Roadrunner Capitol Reports
Legislation Detail

SB 196 ELECTRIC SCHOOL BUSES

Sen William Soules

Actions: [2] SCC/SEC/SFC-SCC

Scheduled: Not Scheduled

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Summary:
 Senate Bill 196 (SB 196) provides school districts with the option to replace school buses with electric or zero emission alternative fuel school buses, including entering into agreements for electrical energy storage. SB 196 tasks the board of regents of New Mexico State University with conducting a statewide study and providing a report on the feasibility and costs for school districts to transition to electric school buses. SB 196 makes appropriations. 
Legislation Overview:
 Senate Bill 196 (SB 196) in Section 1 amends Public Schools Section 22-8-27 NMSA 1978 (being Laws 1967, Chapter 16, Section 77, as amended) in Subsection B to insert:
The department shall provide school districts the option to replace a school bus with an electric or a zero emission alternative fuel school bus.

Subsection G is added to specify the department shall provide a school district with no less funding per bus than for a diesel school bus replacement. If sufficient school bus replacement funds are available, the department may provide additional funding for an electric or a zero emission alternative fuel school bus and related charging infrastructure.

SECTION 2 is added to allow that electric school buses may have alternative uses and allows superintendent agreements.
 A. Electric school buses owned, leased or purchased by the state may, when not in use by the school district for the transportation of students, be used as electrical energy storage to
-provide grid services; or 
-use by schools to reduce daily electrical demand and for electric supply in an emergency, as determined and declared by the superintendent. 

B. Prior to an electric school bus or its battery being used pursuant to this section, the superintendent of the school district shall negotiate an agreement with a school, electric utility or cooperative service for the use, compensation or testing of the school bus or its battery. 

SECTION 3 provides a temporary provision that the board of regents of New Mexico State University (NMSU) shall study and report on the feasibility and requisite actions, costs and infrastructure for each school district to transition to electric school buses and related grants and incentive opportunities. The report shall include the the information specified in Subsection A.

By August 1, 2025, the report shall be completed and copies transmitted to the secretary of Public Education and others as specified in Subsection B.

SECTION 4 makes appropriations from the General Fund as follows:
A. $400,000 to the board of regents of NMSU for expenditure in Fiscal Years 2024 and 2025 to conduct the study and prepare the report pursuant to Section 3. Any unexpended or unencumbered balance remaining at the end of Fiscal Year 2025 shall revert to the General Fund. 

B. $100,000 to the Public Education Department for expenditure in Fiscal Year 2025 for the state transportation division to:
- develop expertise on electric buses, charging stations, related infrastructure and electrical changes
- share this expertise with school districts and assist school districts with federal grant applications for electric school buses, charging stations and related infrastructure and electrical changes. 

Any unexpended or unencumbered balance remaining at the end of Fiscal Year 2025 shall revert to the General Fund. 
Current Law:
 Senate Bill 196 amends Public Schools to provide school districts an option to replace a school bus with an electric or zero emission alternative fuel school bus. Current statute does not allow this option.
 
Relates To:
 Senate Bill 196 duplicates House Bill 75.