Plain English Breakdown
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HF4706 • 2026
Propane school bus deployment program established, report required, and money appropriated.
Propane school bus deployment program established, report required, and money appropriated.
Education
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Bill History
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2026-03-25
House
Introduction and first reading, referred to Energy Finance and Policy
Official Summary Text
Propane school bus deployment program established, report required, and money appropriated.
Current Bill Text
Read the full stored bill text
A bill for an act relating to energy; establishing the propane school bus deployment program; requiring a report; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 216C. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. new text begin [216C.3741] PROPANE SCHOOL BUS DEPLOYMENT PROGRAM. new text end new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms have the meanings given. new text end new text begin (b) "Eligible applicant" means a school district or transportation service provider applying for a grant under this section on behalf of a school district. new text end new text begin (c) "Prioritized school district" means: new text end new text begin (1) a school district listed in the United States Census Bureau's Small Area Income and Poverty Estimates School District Estimates as having 7.5 percent or more students living in poverty, based on the most recent decennial United States census; new text end new text begin (2) a school district identified with locale codes "43-Rural: Remote" and "42-Rural: Distant" by the National Center for Education Statistics; new text end new text begin (3) a school district funded by the Bureau of Indian Affairs; or new text end new text begin (4) a school district that receives basic support payments under United States Code, title 20, section 7703(b)(1), for children who reside on Indian land. new text end new text begin (d) "Propane" has the meaning given in section 216B.02, subdivision 3a. new text end new text begin (e) "Propane school bus" means a propane-fueled vehicle: new text end new text begin (1) designed to carry a driver and more than ten passengers; and new text end new text begin (2) primarily used to transport preprimary, primary, and secondary students. new text end new text begin (f) "School" means a school that operates as part of an independent or special school district. new text end new text begin (g) "School bus" has the meaning given in section 169.011, subdivision 71. new text end new text begin (h) "School district" means: new text end new text begin (1) an independent school district, as defined in section 120A.05, subdivision 10; or new text end new text begin (2) a special school district, as defined in section 120A.05, subdivision 14. new text end new text begin (i) "Transportation service provider" means a person that has a contract with a school district to transport students to and from school. new text end new text begin Subd. 2. new text end new text begin Application process. new text end new text begin (a) The commissioner must develop administrative procedures governing the application and grant award process. new text end new text begin (b) The commissioner must issue a request for proposals to eligible applicants who may wish to apply for a grant under this section on behalf of a school. new text end new text begin (c) An eligible applicant must submit an application for a propane school bus deployment grant to the commissioner on a form prescribed by the commissioner. The form must require an applicant to supply, at a minimum, the following information: new text end new text begin (1) the number and a description of the propane school buses the school district or transportation service provider intends to purchase; new text end new text begin (2) the total cost to purchase the propane school buses and the incremental cost, if any, of the propane school buses when compared with other school buses; new text end new text begin (3) whether the school district is a prioritized school district; new text end new text begin (4) a description of areas in the school district that serve significant numbers of students eligible for free and reduced-price school meals; new text end new text begin (5) the school district's plan to prioritize the deployment of propane school buses in areas of the school district that serve students eligible for free and reduced-price school meals; new text end new text begin (6) information that demonstrates the school district's level of need for financial assistance available under this section; new text end new text begin (7) information that demonstrates the school district's readiness to implement the project and to operate the propane school buses for no less than five years; and new text end new text begin (8) any other information deemed relevant by the commissioner. new text end new text begin (d) The commissioner must administer an open application process under this section at least twice annually. new text end new text begin Subd. 3. new text end new text begin Technical assistance. new text end new text begin The department must provide technical assistance to school districts to develop and execute projects applied for or funded by grants awarded under this section. new text end new text begin Subd. 4. new text end new text begin Grant awards. new text end new text begin (a) When awarding grants under this section, the commissioner must (1) give priority to applications from or on behalf of prioritized school districts, and (2) endeavor to award a minimum of 40 percent of the total amount of grants awarded under this section to prioritized school districts. new text end new text begin (b) When making grant awards under this section, the amount of the grant must be based on the commissioner's assessment of the school district's need for financial assistance. new text end new text begin (c) A grant awarded under this section must not exceed the total cost of the propane school buses funded by the grant. new text end new text begin Subd. 5. new text end new text begin Eligible grant expenditures. new text end new text begin A grant awarded under this section may be used only to pay: new text end new text begin (1) a school district or transportation service provider to purchase one or more propane school buses; new text end new text begin (2) up to 25 percent of the cost a school district or transportation service provider incurs to purchase one or more propane school buses; new text end new text begin (3) for prioritized school districts, up to 50 percent of the cost a school district or transportation service provider incurs to purchase one or more propane school buses; or new text end new text begin (4) up to 50 percent of the cost to purchase new propane storage and dispensing equipment. new text end new text begin Subd. 6. new text end new text begin Reporting. new text end new text begin Beginning July 1, 2027, and each year thereafter until July 1, 2031, the commissioner must report to the chairs and ranking minority members of the legislative committees with jurisdiction over energy regarding the grants and amounts awarded to school districts under this section during the previous year. new text end Sec. 2. new text begin CANCELLATIONS. new text end new text begin (a) The unencumbered amount of the general fund appropriation in Laws 2023, chapter 60, article 10, section 2, subdivision 2, paragraph (q), for electric school bus grants, estimated to be $......., cancels on June 29, 2026. new text end new text begin (b) The unencumbered amount of the renewable development account in the special revenue fund appropriation in Laws 2023, chapter 60, article 11, section 2, subdivision 6, for electric school bus grants, estimated to be $......., cancels on June 29, 2026. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end Sec. 3. new text begin APPROPRIATIONS. new text end new text begin (a) $....... in fiscal year 2026 is appropriated from the general fund to the commissioner of commerce for the propane school bus deployment program under Minnesota Statutes, section 216C.3741. This is a onetime appropriation and is available until June 30, 2029. new text end new text begin (b) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j), $....... in fiscal year 2026 is appropriated from the renewable development account under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce for the propane school bus deployment program under Minnesota Statutes, section 216C.3741. This is a onetime appropriation and is available until June 30, 2029. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end