S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5268
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               March 1, 2021
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Education
 
 AN ACT to amend the education law and the tax law, in relation to allow-
   ing for reimbursement of school districts for the purchase or lease of
   electric school buses

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative Findings. The Legislature hereby finds that New
 York  State  has an interest in lessening the effects of climate change,
 as demonstrated by the passage of the Climate Leadership  and  Community
 Protection  Act  (CLCPA).  The Legislature finds that fuel combustion in
 the transportation sector is the largest contributor (36%) of greenhouse
 gas emissions in the state. The  Legislature  further  finds  that  most
 school  buses  in use today emit harmful diesel exhaust, contributing to
 air pollution and its resulting health effects.  The  Legislature  finds
 that  often,  the effects of these emissions are felt disproportionately
 by disadvantaged communities. The Legislature further finds  that  there
 are  over 300 school districts using bus contractors across the state to
 transport students. The Legislature further finds that New  York  school
 bus  contractors transport over two million children a day. The Legisla-
 ture further finds that the operating and maintenance costs of  electric
 buses are much lower than diesel buses--potentially saving schools thou-
 sands of dollars per year. The Legislature hereby declares that there is
 an  interest  in  electrifying  school transportation to garner the many
 widespread benefits of such  action,  including  local  diesel  emission
 reductions, reduced operating and maintenance costs for schools, and the
 overall  reduction of greenhouse gas emissions as required by law and to
 fight against climate change.
   § 2. Subdivision 1 of section 3623-a of the education law  is  amended
 by adding a new paragraph g to read as follows:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04911-01-1
              

 S. 5268                             2
 
   G. ALL COSTS INCURRED AS RELATED TO THE INSTALLATION OF ELECTRIC VEHI-
 CLE  CHARGING  STATIONS,  INCLUDING  THE COST OF ACQUIRING SUCH ELECTRIC
 VEHICLE CHARGING INFRASTRUCTURE, AND THE COSTS OF ELECTRICITY FOR CHARG-
 ING ELECTRIC VEHICLES USED FOR THE AIDABLE TRANSPORTATION OF PUPILS.
   § 3. Subparagraph 1 of paragraph b of subdivision 7 of section 3602 of
 the  education  law, as amended by section 17 of part B of chapter 57 of
 the laws of 2007, is amended to read as follows:
   (1) For the purposes of this  apportionment,  approved  transportation
 operating  expense  shall be the actual expenditure incurred by a school
 district and approved by the commissioner (i) for those items of  trans-
 portation  operating  expense allowable under subdivision one of section
 thirty-six hundred twenty-three-a of this article  for  regular  aidable
 transportation  of  pupils as such terms are defined in sections thirty-
