Purpose of the Bill

The bill aims to establish the Propane School Bus Deployment Program in Minnesota. This initiative is designed to support the acquisition of propane-fueled school buses, thus promoting cleaner energy sources and reducing environmental impact.

Main Provisions

• Propane School Buses: The program supports the purchase of school buses that run on propane, a cleaner alternative to diesel.
• Eligible Applicants: School districts or transportation service providers can apply for grants on behalf of school districts.
• Grant Coverage: Grants may cover up to 25% of the cost for purchasing propane buses. For prioritized districts, such as those with higher poverty levels, the grants can cover up to 50% of purchase and equipment costs.
• Prioritization: Districts with higher poverty rates, those in remote rural areas, and those receiving federal aid for students living on Indian land are prioritized for these grants.

Significant Changes to Existing Law

• The bill introduces a new provision within the Minnesota Statutes, specifically Chapter 216C, to facilitate the transition to propane school buses.
• It redirects previously allocated funds for electric school buses to this propane bus initiative, repurposing $4,000,000 for fiscal year 2026 to support the program.

Application and Reporting

• The state will administer a bi-annual application process for districts to apply for grants.
• School districts need to demonstrate their financial need and readiness to incorporate propane buses for at least five years.
• An annual report on the allocation and utilization of the grants is required, which will be submitted to relevant legislative committees.

Technical Assistance

• The bill mandates the provision of technical assistance to school districts, aiding them in applying for and managing the deployment of propane school buses.

Funding and Appropriation

• A one-time appropriation of $4,000,000 from the general fund is allocated for program implementation, available until June 30, 2028.
• Cancellation of $4,000,000 initially designated for electric school bus grants is set for June 29, 2025, reallocating those funds to support the propane bus initiative.

Relevant Terms

• Propane school bus
• School district
• Transportation service provider
• Grant
• Prioritized school district
• Propane storage and dispensing equipment