SB 988 — Electric utilities; electric school bus projects.

SESSION history | hilite | pdf | print version 20107510D20109356D SENATE BILL NO.

988 AMENDMENT IN THE NATURE OF A SUBSTITUTE (Proposed by the SenateHouse Committee on CommerceLabor and LaborCommerce on February 9,27, 2020) (Patron Prior to Substitute--Senator Lucas) A BILL to amend and reenact § 58.1-3660 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 56-585.1:11, relating to electric utilities;utility regulation;

pilot program for electric school busbuses. projects.

That § 58.1-3660 of the Code of Virginia is amended and reenacted and that the Code of Virginia is amended by adding a section numbered 56-585.1:11 as follows:

DevelopmentPilot ofprogram for electric school busbuses. projects.

TheAs developmentused of electric school bus projects by a Phase II Utility, as such term is defined in subdivisionthis Asection: 1 of § 56-585.1, is in the public interest, including the public interest in reduced carbon and other emissions from school buses fueled by petroleum-based fuels, the public health benefit to pupils and citizens at large associated with school buses fueled in whole or in part by electricity, and the use of such buses as electric grid stabilization or peak shaving resources.

To"Electric promoteschool thebus" developmentmeans anda proliferation of electric school busbus, transportationas defined in the§ Commonwealth,46.2-100, anythat Phaseis IIpowered Utilityby mayan submitelectric amotor petitiondrawing tocurrent thefrom Commission,rechargeable nostorage morebatteries thanthat onceare annually,recharged forwith aelectric rateenergy adjustmentfrom clausean to recover the costs of one or more electric schoolvehicle buscharging projectsstation. pursuant to subdivision A 6 of § 56-585.1.

Any"Electric such electric school bus projectpilot capitalprogram" investmentmeans amounts shall, upon the request of the utility in a triennialpilot reviewprogram proceedingconducted directed by subdivisions A 1 and 3 of § 56-585.1, qualify for a customerPhase creditII reinvestmentutility offset pursuant to subdivisionthe Aprovisions 8 d of §this 56-585.1.section.

"Incremental costs of purchasing and deploying electric school buses" means the amount by which the costs of purchasing and deploying electric school buses exceeds the costs of purchasing and deploying diesel school buses.

"Participating school division" means a school division within a Phase II utility's service territory that participates in an electric school bus pilot program pursuant to an agreement between its school board and a Phase II utility.

"Phase II utility" means an investor-owned incumbent electric utility that was, as of July 1, 1999, bound by a rate case settlement adopted by the Commission that extended in its application beyond January 1, 2002.

"Program costs" means the incremental costs of purchasing and deploying electric school buses to participating school divisions, including associated administrative and operating costs, that are incurred by a Phase II utility in implementing its electric school bus pilot program.

InEach developing an electric school bus project,pilot anyprogram Phaseshall: II Utility shall be authorized, notwithstanding the provisions of § 13.1-620 or the articles of incorporation of such utility, either directly or through an affiliate or subsidiary, to (i) purchase, own, manage, or control school buses powered in whole or in part by electricity, along with associated charging or other infrastructure;

(ii)1. enter into third-party agreements for the purchase, lease, or use of school buses powered in whole or in part by electricity, along with associated charging or other infrastructure;

(iii)Provide enterfor intothe agreementsinitial withdeployment anyto schoolparticipating board of any public school divisiondivisions locatedby inDecember the31, Commonwealth2020, forof jointnot ownershipmore orthan for50 leasingelectric on commercially competitive terms of school buses poweredwith inprogram wholecosts orthat indo partnot byexceed electricity,$13.5 alongmillion; with associated charging or other infrastructure;

(iv)2. provide financial incentives or rebates to any school board of a public school division in the Commonwealth to promote or facilitate the purchase and ownership by such public school board of school buses powered in whole or in part by electricity, along with associated charging or other infrastructure;

andAuthorize (v)a engagePhase inII otherutility activities,to asexpand approvedits byinitial theelectric Commission,school bus pilot program after January 1, 2021, to promoteprovide for the developmentdeployment andin proliferationparticipating school divisions of not more than a total of 200 additional electric school busbuses transportationper inyear for each of the Commonwealth.following five years, with additional program costs for each of the following five years not exceeding $54 million per year;

To3. the extent that revenues are generated from the leasing of utility-owned school buses or associated charging or other infrastructure to a school board, such revenues shall be applied by the utility to offset the costs of the associated equipment.

