| | The language in this bill is unclear and depending on interpretation this may negatively impact school districts financially. Currently, the bill says "any school bus purchased on or after January 1, 2006....must be equipped to use biodiesel fuel". Further in paragraph (b)(ii) the language says "unless the school bus is not equipped to use biodiesel". It is assumed that this langauge is alluding to the fact that many districts purchase "used" school buses; however, there is not a clear definition as to whether or not the language in (b)(ii) includes flexibility to purchase a "used" school bus that is gasoline powered on or after January 1, 2006 whether or not they would be required to retrofit the bus for biodiesel due to the fact that retrofitting costs for biodiesel would be sizable. Type 1 (big yellow school buses which have a gross weight of more than 10,000 pounds) were manufactured with both gasoline and diesel engines through 2002. After 2002, Type 1 buses were only manufactured with diesel engines. Currently, only the "mini" Type II buses (mini school buses which have a gross weight of 10,000 pounds or less) are being produced with gasoline powered engines. The proposed language is silent on whether a Type I or Type II school bus is being purchased. Hypothetically, districts could purchase "used" Type I or Type II gasoline powered school buses over the next 10 years due to turnover and replacement of current buses. In addition, ISBE must be cognizant of "supply and demand" when it comes to costs for biodiesel. Biodiesel is available in only limited markets and in those areas where it is available, the requirement in paragraph (b)(a) mandates the use of biodiesel. This will most certainly increase the price of biodiesel due to law of supply and demand. This in turn would increase the claimable amount to the state and escalate reimbursement costs. A concern is that using a diodiesel blend invalidates the manufacturer's engine warranty in many cases. The current price for regular #2 biodiesel fuel, which is used by most all school buses, is approximately $2.15 per gallon; the cost for biodiesel fuel (B11) is approximately $2.05 per gallon due to the fact that sales tax is elimiated by running the B11 blend. |