The bill establishes an "Air Ventilation Improvement and Geothermal Infrastructure for Schools Financing Program" under the Minnesota Climate Innovative Finance Authority. This program aims to provide low-interest financing to school districts for enhancing air ventilation systems and installing geothermal energy systems in or near school buildings. The program prioritizes funding for schools in communities with high poverty rates, ensures a balanced distribution of projects between metropolitan and non-metropolitan areas, and aims to reduce the overall costs of implementing qualified projects while developing consumer protection standards for financial support.

Additionally, the bill appropriates funds from both the general fund and the renewable development account to support this initiative in fiscal year 2026. It specifies that any unutilized funds by June 30, 2027, will be canceled and returned to the respective accounts. The eligibility for financing is limited to independent school districts, special school districts, and cooperative units as defined in Minnesota statutes.