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SB 1657

SCH CD-TRANSPORT REIMBURSE

104th Regular Session Introduced by Dave Koehler and 1 co-sponsor

Expands state pupil-transport reimbursement to cover electrification-as-a-service contracts for electric buses and charging infrastructure, with 12-year depreciation (8.33%/yr).

Senate Committee Amendment No. 1 Rule 3-9(a) / Re-referred to Assignments
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Bill Summary · SB 1657

Summary — SB 1657 (School Code: Transportation Reimbursement)

Note on versions: Multiple states have a bill numbered SB 1657 with different subjects (e.g., municipal referendums in Arizona; ADC eminent‑domain provisions in Hawaii). This summary focuses on the Illinois version titled in this file “SCH CD‑TRANSPORT REIMBURSE” (introduced in the 2025–2026 General Assembly), which amends Section 29‑5 of the Illinois School Code to address state reimbursement for pupil transportation and to explicitly allow certain electrification costs.

Main purpose

To expand the category of allowable direct transportation costs eligible for State reimbursement to include payments to electrification‑as‑a‑service contractors that provide electric school buses and associated electric vehicle charging infrastructure and services, and to set a specific depreciation allowance for electric school buses and related vehicles used to transport pupils.

Key provisions

  • Adds expenditures to “electrification‑as‑a‑service” contractors to the list of allowable direct costs for State transportation reimbursement (regular, vocational, and special education pupil transportation).
    • Allowed expenditures include contractor services that provide electric school buses or a combination of:
    • electric vehicle charging infrastructure,
    • equipment,
    • daily charge management services,
    • and related charging/vehicle management.
  • Establishes a depreciation allowance of 8.33% per year for 12 years (i.e., straight‑line equivalent) for electric school buses and vehicles approved to transport pupils. This effectively treats the useful life for depreciation/reimbursement purposes as 12 years.
  • A Senate Committee amendment (as filed) provides definitions:
    • “Electric school bus” — a school bus fully powered by electricity stored in a battery pack.
    • “Electric vehicle” — a vehicle powered by an electric motor drawing electricity from a rechargeable battery.
    • “Electrification‑as‑a‑service” — a business model combining services to reduce cost/complexity of transitioning fleets, including impact studies, engineering and installation, equipment procurement, grant writing, charge management, fueling costs, and charger/vehicle management; may include ownership or other financing arrangements.

Who is affected

  • School districts and State‑authorized charter schools that operate pupil transportation systems (regular, vocational, special education).
  • Vendors and contractors offering electrification services, electric school buses, charging infrastructure, and charge-management services.
  • State Board of Education (administration of reimbursement rules).
  • Potential indirect impacts for students and communities as districts consider electrification.

Practical and fiscal impacts

  • Policy: Encourages/lowers barriers for districts to adopt electric buses by making associated costs (including third‑party electrification service models and charging infrastructure) eligible for State reimbursement.
  • Fiscal: Short‑term costs may increase if more districts claim reimbursement for higher upfront electrification expenses; the specified depreciation (8.33%/year over 12 years) spreads vehicle cost recovery over a 12‑year period for reimbursement calculations.
  • Budgetary effect on the State depends on uptake by districts and the volume/amount of reimbursed electrification contracts; no appropriation figures are specified in the bill text.

Procedural status (as provided)

  • Illinois version introduced: February 5, 2025 (sponsor: Sen. Ram Villivalam).
  • Referred to Assignments; received first reading.
  • Companion bills noted in the file (HB 313, HB 1556, HB 2769).
  • A committee amendment was filed that adds the definitions and clarifies the electrification service model.

If you want, I can:
- Extract the exact amended statutory text for Section 29‑5 as it would read after enactment;
- Produce an estimate of potential budgetary impacts using sample district electrification scenarios; or
- Summarize the other SB 1657 variants in Arizona and Hawaii contained in the packet.

Compiled from official sources — confirm details with the bill’s official record.

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