The proposed bill establishes a new Propane School Bus Deployment Program under Minnesota Statutes, section 216C.3741, aimed at promoting the use of propane-fueled school buses. The program defines key terms such as "propane school bus," "eligible applicant," and "prioritized school district," which includes districts with significant poverty levels or those serving Indian land. The bill outlines the eligible expenditures for grants, which can cover up to 50% of the costs for prioritized school districts and includes provisions for purchasing propane storage and dispensing equipment. The commissioner of commerce is tasked with developing the application process, providing technical assistance, and prioritizing grant awards for eligible applicants.

Additionally, the bill appropriates $4,000,000 from the general fund for the program in fiscal year 2026, which will be available until June 30, 2028. To fund this initiative, the bill cancels a previous appropriation of $4,000,000 designated for electric school bus grants. The commissioner is also required to report annually to legislative committees on the grants awarded under this program. The effective date of the bill is set for the day following its final enactment.