MN SF4364

Public utilities may file programs with the Public Utilities Commission to promote electric school bus deployment in their service territories.

Program elements may include utility rebates to school districts for the incremental cost difference between electric and fossil-fuel-powered buses, and utility deployment of charging infrastructure on school district property.

School districts receiving rebates must contract with the utility to accept all operating liability, maintain and repair the bus, and grant the utility an option to own the retired battery.

Commission must approve, modify, or reject proposals within 180 days based on likelihood to accelerate electric school bus deployment (particularly in areas with poor air quality) and reduce greenhouse gas and particulate emissions.

Utilities may place prudent and reasonable infrastructure investments in their rate base to earn a rate of return, and the commission may approve tariff mechanisms to automatically adjust annual charges for program implementation costs.