"Todd Watkins had no idea he’d become famous because of a school bus transaction."

Todd Watkins had no idea he’d become famous because of a school bus transaction.

Watkins made headlines as the Director of Transportation for Montgomery Public Schools in Maryland when he decided to replace his district’s diesel school buses with cleaner, electric ones. Unbeknownst to him, the contract he signed with Highland Electric Transportation in February to lease 326 vehicles for four years and eventually replace the whole 1,422 vehicle fleet turned out to be the single largest purchase of electric school buses in the United States...

...Watkins’ district reached a budget-neutral agreement thanks to a fixed-cost finance approach in which the community pays an average of $43,000 per bus each year for the equipment’s 12-year lifespan rather than paying the whole cost upfront. On the other hand, Highland Electric pays all additional costs, from energy to maintenance, and reaps the advantages of any government incentives and decreased fuel costs associated with electrification. Watkins hopes to spread the news about this strategy to other schools or parties that are interested...

https://mysteriousofscience.com/new-the-maryland-school-system-converted-to-electric-buses/

"Highland has been working for nine months on plans to equip the five bus depots it’s targeting for charging loads" [9 months prior to Feb. 2021 would be Before RFP Issued by MCPS]

 MCPS Request for Proposal for Electric School Buses: 

https://www.montgomeryschoolsmd.org/departments/procurement/uploads/9462.1/RFP%209462.1%20Electric%20Buses%20-%20General%20Conditions.pdf

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Article on Highland Electric evaluating MCPS bus depots: 

Highland Electric Raises $235M, Lands Biggest Electric School Bus Contract in the US

FEBRUARY 25, 2021

Electric school buses don’t just eliminate the carbon and pollution emissions of their diesel-fueled counterparts; they also cost less to fuel and maintain over the long haul. 

Unfortunately for cash-strapped school districts, the upfront cost to purchase an electric school bus is still more than twice as much as the cost of a diesel bus today. And that’s not counting the cost of new charging infrastructure or the risk that those charging costs may drive a district’s electric bills through the roof. 

Highland Electric Transportation says it can remove those barriers for school districts and transit authorities by taking on the financing and management of an EV school bus fleet in exchange for a fixed annual leasing fee...

...The cost of that service, $169 million, will be spread out over 16 years, and will fit into the existing budget structures for its existing diesel bus fleet, said Todd Watkins, the district’s transportation director. After seven years of budget-neutrality, the contract will end up saving the district money compared to what it could have expected to spend on its existing bus fleet, he said. 

And the district won’t be stuck with the uncertainties of what it will cost to install charging stations, pay for the electricity they use or keep the buses running, because all of that is Highland’s responsibility. 

While the district did have access to a small amount of upfront electrification funds from the Volkswagen “Dieselgate” settlement, Watkins said he is “not a huge fan of grant-supported pilot programs in any area, because if you can’t sustain it, it’s too risky.”..

...For example, Highland has been working for nine months on plans to equip the five bus depots it’s targeting for charging loads that will eventually grow to 5 megawatts apiece, he said. It ended up prioritizing one depot first, based on the relatively lower cost of connecting it to the existing utility grid infrastructure. The other four depots will be equipped over the next 18 months.

Four of those depots are served by utility Pepco, and the fifth is served by Allegheny Power...

https://www.greentechmedia.com/articles/read/on-heels-of-253m-raise-highland-electric-lands-biggest-electric-school-bus-contract-in-the-u.s

Under the agreement, Highland and its project partners... will electrify all five of MCPS’ bus depots [Even the Shady Grove Depot that is supposed to move one day?]

Proterra Press Release

...Under the agreement, Highland and its project partners, including Thomas Built Buses, Proterra, and Annapolis-based American Bus, will electrify all five of MCPS’ bus depots, supplying the electric school buses and charging infrastructure along with services including managed charging. Highland will purchase buses manufactured in North Carolina by Thomas Built Buses, which will be supplied and serviced by American Bus. Both companies have been long-time trusted suppliers and partners for the MCPS Department of Transportation. Designed, engineered, and manufactured in the United States by Thomas Built Buses, the all-electric Saf-T-Liner C2 Jouley school bus is powered by Proterra’s electric vehicle technology platform. The Jouley couples 226 kWh of total energy capacity with a Proterra Powered drivetrain to offer an industry-leading operating range of up to 135 miles on a single charge to meet the needs of school bus fleets...

https://www.proterra.com/press-release/montgomery-county-approves-largest-electric-school-bus-order/

Vendor DID Get a MD Grant, But Jack Smith Told Board of Education: "As far as MCPS and the vendor know, this is the first budget neutral, non-grant dependent, school bus fleet electrification plan available."

Non-grant dependent? The vendor was awarded a grant from the State of Maryland the very next day. The grant had been applied for weeks earlier.

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February 23, 2021

Montgomery County Board of Education

Contract Approval for RFP No. 9462.1 Electrification of School Buses

...On August 31, 2020, MCPS issued a Request for Proposals for turn-key, budget neutral, electrification of the school bus fleet. Highland Electric Transportation, Inc., Hamilton, Massachusetts, was the offeror selected following the Request for Proposals evaluation process.

A contract has been negotiated and is recommended for approval with HET MCPS, LLC, a wholly owned subsidiary created by Highland Electric Transportation, Inc., specifically for this project.

Budget neutrality is possible over time because this vendor will invest in the otherwise high up-front costs of purchasing electric school buses with the plan to recoup that investment over time through decreasing vehicle prices, less expensive fuel (electric vs. diesel), and maintenance savings. MCPS will continue to spend what otherwise would be spent purchasing, operating, fueling, and maintaining equivalent diesel school buses until the investment is recouped.

