SENATE, No. 228

STATE OF NEW JERSEY

219th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION

 


 

Sponsored by:

Senator  PATRICK J. DIEGNAN, JR.

District 18 (Middlesex)

Senator  M. TERESA RUIZ

District 29 (Essex)

 

Co-Sponsored by:

Senator Weinberg

 

 

 

 

SYNOPSIS

     Requires EDA to establish loan program for certain costs of electric-powered school bus purchases by local school districts and school bus contractors.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

 


An Act concerning loans for certain costs of electric-powered school bus purchases and supplementing P.L.1974, c.80 (C.34:1B-1 et seq.).

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    As used in P.L.    , c.    (C.        ) (pending before the Legislature as this bill):

     “Authority” means the New Jersey Economic Development Authority established pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4).

     “Incremental costs” means the difference between the total costs of purchasing an electric-powered school bus and associated electric charging and service equipment and the total costs of purchasing a diesel or gasoline-powered school bus of like-kind.

     “Local school district” shall have the same meaning as provided in section 3 of P.L.1991, c.393 (C.18A:12-23).

     “School bus” shall have the same meaning as provided in R.S.39:1-1.

     “School bus contractor” means a business that has entered into a contract with a local school district to transport children to and from a primary or secondary school of the local school district.

 

     2.    a.     The New Jersey Economic Development Authority, in consultation with the Department of Education and the New Jersey Motor Vehicle Commission, shall develop and administer a loan program to facilitate the acquisition of electric-powered school buses by local school districts and school bus contractors.

     b.    A local school district or school bus contractor applying for a loan pursuant to this section shall apply to the authority, in a form and manner as determined by the authority, and an application shall include such information as the authority determines is necessary in consideration of the provisions of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

     c.     The authority shall review each complete application and approve any application that meets the requirements of this section and the rules and regulations adopted pursuant to section 3 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

     d.    The authority shall enter into a loan agreement with a local school district or school bus contractor that has received application approval, pursuant to subsection c. of this section.  Under the loan agreement, the authority shall only provide a loan for the incremental costs to a local school district or school bus contractor of purchasing electric-powered school buses for use by a local school district or school bus contractor.  A loan under this section shall bear interest at rates and terms deemed appropriate by the authority and shall contain other terms and conditions considered appropriate by the authority that are consistent with the purposes of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) and with the rules and regulations adopted by the authority pursuant to section 3 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

     e.     The authority may, either through the adoption of rules and regulations, or through the terms of the loan agreement made pursuant to subsection d. of this section, establish terms governing the incidence of default by a local school district or school bus contractor that receives a loan under the program administered pursuant to P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

 

     3.    The New Jersey Economic Development Authority, in consultation with the Department of Education and the New Jersey Motor Vehicle Commission, shall, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), promulgate rules and regulations to effectuate the purposes of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

 

     4.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill requires the New Jersey Economic Development Authority (authority), in consultation with the Department of Education and the New Jersey Motor Vehicle Commission, to develop and administer a loan program to facilitate the acquisition of electric-powered school buses by local school districts and school bus contractors.  The authority is to enter into a loan agreement with a local school district or school bus contractor that has received loan program application approval.  Under the loan agreement, the authority is to provide a loan for the cost differential to a local school district or school bus contractor of purchasing an electric-powered school bus instead of a diesel or gasoline-powered school bus of like-kind for use by the local school district or school bus contractor.  Under the bill, a loan is to bear interest at rates and terms deemed appropriate by the authority and contain other terms and conditions considered appropriate by the authority that are consistent with the purposes of the bill and with the rules and regulations adopted by the authority to administer the loan program.

Requires EDA to establish loan program for certain costs of electric-powered school bus purchases by local school districts and school bus contractors.