1.1 	A bill for an act
1.2 	relating to transportation; providing a grant program to encourage the purchase of 
1.3 	electric buses; appropriating money.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. ELECTRIC BUS GRANT PROGRAM.
 1.6 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
1.7 	the meanings given.
1.8 	(b) "Commissioner" means the commissioner of transportation.
1.9 	(c) "Electric bus" means a motor vehicle:
1.10 	(1) used to transport persons;
1.11 	(2) designed to carry more than 15 passengers, including the driver; and
1.12 	(3) that meets the definition of "electric motor vehicle" in Minnesota Statutes, section 
1.13 	169.011, subdivision 26a, paragraph (a).
1.14 	(d) "Electric vehicle charging station" means infrastructure that recharges an electric 
1.15 	vehicle's batteries by connecting the electric vehicle to:
1.16 	(1) a level 2 charger that provides a 240-volt alternating current power source; or
1.17 	(2) a DC fast charger that has an electric output of 20 kilowatts or greater.
1.18 		Subd. 2.Establishment. The commissioner must establish an electric bus grant program 
1.19 	in the Department of Transportation to provide financial assistance to encourage the purchase 
1.20 	of electric buses.
2.1 		Subd. 3.Eligible applicants. A transit provider eligible to receive financial assistance 
2.2 	under Minnesota Statutes, section 174.24 or 473.388, is eligible to file an application for a 
2.3 	grant under this section.
2.4 		Subd. 4.Application. An applicant seeking a grant under this section must submit an 
2.5 	application to the commissioner on a form developed by the commissioner. The commissioner 
2.6 	must develop procedures to (1) solicit and review applications, and (2) make grant awards 
2.7 	under this section.
2.8 		Subd. 5.Eligible expenditures. Grant awards made under this section must be used 
2.9 	only to:
2.10 	(1) assist the purchase of an electric bus by paying the difference between the cost of 
2.11 	an electric bus and a comparable nonelectric bus;
2.12 	(2) purchase and install an electric vehicle charging system for an electric bus funded 
2.13 	by a grant award made under this section; and
2.14 	(3) pay the Department of Transportation's reasonable costs to administer this section.
2.15 		Subd. 6.Grant award; preference. When awarding grants, the commissioner must 
2.16 	give preference to applications in which the electric utility providing electric service to the 
2.17 	location the proposed electric bus operates from has made a commitment to pay the cost of 
2.18 	one or more electric vehicle charging stations intended for use by an electric bus funded by 
2.19 	a grant award made under this section.
2.20 		Subd. 7.Limitation. The commissioner must not award more than ... grants under this 
2.21 	section to a single applicant.

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

2.23 	Sec. 2. APPROPRIATION.
 2.24 	$20,000,000 in fiscal year 2021 is appropriated from the general fund to the commissioner 
2.25 	of transportation for the purpose of administering the electric bus grant program described 
2.26 	in section 1. This is a onetime appropriation. This appropriation is available until December 
2.27 	30, 2023.