S-0693.1 SENATE BILL 5431 State of Washington 68th Legislature 2023 Regular Session By Senators Shewmake, Hasegawa, Hunt, Liias, Lovelett, Nguyen, Pedersen, SaldaƱa, Valdez, and C. Wilson Read first time 01/18/23. Referred to Committee on Early Learning & K-12 Education. 1 AN ACT Relating to requiring and funding the purchase of zero 2 emission school buses; amending RCW 28A.160.130, 28A.160.195, and 3 28A.160.205; adding new sections to chapter 28A.160 RCW; adding a new 4 section to chapter 28A.710 RCW; adding a new section to chapter 5 28A.715 RCW; and creating a new section. 6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: 7 NEW SECTION. Sec. 1. (1) The legislature finds that zero 8 emission vehicle technology is crucial to protecting Washington's 9 children from the health impacts of fossil fuel emissions and to 10 limiting the long-term impacts of climate change on our planet. 11 Spurred by a supportive regulatory environment, the state has made 12 great advances in recent years that have improved the performance and 13 reduced the costs of such vehicles. With the recent deployment of 14 financial incentives for clean transportation technology under the 15 federal inflation reduction act of 2022, the costs and performance of 16 zero emission vehicles, including zero emission school buses, are 17 forecast to continue to improve in coming years. Zero emission school 18 buses on the market today feature reduced fuel, operations, and 19 maintenance costs compared to their fossil-fueled counterparts. Zero 20 emission school buses also have significant public health benefits p. 1 SB 5431 1 for children and are part of a broad-based policy approach to slowing 2 the environmental consequences of climate change. 3 (2) Therefore, it is the intent of the legislature to transition 4 school districts, charter schools, and state-tribal education compact 5 schools to using only zero emission school buses and to facilitate 6 this transition through the requirements and zero emission school bus 7 grant program. 8 NEW SECTION. Sec. 2. A new section is added to chapter 28A.160 9 RCW to read as follows: 10 (1) Beginning September 1, 2035, any school buses purchased by 11 school districts, charter schools, or state-tribal education compact 12 schools, or used for pupil transportation services contracts under 13 RCW 28A.160.140, must be zero emission school buses. 14 (2) For the purposes of this section, "zero emission" means the 15 emission of no exhaust gas from a vehicle's onboard source of power, 16 other than water vapor. 17 NEW SECTION. Sec. 3. A new section is added to chapter 28A.160 18 RCW to read as follows: 19 (1) The zero emission school bus grant program is hereby 20 established. Grants to school districts, charter schools, and state- 21 tribal education compact schools for the replacement of school buses 22 powered by fossil fuels with zero emission school buses must be 23 funded in accordance with this section. 24 (2) Eligibility. 25 (a) Only school districts, charter schools, and state-tribal 26 education compact schools are eligible for a grant under this 27 section. 28 (b) Zero emission school buses, purchase and installation of 29 school bus charging stations, and associated electric vehicle 30 charging infrastructure and equipment are eligible grant uses under 31 this section. 32 (c) Except as provided for under (d) of this subsection, school 33 buses powered by fossil fuels must be at the end of their 34 depreciation schedule and deemed eligible for replacement pursuant to 35 RCW 28A.160.200 to be eligible for replacement under this program. 36 (d) For the purpose of determining eligibility for charter school 37 bus and state-tribal education compact school bus replacement under 38 this section, the office of the superintendent of public instruction p. 2 SB 5431 1 must establish a standard that is sufficiently equivalent to the 2 standard used to determine eligibility for school district bus 3 replacement under (c) of this subsection. 4 (3) Application process. 5 (a) The office of the superintendent of public instruction shall 6 develop a competitive grant application process and assist eligible 7 applicants in matters related to applying for grants under this 8 section. 9 (b) The competitive application process established under this 10 section must reflect a ranking system based on the following factors: 11 (i) Providing the greatest reduction in greenhouse gas emissions, as 12 measured by the number of vehicle miles traveled, for the amount of 13 state grant support; (ii) providing improvements in health equity for 14 communities of color and low-income communities; and (iii) the age of 15 applicants' fleets. The office of the superintendent of public 16 instruction may take into consideration other factors, such as 17 providing air quality improvements in areas with high traffic 18 congestion. However, the office of the superintendent of public 19 instruction must first prioritize grants that provide the greatest 20 reduction in greenhouse gas emissions for the amount of state grant 21 support. The office of the superintendent of public instruction may 22 consult with the department of ecology in the development and 23 evaluation of granting criteria. 24 (4) Administration. 25 (a) The office of the superintendent of public instruction may 26 use up to three percent of amounts appropriated for the grant program 27 under this section for costs that result from administration of the 28 program. 