Bill Text: NJ S4077 | 2020-2021 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Requires DEP to develop and implement electric school bus program; provides for $15 million in first year and $15 million annually in subsequent two years to DEP, subject to availability, to provide grants.

Spectrum: Moderate Partisan Bill (Democrat 7-1)

Status: (Engrossed - Dead) 2021-12-20 - Received in the Assembly, Referred to Assembly Transportation and Independent Authorities Committee [S4077 Detail]

Download: New_Jersey-2020-S4077-Introduced.html

SENATE, No. 4077

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED NOVEMBER 8, 2021

 


 

Sponsored by:

Senator  PATRICK J. DIEGNAN, JR.

District 18 (Middlesex)

 

 

 

 

SYNOPSIS

     Requires EDA to develop and implement electric school bus pilot program; provides $15 million per year to EDA to provide grants for this purpose.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act establishing an electric school bus pilot program, supplementing Title 34 of the Revised Statutes, and amending P.L.1999, c.23.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    (New section)  a.  No later than six months after the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill), the New Jersey Economic Development Authority, hereinafter, "authority," in consultation with the Board of Public Utilities, the Department of Transportation, the Department of Education, the Department of Environmental Protection, and the New Jersey Motor Vehicle Commission, shall develop and implement a three-year "Electric School Bus Pilot Program" to determine the operational reliability and cost effectiveness of replacing diesel-powered school buses with electric school buses for the daily transportation of students.

     b.    On or after the date of implementation of the pilot program developed pursuant to subsection a. of this section, and once each year for the next two years thereafter, the authority, in consultation with the Department of Education and the Department of Environmental Protection, shall select for participation in the pilot program no less than six school districts or school bus contractors that operate school buses, as described in section 1 of P.L.1996, c.96 (C.39:3B-1.1), so that during the third year of the pilot program, no less than a total of 18 school districts or school bus contractors shall have been selected for participation in the pilot program amongst the northern, central, and southern regions of the State.  In each year, at least one of the school districts or school bus contractors selected by the authority shall be located in a "low-income, urban, or environmental justice community" as defined in section 2 of P.L.2019, c.362 (C.48:25-2). The authority shall design a transparent outreach and application process to facilitate the selection of school districts and school bus contractors.

     c.     (1) Under the pilot program, the authority shall award grants to school districts or school bus contractors selected to participate in the pilot program to purchase or lease electric school buses and to purchase or lease and install electric school bus charging infrastructure in coordination with any State department, board, bureau, commission, or agency as necessary.  Pursuant to any outright purchase or lease arrangement entered into by a school district or school bus contractor participating in the pilot program, an electric school bus and charging infrastructure vendor purchase
or lease arrangement shall include, at a minimum, the following:

     (a)   an electric school bus having a minimum range of 110 miles per full charge and an on-board telematics monitoring system with external Internet interface;

     (b)   an electric school bus and charging infrastructure, as appropriate, having "vehicle-to-grid" and "vehicle-to-building" electric vehicle charging capability, and any associated equipment and technology to meet that capability;

     (c)   appropriate training for bus maintenance personnel, bus drivers, and bus inspectors; and

     (d)   electric school bus and charging infrastructure shop manuals and wiring schematics for troubleshooting and a complete list of component parts.

     (2) Monies for the "Electric School Bus Pilot Program" shall be used by the authority to provide grants, pursuant to this subsection, in the amount of $15,000,000 per year, for a total of $45,000,000 over the three-year period.  The authority may use available monies to provide grants, pursuant to this subsection, singly or in combination, from the following sources: societal benefits charge revenues received pursuant to section 12 of P.L.1999, c.23 (C.48:3-60); the Plug-in Electric Vehicle Incentive Fund established pursuant to section 7 of P.L.2019, c.362 (C.48:25-7); or the "Global Warming Solutions Fund" established pursuant to section 6 of P.L.2007, c.340 (C.26:2C-50).

     d.    The school districts or school bus contractors selected to participate in the pilot program shall submit quarterly reports to the authority detailing the cost to operate the electric school buses, including electric school bus maintenance records and transponder data, and details of any reliability issues related to the operation of the electric school buses.

     e.     (1) The authority shall establish a committee, chaired by a representative of the authority, which also includes a representative of the Board of Public Utilities, the Department of Transportation, the Department of Education, the Department of Environmental Protection, and the New Jersey Motor Vehicle Commission.  The committee shall meet monthly to review the quarterly reports and recommend solutions to any issue raised in a quarterly report submitted by a pilot program participant.  The authority shall collect any additional information and data necessary to complete any report required to be submitted to the Governor and Legislature pursuant to subsection f. of this section.

