Temporary Law allowing alternatives to school buses is up for review as sunset clause nears

House Bill 72 of 2021 allowed all LEAs to use vehicles other than school buses and taxis to transport students to and from school. This Bill passed and was enacted July 1, 2021 Included as part of the bill is a sunset clause for July 1, 2026. If no legislation is passed during the 2026 Legislative Session cementing it into permanent Law, then the law reverts back to the version that existed prior to 2021. This reverting back would now require that all LEAs submit waivers to MSDE to use alternative school vehicles and the MSDE would need to determine if the prohibition of to and from school would be put back into effect. The reason for the sunset clause in the original bill was due to some legislators worried that the use of Alternative School vehicles would cause small business (contractors) to suffer as they expected LEAs to buy vehicles and start covering more contracted routes. This has not seemed to be the case so far so it is likely that the law could become permanent. After the MSDE receives verification on the final version of the law, we will look to amend the regulations based on feedback over the past 5 years and some new standards that have been adopted by the NCST.

We encourage you and your school district to participate in this program. Please read the following eligibility and funding criteria about the program:

• Eligibility: Public Local Education Agencies (LEAs) and fleets/private bus vendors operating on behalf of LEAs to purchase school buses
• Funding: $4.9 million split between multiple parts of funding, which include electric school buses, charging infrastructure, project start-up costs for EVSE and facility planning, and school district technician training. 
• Up to $1 million per Grantee. 
• The incremental cost being covered for the purchase of an ESB and diesel bus is being evaluated now and will be published once the program launches. 

The Maryland Energy Administration is planning educational webinars that will go over the grant program basics: such as funding, eligibility, and previously awarded projects, and changes from FY25. Dates for the webinars will be announced once available and we look forward to the opportunity to share this information.

For more, please refer to the program webpage or contact Natalie Buscemi, Transportation Program Manager, at transportation.mea@maryland.gov or 410-537-4071.