HF 3286

Introduction - 94th Legislature (2025 - 2026)

Posted on 05/01/2025 10:07 a.m.

A bill for an act
relating to energy; establishing the propane school bus deployment program;
appropriating money; requiring a report; 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) "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 (c) "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 (d) "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 (e) "Propane" has the meaning given in section 216B.02, subdivision 3a.
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 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. 3. 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) areas of 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. 4. 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. 5. 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. 6. new text end

new text begin Application deadline. new text end

new text begin An application must not be submitted under this section
after ........
new text end

new text begin Subd. 7. new text end

new text begin Reporting. new text end

new text begin Beginning ......., and each year thereafter until ......., 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 APPROPRIATION.
new text end

new text begin $4,000,000 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, 2028.
new text end

Sec. 3. new text begin CANCELLATION.
new text end

new text begin $4,000,000 of the general fund appropriation from Laws 2023, chapter 60, article 10,
section 2, subdivision 2, paragraph (q), for electric school bus grants is canceled on June
29, 2025.
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