SB 137
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 137 (Senator Zucker)
Education, Health, and Environmental Affairs Environment and Transportation
and Budget and Taxation
Maryland Transit Administration – Conversion to Zero–Emission Buses (Zero–
Emission Bus Transition Act)
This bill prohibits the Maryland Transit Administration (MTA), beginning in fiscal 2023,
from entering into a contract to purchase buses for its transit bus fleet that are not
zero-emission buses (as defined by the bill); however, MTA may purchase an
alternative-fuel bus (as defined by the bill) instead if it determines that no available
zero-emission bus meets the performance requirements for a particular use. The bill does
not apply to any bus that is part of a locally operated transit system. The bill also requires
MTA to submit a report by January 1, 2022, and each January 1 thereafter, regarding the
conversion of its bus fleet to zero-emission buses.
Fiscal Summary
State Effect: Transportation Trust Fund (TTF) expenditures increase by at least
$24.8 million annually beginning in FY 2023, assuming zero-emission buses are
purchased, as discussed below. Revenues are not affected.
($ in millions) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Revenues $0 $0 $0 $0 $0
SF Expenditure 0 24.8 24.8 24.8 24.8
Net Effect $0.0 ($24.8) ($24.8) ($24.8) ($24.8)
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: The bill does not directly affect local government operations or finances.
Small Business Effect: Minimal.
Analysis
Bill Summary: The full cost of any zero-emission and alternative-fuel buses purchased
under the bill must be paid from TTF. MTA must ensure the development of charging
infrastructure to support the operation of zero-emission buses in the State transit bus fleet.
The annual report submitted by MTA to specified legislative committees must include:
a schedule for converting MTA’s transit bus fleet to zero-emission buses;
an evaluation of the charging infrastructure needed for MTA to create and maintain
a State transit bus fleet of zero-emission buses;
a plan for transitioning any State employees adversely affected by the conversion to
a zero-emission State transit bus fleet to similar or other employment within MTA
or the Maryland Department of Transportation (MDOT) that has commensurate
seniority, pay, and benefits;
in coordination with other appropriate State agencies, an estimate of the reduction
in the amount of carbon dioxide emissions, measured in pounds, that will be
obtained through the use of zero-emission buses each year until the fleet is fully
converted; and
a financial analysis comparing the projected cost of continuing to operate a
diesel-powered transit State bus fleet to the projected cost of purchasing,
maintaining, and providing charging infrastructure for the zero-emission State bus
transit fleet, as specified.
Current Law: MTA is a modal unit within MDOT, and it operates a comprehensive transit
system throughout the Baltimore-Washington metropolitan area, including more than
50 local bus lines in Baltimore and other services, such as the light rail, Baltimore Metro
subway, commuter buses, Maryland Area Regional Commuter trains, and
mobility/paratransit vehicles. With the exception of the District of Columbia Metrorail
system, MDOT and MTA are generally the agencies responsible for the construction and
operation of transit lines in the State.
State Expenditures: MTA’s bus fleet is comprised of about 775 total buses. MTA is
currently studying the feasibility of converting the bus fleet to zero-emissions vehicles with
a focus on the cost of the vehicles, the reliability of the vehicles, and the infrastructure
necessary to accommodate such a fleet.
MTA advises that it is currently in the middle of a contract for the purchase of 70 clean
diesel buses each year through fiscal 2022. MTA plans to sign a new contract for the
purchase of 70 buses each year from fiscal 2023 through 2027 in order to replace many of
the older buses in its fleet.
SB 137/ Page 2
For purposes of this analysis, it is assumed that MTA maintains its current plan but
purchases 70 new electric buses annually instead of diesel buses as a result of the bill. As
MTA’s fleet is comprised of two types of buses (standard 40-foot long buses and
articulated 60-foot long buses), it is also assumed that 10 of the 60-foot long buses and
60 of the 40-foot long buses are purchased each year; this projection is based on how many
of each type of bus MTA currently owns.
Therefore, TTF expenditures increase by approximately $24.8 million annually beginning
in fiscal 2023 to purchase electric buses instead of diesel buses; however, costs may vary
to the extent that MTA purchases any alternative-fuel buses, as authorized by the bill under
specified conditions. Exhibit 1 illustrates the cost difference for MTA between purchasing
a diesel bus and an electric bus of each type. The estimate includes the cost of charging
equipment for each bus, which, while not included with the bus purchase, is necessary to
be able to recharge the buses when not in use.
Exhibit 1
Estimated MTA Purchasing Cost
Diesel Bus vs. Electric Bus
Cost Per Cost Per
Diesel Bus Electric Bus Difference
40-foot Bus $570,000 $850,000 $280,000
Charging Equipment 0 98,750 98,750
Total $570,000 $948,750 $378,750
60-foot Articulated Bus $840,000 $950,000 $110,000
Charging Equipment 0 98,750 98,750
Total $840,000 $1,048,750 $208,750
MTA: Maryland Transit Administration
Source: Maryland Transit Administration; Department of Legislative Services
The estimate does not include additional costs for MTA to (1) upgrade or retrofit its
four bus garages to accommodate charging stations (the cost of doing so ranges from
$55 million to $225 million per garage) or (2) train existing staff or hire new staff to
maintain and repair the new buses. Accordingly, costs are higher than the minimum
estimate provided above.
SB 137/ Page 3
Additionally, the estimate does not include any difference in other operating costs (such as
electricity or diesel fuel) for MTA or the Department of General Services (which provides
fuel for MTA’s bus fleet) that cannot be reliably estimated at this time.
MTA can complete the annual report using existing budgeted resources. Other appropriate
agencies can assist MTA with the report using existing budgeted resources.
Additional Information
Prior Introductions: HB 432 of 2020, a similar bill, passed the House with amendments
and was referred to the Senate Education, Health, and Environmental Affairs Committee
and the Senate Budget and Taxation Committee, but no further action was taken. Its
cross file, SB 423, a similar bill, received a hearing in the Senate Education, Health, and
Environmental Affairs Committee, but no further action was taken.
Designated Cross File: HB 334 (Delegate Korman) - Environment and Transportation
and Appropriations.
Information Source(s): Maryland Department of Transportation; Department of General
Services; Department of Natural Resources; Maryland Energy Administration; Department
of Legislative Services
Fiscal Note History: First Reader - January 24, 2021
rh/lgc Third Reader - April 10, 2021
Revised - Amendment(s) - April 10, 2021
Analysis by: Richard L. Duncan Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 137/ Page 4
Statutes affected: Text - First - Maryland Transit Administration – Conversion to Zero–Emission Buses (Zero–Emission Bus Transition Act): 7-406 Transportation
Text - Third - Maryland Transit Administration – Conversion to Zero–Emission Buses (Zero–Emission Bus Transition Act): 7-406 Transportation