     (2)   The committee shall require a recipient of any grant under any State agency-administered program for the provision of an electric school bus and electric school bus charging infrastructure prior to the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) to submit any additional information and data to the committee to compliment any data received by the committee from pilot program participants pursuant to this subsection.

     f.     The authority, in collaboration with the Board of Public Utilities, the Department of Transportation, the Department of Education, the Department of Environmental Protection, and the New Jersey Motor Vehicle Commission, shall publish and submit an "Electric School Bus Pilot Program" report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature. The initial report shall be submitted within 14 months after the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) and every eight months thereafter throughout the duration of the pilot program.

     Each submitted report shall include:

     (1)   a description and comprehensive review of the pilot program, including but not limited to, an evaluation of the pilot program's effectiveness;

     (2)   a summary description of all grants and loans used for the purchase or lease of electric school buses from any State program, the names of those recipients, the amount of funding each State program recipient received, and the current status of the funds provided to each recipient;

     (3)   an analysis of the data received from each pilot program grantee and the steps taken to fix problems that have been identified by the analysis provided by the grantee;

     (4)   an analysis of the operational reliability and cost effectiveness of the use of electric school buses and charging infrastructure by each grantee;

     (5)   an analysis of the potential environmental benefits of electric school buses and charging infrastructure;

     (6)   any improvements in the design or operation of electric school buses and charging infrastructure that may be needed to make the buses and charging infrastructure safer, more economical or environmentally advantageous;

     (7)   an analysis of the potential costs and benefits of using electric school bus batteries for storing power to be returned to the electric grid or to school buildings during periods of peak electric power demand;

     (8)   a description of the vendor management system and the cross-vendor comparison used to assess reliability and costs between the different vendors supplying electric school buses and charging infrastructure; and

     (9)   an analysis of any additional external changes that the use of electric school buses and charging infrastructure may require regarding electric service rate schedules, school bus inspection standards, or any other major considerations.

     In addition to the information included pursuant to paragraphs (1) through (9) of this subsection, the final report shall include a recommendation of how to make the pilot program permanent by expanding the program Statewide through the establishment of grant and loan programs to provide assistance to school districts and school bus contractors for the replacement of their bus fleets as school buses come to the end of their legal life cycles.

     g.    The authority, in consultation with the Board of Public Utilities, the Commissioner of Transportation, the Commissioner of Education, the Department of Environmental Protection, and the Chief Administrator of the New Jersey Motor Vehicle Commission shall, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), promulgate rules and regulations to effectuate the purposes of P.L.    , c.    (C.        ) (pending before the Legislature as this bill). The rules and regulations shall include, but not be limited to, the collection and reporting of information to the authority, pursuant to subsections d. through f. of this section, as determined by the authority.

 

     2.    Section 12 of P.L.1999, c.23 (C.48:3-60) is amended to read as follows:

     12.  a. Simultaneously with the starting date for the implementation of retail choice as determined by the board pursuant to subsection a. of section 5 of P.L.1999, c.23 (C.48:3-53), the board shall permit each electric public utility and gas public utility to recover some or all of the following costs through a societal benefits charge that shall be collected as a non-bypassable charge imposed on all electric public utility customers and gas public utility customers, as appropriate:

