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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1019*
HOUSE BILL 1019
M3, R2 6lr1667
HB 1269/25 – ENT
By: Delegates Howard and Buckel
Introduced and read first time: February 9, 2026
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
School Bus Transition – Propane–Powered School Buses – Grant Program, 2
Fund, and Purchase 3
FOR the purpose of altering certain provisions of law relating to funding and grants for 4
transitioning to zero –emission vehicle school buses to include propane –powered 5
school buses; authorizing a county board of education, beginning in a certain fiscal 6
year, to enter into a new contract for the purchase of school buses that are 7
propane–powered; and generally relating to propane–powered school buses. 8
BY repealing and reenacting, with amendments, 9
Article – Environment 10
Section 2 –1501 through 2 –1505 to be under the amended subtitle “Subtitle 15. 11
Zero–Emission Vehicle and Propane–Powered School Buses” 12
Annotated Code of Maryland 13
(2013 Replacement Volume and 2025 Supplement) 14
BY repealing and reenacting, without amendments, 15
Article – State Finance and Procurement 16
Section 6–226(a)(2)(i) and (ii) 17
Annotated Code of Maryland 18
(2021 Replacement Volume and 2025 Supplement) 19
BY repealing and reenacting, with amendments, 20
Article – State Finance and Procurement 21
Section 6–226(a)(2)(iii)112. 22
Annotated Code of Maryland 23
(2021 Replacement Volume and 2025 Supplement) 24
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25
That the Laws of Maryland read as follows: 26
2 HOUSE BILL 1019
Article – Environment 1
Subtitle 15. Zero–Emission Vehicle AND PROPANE–POWERED School Buses. 2
2–1501. 3
(a) In this subtitle the following words have the meanings indicated. 4
(b) “Fund” means the Zero–Emission Vehicle AND PROPANE–POWERED School 5
Bus Transition Fund. 6
(c) “Program” means the Zero –Emission Vehicle AND PROPANE–POWERED 7
School Bus Transition Grant Program. 8
(d) “Zero–emission vehicle” has the meaning stated in § 23 –206.4 of the 9
Transportation Article. 10
2–1502. 11
The Department and the Department of Transportation jointly shall provide 12
technical assistance to county boards of education and entities that contract with county 13
boards to provide transportation services for transitioning to the use of school buses that 14
are zero–emission vehicles OR ARE PROPANE–POWERED throughout the State. 15
2–1503. 16
(a) There is a Zero –Emission Vehicle AND PROPANE–POWERED School Bus 17
Transition Grant Program in the State. 18
(b) The purpose of the Program is to provide grants to county boards of education 19
and entities that contract with county boards to provide transportation services to: 20
(1) Purchase school buses that are [zero–emission]: 21
(I) ZERO–EMISSION vehicles; OR 22
(II) PROPANE–POWERED; 23
(2) Install electric vehicle infrastructure for charging school buses that are 24
zero–emission vehicles; 25
(3) Engage in pla nning for a transition to using school buses that are 26
zero–emission vehicles; and 27
(4) Fund pilot programs to experiment with a transition to school buses 28
that are zero–emission vehicles. 29
HOUSE BILL 1019 3
(c) The Department, in consultation with the State Department of Education, 1
shall implement and administer the Program. 2
(d) (1) If the Department receives any funds as a result of a legal settlement 3
that are earmarked for the purpose of transitioning to school buses that are zero–emission 4
vehicles OR PROPANE–POWERED, the funds shall be made available to award grants in 5
accordance with this section. 6
(2) In addition to any funding provided under paragraph (1) of this 7
subsection, funding for the Program consists of: 8
(i) Money appropriated in the State budget for the Program; and 9
(ii) Any additional money made available to the Program from any 10
private or public sources. 11
(e) The Department may adopt regulations to implement this section. 12
2–1504. 13
(a) There is a Zero –Emission Vehicle AND PROPANE–POWERED School Bus 14
Transition Fund. 15
(b) The purpose of the Fund is to provide funding for the Program. 16
(c) The Department, in consultation with the State Department of Education, 17
shall administer the Fund. 18
(d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 19
