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"Additionally, the policy states that transgender student athletes may also be granted permission to use banned substances deemed required for hormone therapy ...."
In other words, actual girls "transitioning" to ersatz maleness will be allowed to take testosterone and other anabolic steroids.
Those drugs would give the wannabe trannie girls a huge unfair advantage over undoped competitors. That's why steroids, and other performance-enhancing drugs are banned in competitions.
These rules are likely to result in many female H.S. athletes taking P.E.D.s, just to have a hope of competing against all the males and doped-up girls. That might get them sports scholarships to universities; but, they would not be qualified to compete in the Olympics, etc.