AnyProvide publicthat schoolthe board participating in an electric school busdivision project may retain any operations and maintenance expense savings, including fuel costs savings, that it achieves in connection with such project, and any electric energy from an electric school bus utilized by the utility in connection with grid stability aspects of a project shall beown replaced at no cost to the school board.buses;

The4. utility shall not incur any liability for civil damages arising out of acts or omissions relating to the operation or maintenance of a school bus included in an electric school bus project.

Permit the Phase II utility to tap into the storage batteries of the electric school buses in order to access the stored electricity through vehicle-to-grid technology at times when the school buses are not in use, including periods of a power outage or emergency, when energy demand is high, or when renewable energy resources are intermittent, without compensation to the school division for such electricity unless otherwise provided in the agreement between the school board and the Phase II utility;

5.

Provide for the selection of school divisions that apply to participate in the electric school bus pilot program on the basis of the locational benefits that the school buses' storage batteries are expected to bring to the Phase II utility's electric system;

and 6.

Provide that the primary purpose of electric school buses is student transportation and if the Phase II utility's use of the battery compromises the school boards' ability to transport the students either through bus unavailability or insufficient charge, then the Phase II utility shall compensate the school board for such unavailability or insufficient charge.

The agreement shall specify the terms of such compensation.

AnyEach schoolPhase boardII ofutility athat publicelects to operate an electric school divisionbus locatedpilot withinprogram theshall servicebe territoryentitled ofto arecover qualifyingall Phasereasonable IIand Utilityprudent shallprogram becosts eligibleas tooperations participateand inmaintenance anexpenses electricthrough schoolthe busPhase project.II utility's base rates.

Any such utility implementing an electric school bus project shall limit participation in such project to a maximum of 40 percent, in the aggregate, of the annual calendar year school bus purchases by all the school boards of school divisions located in the service territory of the qualifying utility.

Any school buses associated with an electric school bus projectpilot shallprogram beproposed procuredby pursuant to a competitivePhase solicitationII processutility conductedthat bysatisfies the qualifyingrequirements utility,of athis participatingsection schoolis board,in or the Commonwealth.public interest.

NothingThe inCommission thisshall, sectionby shallDecember authorize1, a2020, utilityadopt tosuch directlyrules engageor inestablish studentsuch transportation.guidelines as may be necessary for the general administration of electric school bus pilot programs.

AnyEach schoolPhase busII associatedutility withshall, anby December 1, 2021, and annually thereafter, report on the status of its electric school bus projectpilot shallprogram beto equippedthe withGovernor, anthe activeCommission, lap-and-shoulderand beltthe occupantChairmen restraintof systemthe forHouse eachand designatedSenate passengerCommerce seatingand position.Labor Committees.

AfterThe Decemberduration 31,of 2025,an a Phase II Utility shall not develop any new electric school bus projects,pilot andprogram noshall school board that is not participatingexceed in10 anyears. existing electric school bus project shall participate in an electric school bus project.

H.However, at any time after filing its initial report on the status of its electric school bus pilot program as required by subsection F, a Phase II utility may move the Commission to make its electric school bus pilot program permanent.

AsThe usedmotion inshall thisinclude section,a "electriccompliance schoolfiling buswith project"conforming meanschanges any project designed to encourage the proliferationparticipating ofutility's schoolapplicable busesrate thatschedules. are fueled in whole or in part by electricity, along with associated charging and other infrastructure, for the purpose of transporting students of any public school division within the Commonwealth and that may also serve as electric grid stabilization or peak shaving resources.

§Upon 58.1-3660.the Commission's granting of the motion, the electric school bus pilot program shall become a regular rate schedule of the participating utility.

Certified pollution control equipment and facilities.

A.

Certified pollution control equipment and facilities, as defined herein, are hereby declared to be a separate class of property and shall constitute a classification for local taxation separate from other such classification of real or personal property and such property.

Certified pollution control equipment and facilities shall be exempt from state and local taxation pursuant to Article X, Section 6 (d) of the Constitution of Virginia.

B.