A bill for an act
relating to transit; providing for transition to zero-emission transit buses;
appropriating money; amending Minnesota Statutes 2022, sections 174.24, by
adding a subdivision; 473.388, by adding a subdivision; 473.3927; proposing
coding for new law in Minnesota Statutes, chapter 174.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 174.24, is amended by adding a subdivision
to read:


new text begin Subd. 9. new text end

new text begin Bus procurement. new text end

new text begin Beginning on January 1, 2030, any bus purchased for regular
route bus service or special transportation service, as defined in section 174.29, subdivision
1, by a recipient of financial assistance under this section must be a zero-emission transit
bus, as defined in section 473.3927, subdivision 1a.
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. 2.

new text begin [174.249] ZERO-EMISSION TRANSIT BUSES.
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) "Plan" means the zero-emission transit bus transition plan specified under this section.
new text end

new text begin (c) "Zero-emission transit bus" has the meaning given in section 473.3927, subdivision
1a.
new text end

new text begin Subd. 2. new text end

new text begin Transition plan required. new text end

new text begin (a) The commissioner must develop and maintain
a zero-emission transit bus transition plan.
new text end

new text begin (b) The commissioner must complete the initial plan by February 15, 2025, and revise
the plan at least once every three years following each prior revision.
new text end

new text begin Subd. 3. new text end

new text begin Plan development. new text end

new text begin At a minimum, the plan must:
new text end

new text begin (1) establish guidance and recommendations for transit providers to implement the
transition to a transit bus fleet of exclusively zero-emission transit buses;
new text end

new text begin (2) align with the requirements under section 174.24, subdivision 9;
new text end

new text begin (3) identify methods to coordinate zero-emission transit bus procurement across transit
providers; and
new text end

new text begin (4) contain each of the elements specified in section 473.3927, subdivision 2, clauses
(3) to (12).
new text end

new text begin Subd. 4. new text end

new text begin Consultation. new text end

new text begin In developing and revising the plan, the commissioner must
consult with transit providers, the Metropolitan Council, public utilities, labor organizations,
and other interested entities.
new text end

new text begin Subd. 5. new text end

new text begin Assistance. new text end

new text begin Upon request, the commissioner must provide reasonable technical
assistance to an eligible recipient of financial assistance under section 174.24 to implement
the plan and meet the requirements under section 174.24, subdivision 9.
new text end

new text begin Subd. 6. new text end

new text begin Copy to legislature. new text end

new text begin Upon completion or revision of the plan, the commissioner
must provide a copy to the chairs and ranking minority members of the legislative committees
with jurisdiction over transportation policy and finance.
new text end

new text begin Subd. 7. new text end

new text begin Bus procurement exemptions. new text end

new text begin (a) The commissioner may establish a process
to issue a procurement exemption from the requirements under sections 174.24, subdivision
9; 473.388, subdivision 9; and 473.3927, subdivision 4. An exemption may (1) extend the
commencement date for the respective zero-emission transit bus procurement requirements,
or (2) provide for a zero-emission transit bus procurement percentage or phase-in schedule.
new text end

new text begin (b) An entity that seeks an exemption must submit an application, in the form and manner
specified by the commissioner, that includes:
new text end

new text begin (1) a justification for the exemption;
new text end

new text begin (2) a review of activities related to zero-emission transit bus transition planning;
new text end

new text begin (3) demonstration of efforts to procure zero-emission transit buses and associated
infrastructure;
new text end

new text begin (4) a proposed timeline for full compliance, which must include annual procurement
targets and associated milestones; and
new text end

new text begin (5) information required by the commissioner.
new text end

new text begin (c) The commissioner may only issue a procurement exemption following a determination
that:
new text end

new text begin (1) the applicant has made good faith effort to follow the guidance and recommendations
of the relevant transition plan under this section or section 473.3927; and
new text end

new text begin (2) full compliance with procurement requirements is not feasible within the specified
time period due to technology, infrastructure, bus availability, or other specified and
documented constraints.
new text end

new text begin (d) The commissioner must deny an application for procurement exemption following
a determination that the applicant made inadequate efforts to meet the relevant procurement
requirements.
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.

Minnesota Statutes 2022, section 473.388, is amended by adding a subdivision to
read:


new text begin Subd. 9. new text end

new text begin Bus procurement. new text end

new text begin Beginning on January 1, 2030, any bus purchased for regular
route bus service or special transportation service, as defined in section 174.29, subdivision
1, by a recipient of financial assistance under this section must be a zero-emission transit
bus, as defined in section 473.3927, subdivision 1a.
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. 4.

Minnesota Statutes 2022, section 473.3927, is amended to read:


473.3927 ZERO-