Then MCPS will spend less than what otherwise would be spent on equivalent diesel buses.

As far as MCPS and the vendor know, this is the first budget neutral, non-grant dependent, school bus fleet electrification plan available. This is the leading edge of the trend that is expected to sweep through the school bus industry...

https://go.boarddocs.com/mabe/mcpsmd/Board.nsf/files/BYJNVV6118CC/$file/ADOPTED%20Cont%20Apprv%20RFP%209462.1%20Electrification%20Sch%20Buses.pdf

The Day After the Board of Education Voted on an Electric Bus Deal, MD Energy Admin Announced Award of $817,000 to Winning Bidder.

Press Release:  

New Maryland Clean Fuels Incentive Program “Greens” Transportation Sector $1.3 Million Awarded to Five Organizations; Largest Electric School Bus Deployment

February 24, 2021

FOR IMMEDIATE RELEASE
Contact: Kaymie Owen, CMP
kaymie.owen@maryland.gov 443-694- 3651

Baltimore, MD – The Clean Fuels Incentive Program (CFIP)​, created and managed by the Maryland Energy Administration (MEA), supports both the purchase of fleet alternative fuel vehicles and funding to expand the state’s alternative fueling infrastructure and reduce greenhouse gas emissions via proven technology. The CFIP is designed to permanently “green” Maryland’s transportation profile, which will improve air quality by reducing consumption of fossil fuels. The fiscal year 2021 (FY21) CFIP awards of $1.3M will fund an array of clean fuel projects across the state, including one of the largest electric school bus deployments in the country.

“The Clean Fuels Incentive Program expands Maryland’s alternative transportation sector and benefits both our environment and economy,” began Dr. Mary Beth Tung, MEA Director. “With this program, we bring Maryland the first electric school buses and first electric step vans, plus add emission-reduced propane vehicles and build upon our electric vehicle (EV) charging infrastructure.” 

Highland Electric Transportation (HET) provides electric school bus services, including acquisition, vehicle financing, maintenance, fueling/charging, and charge equipment management to school districts across the country. HET will use their FY21 award of $817,000 to purchase 19 electric school buses, one of the largest deployments of electric school buses in the U.S., that will be used by the Montgomery County Public School district. Use of these electric busses is expected to displace over 520,000 gallons of petroleum and reduce greenhouse gas (GHG) emissions by 50% over the lifetime of the buses.

...

The transportation sector is responsible for the majority of Maryland’s greenhouse gas emissions, according to the Maryland Greenhouse Gas Emissions Reduction Act Plan. Efforts like CFIP help reduce emissions while also reducing fuel and maintenance costs for fleets. The FY21 CFIP is a competitive program that was fully subscribed in its first year. Click here to learn more about CFIP. 

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The Maryland Energy Administration (MEA) advises the governor and general assembly on all energy matters, promoting affordable, reliable and cleaner energy. MEA develops and administers programs and policy to support and expand all sectors of the state’s economy while benefiting all Marylanders and implementing legislation. For more information about the Maryland Energy Administration, visit www.Energy.Maryland.gov and follow us on Facebook, Twitter and LinkedIn.

https://news.maryland.gov/mea/2021/02/24/new-maryland-clean-fuels-incentive-program-greens-transportation-sector-1-3-million-awarded-to-five-organizations-largest-electric-school-bus-deployment/

MCPS Electric Bus Deal: County Exec. Marc Elrich Introduced Company to MCPS. Delegate Fraser-Hidalgo Introduced Elrich to Company.

-February 27, 2021

...Montgomery County Executive Marc B. Elrich (D) said he brought school system transportation and Highland Electric officials together after meeting the company’s CEO, Duncan McIntyre, in Annapolis.

The two had been introduced by Del. David Fraser-Hidalgo (D-Montgomery), a longtime proponent of electric buses.

In talking with McIntyre, Elrich became convinced that tax credits and depreciation allowances were starting to shift the economics... surrounding electric buses in a significant way...

https://www.marylandmatters.org/2021/02/27/montgomery-school-system-deal-to-lease-electric-buses-called-historic/

The MCPS Electric Bus Deal: "The small, three-year-old company currently has only one school bus on the road."

 

February 24, 2021

...Montgomery County’s first 25 electric buses will begin operating this fall, followed by 61 buses in 2022 and then 120 in each of the two years after that. Spread across five bus depots, Montgomery ranks among the 10 largest school bus fleets in the country...

...The small, three-year-old company currently has only one school bus on the road. But this month it raised $253 million from venture capital firms.

Highland plans to buy its vehicles from Thomas Built Buses, a North Carolina subsidiary of Daimler Benz, and use batteries made by California-based Proterra. Proterra says its school bus batteries can completely recharge in three hours...

https://www.washingtonpost.com/climate-solutions/2021/02/24/climate-solutions-electric-schoolbuses/?commentID=f49391cb-a269-4180-ac6e-8e247ec18d28

Investigation Prompts Leave for Two Maryland Transportation Directors

The top transportation directors in Maryland’s largest school district are now on leave pending a criminal investigation by local police.

Todd Watkins, director of the transportation department at Montgomery County Public Schools (MCPS), and assistant director Charles Ewald were placed on leave after the district reported “allegations of possible financial improprieties,” according to an official statement released by the school system.

“We take these allegations very seriously, and as a result, we immediately contacted the police to investigate,” the statement said. “We are not able to share additional details while the investigation is proceeding.”..

https://www.schoolbusfleet.com/10156263/investigation-prompts-leave-for-two-maryland-transportation-directors?utm_source=dlvr.it&utm_medium=twitter