1.1 	A bill for an act
1.2 	relating to environment; establishing grant program for assisting public transit 
1.3 	agencies in Minnesota with efforts to reduce diesel pollution;proposing coding 
1.4 	for new law in Minnesota Statutes, chapter 116.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [116.935] PUBLIC TRANSIT AGENCY DIESEL POLLUTION 
1.7 	REDUCTION GRANTS.
1.8 		Subdivision 1.Authority and eligibility. The commissioner may award a grant 
1.9 	to any public transit agency in Minnesota for the purchase and installation costs of any 
1.10 	equipment or fuel that results in decreased diesel pollution from transit vehicles, including 
1.11 	but not limited to grants of up to 25 percent of the cost to purchase a hybrid bus.
1.12 		Subd. 2.Grants. (a) Grant funds may be used by the recipient to purchase and 
1.13 	install equipment or fuel or to purchase hybrid buses, if those purchases and installations 
1.14 	will result in decreased emissions of one or more air contaminants from the bus on which 
1.15 	it is installed or used or decreased energy use by the bus.
1.16 	(b) The grant program in this section shall be implemented only if the agency 
1.17 	receives federal funding under subdivision 3.
1.18 		Subd. 3.Federal funds. The agency must submit an application or work with one or 
1.19 	more public transit agencies in Minnesota to assist in the submission of an application to 
1.20 	the federal Environmental Protection Agency for competitive grant funds made available 
1.21 	under the federal Diesel Emission Reduction Act's National, Smartway or Emerging 
1.22 	Technology Clean Diesel Grant Program, as specified in the American Recovery and 
1.23 	Reinvestment Act of 2009, Public Law 111-5. The application must request funding for 
1.24 	equipment or fuel proposed to be used by public transit agencies to reduce diesel pollution 
2.1 	or to reduce energy use. Any funds awarded to the agency as a result of the application 
2.2 	must be expended on the grant program described in this section.

2.3 	EFFECTIVE DATE. This section is effective the day following final enactment.