The proposed bill establishes the Propane School Bus Deployment Program in Minnesota, which aims to support the purchase of propane-fueled school buses by school districts and transportation service providers. The bill defines key terms related to the program, including "propane school bus," "eligible applicant," and "prioritized school district," which includes districts with high poverty rates or those serving Indian land. The program will provide grants to cover a portion of the costs associated with purchasing propane school buses and necessary storage and dispensing equipment, with prioritized funding for districts that meet specific criteria.

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. It also cancels a previous appropriation for electric school bus grants to reallocate those funds to the propane program. The commissioner of commerce is tasked with developing the application process, providing technical assistance, and reporting annually to legislative committees on the grants awarded. The bill emphasizes the importance of supporting school districts in transitioning to cleaner fuel options for student transportation.