     (1)   The costs for the social programs for which rate recovery was approved by the board prior to April 30, 1997.  For the purpose of establishing initial unbundled rates pursuant to section 4 of P.L.1999, c.23 (C.48:3-52), the societal benefits charge shall be set to recover the same level of social program costs as is being collected in the bundled rates of the electric public utility on the effective date of P.L.1999, c.23 (C.48:3-49 et al.). The board may subsequently order, pursuant to its rules and regulations, an increase or decrease in the societal benefits charge to reflect changes in the costs to the utility of administering existing social programs.  Nothing in P.L.1999, c.23 (C.48:3-49 et al.) shall be construed to abolish or change any social program required by statute or board order or rule or regulation to be provided by an electric public utility.  Any such social program shall continue to be provided by the utility until otherwise provided by law, unless the board determines that it is no longer appropriate for the electric public utility to provide the program, or the board chooses to modify the program;

     (2)   Nuclear plant decommissioning costs;

     (3)   The costs of demand side management programs that were approved by the board pursuant to its demand side management regulations prior to April 30, 1997.  For the purpose of establishing initial unbundled rates pursuant to section 4 of P.L.1999, c.23 (C.48:3-52), the societal benefits charge shall be set to recover the same level of demand side management program costs as is being collected in the bundled rates of the electric public utility on the effective date of P.L.1999, c.23 (C.48:3-49 et al.).  Within four months of the effective date of P.L.1999, c.23 (C.48:3-49 et al.), and every four years thereafter, the board shall initiate a proceeding and cause to be undertaken a comprehensive resource analysis of energy programs, and within eight months of initiating such proceeding and after notice, provision of the opportunity for public comment, and public hearing, the board, in consultation with the Department of Environmental Protection, shall determine the appropriate level of funding for energy efficiency , plug-in electric vehicles and plug-in electric vehicle charging infrastructure, and Class I renewable energy programs that provide environmental benefits above and beyond those provided by standard offer or similar programs in effect as of the effective date of P.L.1999, c.23 (C.48:3-49 et al.); provided that the funding for such programs be no less than 50 percent of the total Statewide amount being collected in electric and gas public utility rates for demand side management programs on the effective date of P.L.1999, c.23 (C.48:3-49 et al.) for an initial period of four years from the issuance of the first comprehensive resource analysis following the effective date of P.L.1999, c.23 (C.48:3-49 et al..), and provided that 25 percent of this amount shall be used to provide funding for Class I renewable energy projects in the State.  In each of the following fifth through eighth years, the Statewide funding for such programs shall be no less than 50 percent of the total Statewide amount being collected in electric and gas public utility rates for demand side management programs on the effective date of P.L.1999, c.23 (C.48:3-49 et al.), except that as additional funds are made available as a result of the expiration of past standard offer or similar commitments, the minimum amount of funding for such programs shall increase by an additional amount equal to 50 percent of the additional funds made available, until the minimum amount of funding dedicated to such programs reaches $140,000,000 total.  After the eighth year the board shall make a determination as to the appropriate level of funding for these programs.  Such programs shall include a program to provide financial incentives for the installation of Class I renewable energy projects in the State, and the board, in consultation with the Department of Environmental Protection, shall determine the level and total amount of such incentives as well as the renewable technologies eligible for such incentives which shall include, at a minimum, photovoltaic, wind, and fuel cells. The board shall simultaneously determine, as a result of the comprehensive resource analysis, the programs to be funded by the societal benefits charge, the level of cost recovery and performance incentives for old and new programs and whether the recovery of demand side management programs' costs currently approved by the board may be reduced or extended over a longer period of time.  The board shall make these determinations taking into consideration existing market barriers and environmental benefits, with the objective of transforming markets, capturing lost opportunities, making energy services more affordable for low income customers and eliminating subsidies for programs that can be delivered in the marketplace without electric public utility and gas public utility customer funding;

     (4)   Manufactured gas plant remediation costs, which shall be determined initially in a manner consistent with mechanisms in the remediation adjustment clauses for the electric public utility and gas public utility adopted by the board; [and]

     (5)   The cost, of consumer education, as determined by the board, which shall be in an amount that, together with the consumer education surcharge imposed on electric power supplier license fees pursuant to subsection h. of section 29 of P.L.1999, c.23 (C.48:3-78) and the consumer education surcharge imposed on gas supplier license fees pursuant to subsection g. of section 30 of P.L.1999, c.23 (C.48:3-79), shall be sufficient to fund the consumer education program established pursuant to section 36 of P.L.1999, c.23 (C.48:3-85); and