 six hundred twenty-one and thirty-six hundred twenty-two-a of this arti-
 cle, EXCEPT THAT FOR THOSE ITEMS RELATED TO THE INSTALLATION OF ELECTRIC
 VEHICLE CHARGING STATIONS AS SET OUT IN PARAGRAPH G OF  SUBDIVISION  ONE
 OF  SECTION  THIRTY-SIX  HUNDRED  TWENTY-THREE-A,  A SCHOOL DISTRICT MAY
 APPLY TO THE NEW YORK STATE ENERGY RESEARCH  AND  DEVELOPMENT  AUTHORITY
 (NYSERDA) FOR GRANTS TO COVER SUCH COSTS, FOLLOWING RULES PROMULGATED BY
 NYSERDA,  ANY  SUCH  GRANT  MONEY  SHALL  NOT  BE USED FOR ANY DEDUCTION
 RELATED TO APPORTIONMENT UNDER THIS  SUBDIVISION,  and  (ii)  for  those
 items  of  transportation  operating expense allowable under subdivision
 one of section thirty-six hundred twenty-three-a of this article for the
 transportation required or authorized pursuant to article eighty-nine of
 this chapter, and (iii) for  providing  monitors  on  school  buses  for
 students  with  disabilities,  and  (iv)  for  transportation  operating
 expenses allowable under section thirty-six  hundred  twenty-three-a  of
 this  article  for the transportation of homeless children authorized by
 paragraph c of subdivision four of section thirty-two  hundred  nine  of
 this  chapter, provided that the total approved cost of such transporta-
 tion shall not exceed the amount of the total cost of the most  cost-ef-
 fective mode of transportation.
   §  4. Subdivision 7 of section 3602 of the education law is amended by
 adding a new paragraph f to read as follows:
   F. IN ADDITION TO ANY OTHER APPORTIONMENT UNDER THIS SUBDIVISION,  FOR
 THE  TWO  THOUSAND  TWENTY-ONE--TWO  THOUSAND TWENTY-TWO SCHOOL YEAR AND
 EVERY SCHOOL YEAR THEREAFTER THROUGH  THE  TWO  THOUSAND  THIRTY  SCHOOL
 YEAR, A SCHOOL DISTRICT SHALL BE ELIGIBLE FOR AN INCENTIVE APPORTIONMENT
 FOR  THE  PURCHASE  OR  LEASE  OF  ONE  OR MORE ELECTRIC SCHOOL BUSES OR
 CONTRACT WITH A PROVIDER TO USE ELECTRIC SCHOOL BUSES FOR TRANSPORTATION
 OF SUCH SCHOOL DISTRICT'S STUDENTS. THE AMOUNT OF SUCH INCENTIVE  APPOR-
 TIONMENT  UNDER THIS PARAGRAPH SHALL BE EQUAL TO: (I) TEN PERCENT OF THE
 ACTUAL COST FOR EACH ELECTRIC SCHOOL BUS, WHETHER PURCHASED,  LEASED  OR
 CONTRACTED,  FOR A SCHOOL DISTRICT WHICH RECEIVES BETWEEN TWENTY PERCENT
 AND THIRTY-FIVE PERCENT OF ITS TOTAL REVENUE FROM STATE AID AS  REPORTED
 IN  THE  MOST  RECENT  FISCAL PROFILE PRODUCED BY THE COMMISSIONER; (II)
 FIFTEEN PERCENT OF THE ACTUAL COST FOR EACH ELECTRIC SCHOOL BUS, WHETHER
 PURCHASED, LEASED OR CONTRACTED, FOR A SCHOOL  DISTRICT  WHICH  RECEIVES
 BETWEEN  THIRTY-FIVE  AND  SIXTY PERCENT OF ITS TOTAL REVENUE FROM STATE
 AID AS REPORTED IN THE  MOST  RECENT  FISCAL  PROFILE  PRODUCED  BY  THE
 COMMISSIONER; AND (III) TWENTY PERCENT OF THE ACTUAL COST FOR EACH ELEC-
 TRIC  SCHOOL  BUS, WHETHER PURCHASED, LEASED OR CONTRACTED, FOR A SCHOOL
 DISTRICT WHICH RECEIVES BETWEEN SIXTY AND NINETY PERCENT  OF  ITS  TOTAL
 REVENUE  FROM  STATE  AID  AS REPORTED IN THE MOST RECENT FISCAL PROFILE
 PRODUCED BY THE COMMISSIONER. FOR  THE  PURPOSES  OF  THIS  SUBDIVISION,
 ELECTRIC  SCHOOL  BUS SHALL MEAN A SCHOOL BUS THAT IS PROPELLED BY ELEC-