29 (b) Subject to the availability of amounts appropriated for this 30 specific purpose, the office of the superintendent of public 31 instruction shall award grants under this section on a competitive 32 basis and shall promulgate administrative rules for this purpose, 33 subject to other requirements of this section. 34 (c) The office of the superintendent of public instruction must 35 require that school districts, charter schools, and state-tribal 36 education compact schools receiving a grant for a zero emission 37 school bus grant under this section attest to meeting at least one of 38 the following conditions: (i) At the time of the grant award, the 39 grantee has sufficient charging infrastructure in place to operate 40 the replacement bus; or (ii) the grantee has secured enough funding, p. 3 SB 5431 1 inclusive of any prospective grant awarded under this section, to 2 purchase and install sufficient charging infrastructure to operate 3 the replacement bus. 4 (d) Grant awards to school districts must be deposited in the 5 transportation vehicle fund of the receiving school district 6 established under RCW 28A.160.130. 7 (5) Grant amount limitations. Grant amounts to school districts, 8 charter schools, and state-tribal education compact schools for the 9 replacement of school buses under this section must not exceed, on a 10 per-bus basis, the purchase price of the replacement school buses, 11 less total state depreciation payments received pursuant to RCW 12 28A.160.200 or any similar state payments to the extent applicable, 13 for the specific school buses being replaced and their salvage value. 14 Grant funding awarded for the purchase and installation of school bus 15 charging stations must not be included in this calculation. 16 (6) For the purposes of this section, "zero emission" has the 17 same meaning as in section 2 of this act. 18 Sec. 4. RCW 28A.160.130 and 2022 c 200 s 1 are each amended to 19 read as follows: 20 (1) There is created a fund on deposit with each county treasurer 21 for each school district of the county, which shall be known as the 22 transportation vehicle fund. Money to be deposited into the 23 transportation vehicle fund shall include, but is not limited to, the 24 following: 25 (a) The balance of accounts held in the general fund of each 26 school district for the purchase of approved transportation equipment 27 and for major transportation equipment repairs under RCW 28A.150.280. 28 The amount transferred shall be the balance of the account as of 29 September 1, 1982; 30 (b) Reimbursement payments provided for in RCW 28A.160.200 except 31 those provided under RCW 28A.160.200(3) that are necessary for 32 contracted payments to private carriers; 33 (c) Earnings from transportation vehicle fund investments as 34 authorized in RCW 28A.320.300; and 35 (d) The district's share of the proceeds from the sale of 36 transportation vehicles, as determined by the superintendent of 37 public instruction. 38 (2) Funds in the transportation vehicle fund may be used for the 39 following purposes: p. 4 SB 5431 1 (a) Purchase of pupil transportation vehicles pursuant to RCW 2 28A.160.200 and 28A.150.280; 3 (b) Payment of conditional sales contracts as authorized in RCW 4 28A.335.200 or payment of obligations authorized in RCW 28A.530.080, 5 entered into or issued for the purpose of pupil transportation 6 vehicles; 7 (c) Major repairs to pupil transportation vehicles; 8 (d) To complete a feasibility plan to transition from gas or 9 diesel pupil transportation vehicles to electric or zero emission 10 pupil transportation vehicles; 11 (e) Purchase, installation, and repair of electric pupil 12 transportation vehicle charging stations and other zero emission 13 pupil transportation vehicle fueling stations and for other costs 14 necessary for station installation; and 15 (f) Converting or repowering existing gas or diesel pupil 16 transportation vehicles to electric or zero emission pupil 17 transportation vehicles. 18 (3) Beginning September 1, 2035, any school buses purchased by 19 school districts from the transportation vehicle fund must meet the 20 definition of zero emission in section 2 of this act. 21 (4) The superintendent of public instruction shall adopt rules 22 which shall establish the standards, conditions, and procedures 23 governing the establishment and use of the transportation vehicle 24 fund. The rules shall not permit the transfer of funds from the 25 transportation vehicle fund to any other fund of the district. 26 Sec. 5. RCW 28A.160.195 and 2005 c 492 s 1 are each amended to 27 read as follows: 28 (1) The superintendent of public instruction, in consultation 29 with the regional transportation coordinators of the educational 30 service districts, shall establish a minimum number of school bus 31 categories considering the capacity and type of vehicles required by 32 school districts in Washington. Once nonzero emission school bus 33 pricing is deemed no longer necessary by the office of the 34 superintendent of public instruction for calculating depreciation 35 payments, these school bus categories must solely include school 36 buses that meet the definition of zero emission in section 2 of this 37 act. The superintendent, in consultation with the regional 38 transportation coordinators of the educational service districts, 39 shall establish competitive specifications for each category of p. 5 SB 5431 1 school bus. The categories shall be developed to produce minimum 2 long-range operating costs, including costs of equipment and all 3 costs in operating the vehicles. The competitive specifications shall 4 meet federal motor vehicle safety standards, minimum state 5 specifications as established by rule by the superintendent, and 6 supported options as determined by the superintendent in consultation 7 with the regional transportation coordinators of the educational 8 service districts. The superintendent may solicit and accept price 9 quotes for a rear-engine category school bus that shall be reimbursed 10 at the price of the corresponding front engine category. 