Purpose of the Bill

The purpose of this bill is to establish a program that supports the deployment of propane-fueled school buses in Minnesota. It also involves appropriating funds for the program and requiring annual reporting on its progress.

Main Provisions

• Propane School Bus Deployment Program: The bill introduces a grant program to help school districts and transportation providers purchase propane school buses, which are vehicles that use propane as fuel and are used to transport students.

• Eligible Applicants and Priority:

  • School districts or transportation service providers can apply for grants.
  • Priority is given to districts with a high percentage of students living in poverty or those in rural and remote areas. Schools run by or serving Indigenous communities also receive priority.

• Grant Funding:

  • Grants may cover up to 25% of the purchase cost of new propane buses for general applicants.
  • Prioritized districts can receive grants covering up to 50% of purchase costs.
  • Grants can also cover up to 50% of costs for new propane storage and dispensing equipment.

• Application Process:

  • The bill requires the commissioner to develop procedures for applying for the grants.
  • Applications must include detailed information about the intended propane bus purchases, the financial need of the district, and readiness to operate the buses for at least five years.

• Technical Assistance and Reporting:

  • The department will provide technical assistance to school districts for the development and execution of projects funded by these grants.
  • An annual report regarding the grant awards and their implementation is required to be submitted to the relevant legislative committees.

Significant Changes to Existing Law

• A new section in Minnesota Statutes will be introduced specifically to outline and support the propane school bus deployment program.
• The bill reallocates $4,000,000 from canceled electric school bus grant appropriations to fund the propane school bus deployment program.

Relevant Terms

propane school bus, grant program, school district, transportation service provider, prioritized school district, rural remote, Bureau of Indian Affairs, general fund appropriation, propane storage, dispensing equipment, technical assistance.