Bill
HF 4706
Minnesota will provide grants to buy propane school buses, prioritizing high-need districts, with cost-sharing and reporting requirements to support deployment.
Jurisdiction: Minnesota
Purpose
- Establish a propane school bus deployment program to support the purchase and use of propane-fueled school buses.
- Direct funding through grants to school districts and transportation service providers, with emphasis on districts facing higher needs and poverty levels.
- Require reporting on grants and outcomes, and set conditions for onetime appropriations from specific funds.
Key Provisions
1) New Law Created
- Adds Minnesota Statutes, chapter 216C, section 374.1: Propane School Bus Deployment Program.
- Defines core terms:
- Eligible applicant: a school district or transportation service provider applying for a grant on behalf of a school.
- Prioritized school district: districts meeting one or more criteria, including high poverty, rural remote/distant locale, Bureau of Indian Affairs (BIA) funding, or funding under Title 20 for children on Indian land.
- Propane school bus: a propane-fueled bus designed to carry a driver plus more than ten passengers, used primarily to transport preK–12 students.
- Transportation service provider: contract-based bus operator for a school district.
- Other terms: school, school district, and related definitions aligned with Minnesota statutes.
2) Application Process
- The Commissioner of Commerce must:
- Develop administrative procedures for applying and awarding grants.
- Issue a request for proposals (RFP) to eligible applicants.
- Require applications to include: number and description of propane buses; total cost and incremental cost vs. other buses; whether the district is prioritized; areas serving many students eligible for free/reduced-price meals; plan to deploy propane buses in those areas; demonstrated need for financial assistance; readiness to implement and operate buses for at least five years; and any other relevant information.
- Administer an open application process at least twice annually.
3) Technical Assistance
- The Department of Commerce must provide technical assistance to help districts develop and implement funded projects.
4) Grant Awards
- Priority given to prioritized districts; at least 40% of total grant funding should go to prioritized districts when awards are made.
- Grant amounts depend on assessed need for financial assistance.
- Grants cannot exceed the total cost of the propane buses funded by the grant.
5) Eligible Expenditures Under the Grant
- Funds may be used to:
- Purchase one or more propane school buses.
- Cover up to 25% of the cost to purchase propane buses (general rule).
- For prioritized districts, up to 50% of bus costs.
- Up to 50% of the cost to purchase new propane storage and dispensing equipment.
6) Reporting
- Beginning July 1, 2027, and annually through July 1, 2031, the Commissioner must report to the Chairs and Ranking Minority Members of the relevant energy committees on grants awarded and amounts disbursed in the prior year.
7) Cancellations (Related Funding Wind-Down)
- Provisions to cancel unencumbered amounts from prior electric school bus grant programs if not encumbered by specified dates (June 29, 2026), aligning with wind-down of certain existing programs.
8) Appropriations and Funding Sources
- Sec. 3(a): A one-time general fund appropriation in FY 2026 for the propane school bus deployment program (amount to be determined in the bill’s final version), available until June 30, 2029.
- Sec. 3(b): A one-time appropriation from the Renewable Development Account (FY 2026) to the program, available until June 30, 2029. Amounts to be determined.
Effective Date
- The act (both the program authorization and appropriations) would take effect the day after final enactment.
Impact and Beneficiaries
Timeline and Reporting
- Applications accepted at least twice yearly.
- Ongoing annual reporting on grant activity from 2027 through 2031.
- One-time appropriations effective in FY 2026, with funds available through mid-2029.
Notes
- The exact dollar amounts for appropriations are not specified in the text provided (placeholders indicate amounts to be filled in).
- The bill emphasizes prioritizing investments in higher-need districts and ensuring schools have a five-year operational readiness commitment.
Compiled from official sources — confirm details with the bill’s official record.
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