FISCAL NOTE

Date Requested: February 02, 2023
Time Requested: 02:43 PM

3348	Amendment	HB3201
Agency:	Education, WV Department of
CBD Number:	Version:	Bill Number:	Resolution Number:
CBD Subject:	Motor Vehicles

FUND(S):

0317

Sources of Revenue:

General Fund N/A

Legislation creates:

Increases Existing Expenses

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

This legislation, in its current form, will have fiscal impact on the WVDE of approximately $61,979 annually. We were unable to quantify the cost related to certain other portions of the proposed legislation; however, there are certain provisions of the legislation that the WVDE lacks the data to calculate an accurate estimate for legislative review.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2023 Increase/Decrease (use"-")	2024 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	61,979	61,979
Personal Services	0	0	0
Current Expenses	0	61,979	61,979
Repairs and Alterations	0	0	0
Assets	0	0	0
Other	0	0	0
2. Estimated Total Revenues	0	0	0

Explanation of above estimates (including long-range effect):

This proposed legislation would increase the Public-School Support Plan (PSSP) allowance for alternative fuel buses. This allowance is calculated partly based on total miles driven by alternative fuel type buses by adding an additional 10% allowance for reimbursement of transportation-related operation, maintenance, and contracted services expenditures. Currently, the alternative fuel allocation to all county boards of education is $123,955; however, the provisions of this legislation, increases the percentage by 5% to 15% which is expected to increase the transportation-related service expenditure to $185,934. Please note, the allowance provided for alternative fuel buses could change after clarification of legislative intent regarding this proposed legislation. Specifically, the bill summary states the proposed legislation is intended to include electric-powered school buses in the county allowance and increases the allowance by five percent for school bus systems manufactured in WV; however, the summary appears to be different from the actual provisions of this bill. Additionally, line 16 of the proposed legislation reads “that is manufactured within the State of West Virginia.” WVDE believes the current bill language could be interpreted to include only those electric buses whose batteries were manufactured in WV are eligible for the additional allowance. Further, it is unclear if the intent is to provide an additional allowance for the entirety of the bus fleet that is made up of electric powered buses or for only those electric powered buses that are manufactured in WV. In either case, WVDE is unable to estimate an additional cost due to lack of available data.

Memorandum

As mentioned above, the stipulation “that is manufactured within the State of West Virginia” is too vague to determine if the provision applies to electric powered buses or buses with a just the battery/other storage devices; therefore, the WVDE recommends the WV Legislature consider amending the bill to clarify the provision. If it is the Legislature’s intent that the provisions of this legislation only apply to buses with batteries purchased from a manufacturer operating in the State, the WVDE does not expect the WVDE would incur any additional cost until a facility is operational and providing the batteries for electric school buses. While there is an electric bus manufacturer expected to start operations in West Virginia this year, the WVDE understands that there have not been any electric buses manufactured at the facility yet. Currently, the WVDE is aware of only one electric bus currently operating (Kanawha County) and that bus was manufactured outside of the State and would not be eligible for alternative fuel funding under the provisions of this bill.

Person submitting Fiscal Note: Samuel E. Pauley
Email Address: sepauley@k12.wv.us