the State Finance and Procurement Article. 20
(2) The State Treasurer shall hold the Fund separately, and the 21
Comptroller shall account for the Fund. 22
(e) The Fund consists of: 23
(1) Money appropriated in the State budget to the Fund; 24
(2) Interest earnings of the Fund; 25
(3) Donations; 26
(4) Money derived from legal settlements earmarked for the purpose of 27
transitioning to school buses that are zero –emission vehicles OR ARE 28
PROPANE–POWERED; and 29
4 HOUSE BILL 1019
(5) Any other money from an y other source accepted for the benefit of the 1
Fund. 2
(f) The Fund may be used only for the Program. 3
(g) (1) The State Treasurer shall invest the money of the Fund in the same 4
manner as other State money may be invested. 5
(2) Any interest earnings of the Fund shall be credited to the Fund. 6
(h) Expenditures from the Fund may be made only in accordance with the State 7
budget. 8
(i) Money expended from the Fund for the Program is supplemental to and is not 9
intended to take the place of funding that otherwise would be appropriated for the Program. 10
2–1505. 11
(a) In this section, “incremental costs” means: 12
(1) In the case of a contract for the purchase of school buses, the cost 13
difference between purchasing and operating school buses that are zero–emission vehicles 14
OR THAT ARE PROPANE –POWERED and school buses that are diesel –powered vehicles; 15
and 16
(2) In the case of a contract for the use of school buses, the cost difference 17
between contracting for the use of school buses that are zero –emission vehicles OR THAT 18
ARE PROPANE–POWERED and school buses that are diesel–powered vehicles. 19
(b) (1) Except as provided in subsection (c) of this section AND SUBJECT TO 20
PARAGRAPH (2) OF THIS SUBSECTION, beginning in fiscal year 2025, a county board of 21
education may not enter into a new contract for: 22
[(1)] (I) The purchase of any school bus that is not a zero –emission 23
vehicle; or 24
[(2)] (II) The use of any school bus that is not a zero –emission vehicle, 25
unless the school bus has an in–service date of July 1, 2024, or before. 26
(2) BEGINNING IN FISCAL Y EAR 2030, A COUNTY BOARD OF 27
EDUCATION MAY ENTER INTO A NEW CON TRACT FOR THE PURCHA SE OF SCHOOL 28
BUSES THAT ARE PROPANE–POWERED. 29
(c) The requirements of subsection (b) of this section do not apply if: 30
HOUSE BILL 1019 5
(1) The Department determines that no available zero –emission OR 1
PROPANE–POWERED vehicle meets the performance requirements for the county board’s 2
use; or 3
(2) The county board is unable to obtain federal, State, or private funding 4
sufficient to cover the incremental costs associated with contracting for the purchase or use 5
of school buses that are zero–emission vehicles OR THAT ARE PROPANE–POWERED. 6
(d) A county board may enter into an agreement with an electric company to 7
obtain monetary incentives in exchange for allowing the electric company to use the storage 8
batteries of zero–emission buses owned or operated by the county board to access the stored 9
electricity through vehicle–to–grid technology. 10
(e) The Department, in consultation with other appropriate State agencies, shall 11
work with the county boards and private school bus contractors to develop electric ve hicle 12
infrastructure sufficient to support school buses that are zero–emission vehicles. 13
(f) The Department shall prioritize the use of available federal funding to carry 14
out this section. 15
Article – State Finance and Procurement 16
6–226. 17
(a) (2) (i) This paragraph does not apply in fiscal years 2024 through 2028. 18
(ii) Notwithstanding any other provision of law, and unless 19
inconsistent with a federal law, grant agreement, or other federal requirement or with the 20
terms of a gift or settlement agreement, net interest on all State money allocated by the 21
State Treasurer under this section to special funds or accounts, and otherwise entitled to 22
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 23
Fund of the State. 24
(iii) The provisions of subparagraph ( ii) of this paragraph do not 25
apply to the following funds: 26
112. the Zero –Emission Vehicle AND PROPANE–POWERED 27
School Bus Transition Fund; 28
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 29
October 1, 2026. 30