I strongly oppose this policy for a myriad of reasons. I will note several.
All students should be treated with respect. However, this policy goes well beyond preventing transgender students from being bullied to forcing teachers, students, and parents to accommodate behaviors and world views that conflict with their own strongly held convictions and religious beliefs. I also firmly believe this policy will open the door to an increase of sexual harassment and exploitation, especially of girls.
The education of children is primarily the responsibility of the parents. Failure to communicate with parents, especially about issues such as gender identity undermines the responsibility and rights of the parents to teach their children academically, socially, morally, and spiritually and breaks down trust within family relationships.
Most importantly, transgenderism runs counter to God's created order as described in His Word, the Bible, and therefore should not be encouraged.