     (6)   No later than six months after the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill), a portion of the costs of the "Electric School Bus Pilot Program" administered by the New Jersey Economic Development Authority, for the purposes provided in section 1 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

     b.    There is established in the Board of Public Utilities a nonlapsing fund to be known as the "Universal Service Fund."  The board shall determine: the level of funding and the appropriate administration of the fund; the purposes and programs to be funded with monies from the fund; which social programs shall be provided by an electric public utility as part of the provision of its regulated services which provide a public benefit; whether the funds appropriated to fund the "Lifeline Credit Program" established pursuant to P.L.1979, c.197 (C.48:2-29.15 et seq.), the "Tenants' Lifeline Assistance Program" established pursuant to P.L.1981, c.210 [(C.48:2-29.31 et seq.)] (C.48:2-29.30 et seq.), the funds received pursuant to the Low Income Home Energy Assistance Program established pursuant to 42 U.S.C. s.8621 et seq., and funds collected by electric and [natural] gas public utilities, as authorized by the board, to offset uncollectible electricity and natural gas bills should be deposited in the fund; and whether new charges should be imposed to fund new or expanded social programs.

(cf: P.L.2019, c.362, s.13)

     3.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill requires the New Jersey Economic Development Authority (EDA), in consultation with the Board of Public Utilities (BPU), the Department of Transportation (DOT), the Department of Education (DOE), the Department of Environmental Protection (DEP), and the New Jersey Motor Vehicle Commission (MVC), to develop and implement, a three-year "Electric School Bus Pilot Program" (pilot program).  The purpose of the pilot program is to determine the operational reliability and cost effectiveness of replacing diesel-powered school buses with electric school buses for daily transportation of students.

     The bill requires the EDA, in consultation with the DOE and DEP, to select no less than six school districts (districts) or school bus contractors (bus contractors) annually for participation in the pilot program, so that during the third year of the pilot program, no less than a total of 18 school districts or school bus contractors are selected for participation in the pilot program amongst the northern, central, and southern regions of the State.  At least one of the districts or bus contractors annually selected is to be located in a "low-income, urban, or environmental justice community" as defined pursuant to law.  The EDA is to design a transparent outreach and application process to facilitate the selection of districts and bus contractors.

     The EDA is to award grants to districts or bus contractors selected to participate in the pilot program to purchase or lease electric school buses and to purchase or lease and install electric school bus charging infrastructure.  An electric school bus and charging infrastructure vendor purchase or lease arrangement is to include certain provisions as described in the bill.  Under the bill, $45 million is made available for grants provided under the pilot program.  The EDA is to provide $15 million in grants for each year of the three-year pilot program.  The EDA may use available monies to provide grants from the following three sources: the societal benefits charge (SBC) revenues, the Plug-in Electric Vehicle Incentive Fund, or the "Global Warming Solutions Fund."

     The bill requires the districts or bus contractors selected to participate in the pilot program to submit quarterly reports to the EDA detailing the cost to operate electric school buses, including electric school bus maintenance records and transponder data, and details of any reliability issues related to the operation of the buses.  The EDA is to establish a committee, chaired by a representative of the EDA, which also includes a representative of the BPU, DOT, DOE, DEP, and MVC.  The committee is to meet monthly to review the quarterly reports and recommend solutions to any issue raised in a quarterly report submitted by a pilot program participant.  The committee is to require a recipient of any grant under any State agency-administered program for the provision of an electric school bus and electric school bus charging infrastructure prior to the effective date of the bill to submit any additional information and data to the committee to compliment any data received by the committee from pilot program participants.

     The bill requires the EDA, in collaboration with the BPU, DOT, DOE, DEP, and MVC, to submit reports to the Governor and Legislature within 14 months after the effective date of the bill and every eight months thereafter throughout the duration of the pilot program. The reports are to include certain information as described in the bill.

     The EDA, in consultation with the BPU, DOT, DOE, DEP, and MVC, is to promulgate rules and regulations to effectuate the purposes of the bill, including the collection and reporting of information included in the quarterly reports to be submitted to the EDA.

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