 S. 5268                             3
 
 TRIC MOTOR AND ASSOCIATED POWER ELECTRONICS WHICH  PROVIDE  ACCELERATION
 TORQUE  TO  THE  DRIVE WHEELS DURING NORMAL VEHICLE OPERATIONS, AND THAT
 DRAWS ELECTRICITY FROM A HYDROGEN FUEL CELL OR BATTERY.
   §  5.  Subdivision  (a)  of  section 1115 of the tax law is amended by
 adding a new paragraph 46 to read as follows:
   (46) OMNIBUSES, AS SUCH TERM IS DEFINED IN ARTICLE ONE OF THE  VEHICLE
 AND  TRAFFIC  LAW THAT ARE PROPELLED BY AN ELECTRIC MOTOR AND ASSOCIATED
 POWER ELECTRONICS WHICH PROVIDE ACCELERATION TORQUE TO THE DRIVE  WHEELS
 DURING  NORMAL  VEHICLE  OPERATIONS,  AND  THAT DRAWS ELECTRICITY FROM A
 HYDROGEN FUEL CELL OR BATTERY PROVIDED SUCH OMNIBUSES ARE  OUTFITTED  IN
 ACCORDANCE WITH SUBDIVISION TWENTY OF SECTION THREE HUNDRED SEVENTY-FIVE
 OF  THE  VEHICLE AND TRAFFIC LAW, AND ARE USED TO TRANSPORT SCHOOL CHIL-
 DREN BY A CARRIER CONTRACTED BY A NEW  YORK  STATE  SCHOOL  DISTRICT  OR
 OPERATING  PURSUANT  TO  A CERTIFICATE OF AUTHORITY ISSUED  BY  THE  NEW
 YORK  STATE COMMISSIONER OF TRANSPORTATION OR BY AN  APPROPRIATE  AGENCY
 OF  THE  STATE  OF  NEW YORK OR THE UNITED STATES. WHERE  RECEIPTS  FROM
 THE  SALE  OF OR CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN  FOR  THE
 PURCHASE OF AN OMNIBUS OR OTHER  PROPERTY HAS  BEEN  EXEMPTED UNDER THIS
 PARAGRAPH, SUCH RECEIPTS OR CONSIDERATION SHALL NOT ALSO QUALIFY FOR THE
 REFUND  OR CREDIT DESCRIBED IN SUBDIVISION (B) OF SECTION ELEVEN HUNDRED
 NINETEEN OF THIS ARTICLE; WHERE ANY OR ALL OF THE TAX ON  RECEIPTS  FROM
 THE   SALE   OF  OR CONSIDERATION  GIVEN  OR CONTRACTED  TO BE GIVEN FOR
 THE PURCHASE OF AN OMNIBUS OR OTHER PROPERTY HAS BEEN REFUNDED OR  CRED-
 ITED  UNDER  SUCH SUBDIVISION   (B),   NO   PART   OF SUCH  RECEIPTS  OR
 CONSIDERATION  SHALL BE EXEMPT UNDER THIS PARAGRAPH.
   § 6. Subparagraph i of subdivision 25 of section 1709 of the education
 law, as added by chapter 472 of the laws of 1998, is amended to read  as
 follows:
   i.  In addition to the authority granted in paragraph e of this subdi-
 vision, the board of education shall be  authorized  to  lease  a  motor
 vehicle or vehicles to be used for the transportation of the children of
 the district from sources other than a school district, board of cooper-
 ative  educational services or county vocational education and extension
 board under the conditions specified in this paragraph. No  such  agree-
 ment for the lease of a motor vehicle or vehicles shall be for a term of
 more  than  one  school year, provided that when authorized by a vote of
 the qualified voters of the district such lease may have a term of up to
 five years AND UP TO TEN YEARS FOR  ELECTRIC  SCHOOL  BUSES.  Where  the
 board  of education enters a lease of a motor vehicle or vehicles pursu-
 ant to this paragraph for a term of one school year or less, such  board
 shall  not  be  authorized to enter into another lease of the same or an
 equivalent replacement vehicle or vehicles, as determined by the commis-
 sioner, without obtaining approval of the voters.
   § 7. Subparagraph (ii) of paragraph 1 of subdivision  (a)  of  section
 1210 of the tax law, as amended by section 2 of part WW of chapter 60 of
 the laws of 2016, is amended to read as follows:
   (ii) Any local law, ordinance or resolution enacted by any city, coun-
 ty  or  school  district, imposing the taxes authorized by this subdivi-
 sion, shall omit the residential  solar  energy  systems  equipment  and
 electricity  exemption  provided for in subdivision (ee), the commercial
 solar energy systems equipment and electricity exemption provided for in
 subdivision  (ii),  the  commercial  fuel  cell  electricity  generating
 systems  equipment and electricity generated by such equipment exemption
 provided  for  in  subdivision  (kk),  THE  ELECTRIC  OMNIBUS  EXEMPTION
 PROVIDED FOR IN PARAGRAPH FORTY-SIX OF SUBDIVISION (A) OF SECTION ELEVEN
 HUNDRED FIFTEEN OF THIS CHAPTER, and the clothing and footwear exemption

 S. 5268                             4
 
 provided  for  in  paragraph thirty of subdivision (a) of section eleven
 hundred fifteen of this chapter, unless  such  city,  county  or  school
 district  elects  otherwise  as to such residential solar energy systems
 equipment  and  electricity  exemption,  such  commercial  solar  energy
 systems equipment and electricity exemption, commercial fuel cell  elec-
 tricity  generating  systems equipment and electricity generated by such
 equipment exemption, THE ELECTRIC  OMNIBUS  EXEMPTION  PROVIDED  FOR  IN
 PARAGRAPH FORTY-SIX OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN
 OF THIS CHAPTER, or such clothing and footwear exemption.
   §  8.  This  act shall take effect immediately; provided however, that
 sections five and seven of this act shall take effect on the  first  day
 of  a  sales  tax  quarterly  period, as described in subdivision (b) of
 section eleven hundred thirty-six of the tax law, beginning at least one
 hundred twenty days after the date this act shall have become a law  and
 shall apply to sales made on or after such date.