A state agency is allocating grant funding to replace older diesel school buses.

The Minnesota Pollution Control Agency (MPCA) announced that it is offering over $1.7 million to replace the state’s aging diesel buses with new, cleaner diesel, propane, or natural gas models, according to a news release from the agency. This is reportedly the third round of grant funding for cleaner-fuel buses, created due to an increasing demand by school districts and bus companies across Minnesota.

As previously reported, in August 2020, the MPCA announced that it was awarding up to $3 million in funding from the state’s Volkswagen (VW) mitigation settlement allotment for one to two electric school bus projects — each in four different regions of the state.

The new round of grants, which are also supported by Minnesota's share of VW funds, are divided into two categories based on location:

• In Greater Minnesota, 40% (approximately $680,000) of funds are dedicated to replacing school buses.

• In the Twin Cities area, 60% (approximately $1,020,000) of funds are dedicated to replacing school buses.

The maximum award per school bus is $15,000, or $20,000 for school districts where 40% or more of the students are eligible for free or reduced-cost lunch, according to the MPCA.

Applications are due on September 10. For more information, go to the grants web page.