11 (2) After establishing school bus categories and competitive 12 specifications, the superintendent of public instruction shall 13 solicit competitive price quotes for base buses from school bus 14 dealers to be in effect for one year and shall establish a list of 15 all accepted price quotes in each category obtained under this 16 subsection. The superintendent shall also solicit price quotes for 17 optional features and equipment and, beginning September 1, 2035, 18 require vendors to ensure that emission-related features meet the 19 definition of zero emission in section 2 of this act. 20 (3) The superintendent shall base the level of reimbursement to 21 school districts and educational service districts for school buses 22 on the lowest quote for the base bus in each category. School 23 districts and educational service districts shall be reimbursed for 24 buses purchased only through a lowest-price competitive bid process 25 conducted under RCW 28A.335.190 or through the state bid process 26 established by this section. 27 (4) Notwithstanding RCW 28A.335.190, school districts and 28 educational service districts may purchase at the quoted price 29 directly from any dealer who is on the list established under 30 subsection (2) of this section. School districts and educational 31 service districts may make their own selections for school buses, but 32 shall be reimbursed at the rates determined under subsection (3) of 33 this section and RCW 28A.160.200. District-selected options shall not 34 be reimbursed by the state. 35 (5) This section does not prohibit school districts or 36 educational service districts from conducting their own competitive 37 bid process. However, beginning September 1, 2035, any school buses 38 purchased by school districts, or used for pupil transportation 39 services contracts under RCW 28A.160.140, must be school buses that 40 meet the definition of zero emission in section 2 of this act. p. 6 SB 5431 1 (6) The office of the superintendent of public instruction shall 2 annually publish and update information regarding federal grant 3 opportunities pertinent to nonzero emission school bus replacement, 4 such as the clean school bus program under Title 42 U.S.C Sec. 16091. 5 (7) The superintendent of public instruction may adopt rules 6 under chapter 34.05 RCW to implement this section. 7 Sec. 6. RCW 28A.160.205 and 2007 c 348 s 101 are each amended to 8 read as follows: 9 (1) ((The)) Subject to subsection (2) of this section, the office 10 of the superintendent of public instruction shall implement a school 11 bus replacement incentive program. ((As part of the program, the 12 office shall fund up to ten percent of the cost of a new 2007 or 13 later model year school bus that meets the 2007 federal motor vehicle 14 emission control standards and is purchased by a school district by 15 no later than June 30, 2009, provided that the new bus is replacing a 16 1994 or older school bus in the school district's fleet. Replacement 17 of the oldest buses must be given highest priority.)) 18 (2) Beginning September 1, 2035, the office of the superintendent 19 of public instruction must provide funding under subsection (1) of 20 this section only for school buses that also meet the definition of 21 zero emission in section 2 of this act, except for any remaining 22 depreciation payments for school buses powered by fossil fuels that 23 were purchased prior to this date. 24 (3) The office of the superintendent of public instruction shall 25 ensure that buses being replaced through this program are surplused 26 under RCW 28A.335.180. As part of the surplus process, school 27 districts must provide written documentation to the office of the 28 superintendent of public instruction demonstrating that buses being 29 replaced are scrapped and not purchased for road use. The 30 documentation must include bus make, model, year, vehicle 31 identification number, engine make, engine serial number, and salvage 32 yard receipts; and must demonstrate that the engine and body of the 33 bus being replaced has been rendered unusable. 34 (((3))) (4) The office of the superintendent of public 35 instruction may adopt any rules necessary for the implementation of 36 chapter 348, Laws of 2007. 37 NEW SECTION. Sec. 7. A new section is added to chapter 28A.160 38 RCW to read as follows: p. 7 SB 5431 1 The requirements of this act are in addition to any rules adopted 2 by the department of ecology under chapter 70A.30 RCW, and nothing in 3 this act modifies or limits the provisions of chapter 70A.30 RCW as 4 they apply to zero emission school buses. 5 NEW SECTION. Sec. 8. A new section is added to chapter 28A.710 6 RCW to read as follows: 7 Section 2 of this act, related to zero emission school buses, 8 governs school operation and management under RCW 28A.710.040 and 9 applies to charter schools established under this chapter. 10 NEW SECTION. Sec. 9. A new section is added to chapter 28A.715 11 RCW to read as follows: 12 Section 2 of this act, related to zero emission school buses, 13 governs school operation and management under RCW 28A.715.020 and 14 applies to state-tribal education compact schools established under 15 this chapter.