(2) Approved transportation costs shall be estimated for the year of distribution.
(3) In determining approved transportation costs, the State Board of Education:
(a) Shall include depreciation of original cost to the school district of district-owned buses, not in excess of 10 percent per year;
(b) Shall include the costs to repower, retrofit or replace school buses powered by diesel engines for the purpose of reducing or eliminating diesel engine emissions, except that the board may not include the costs paid with moneys received from the state by a school district from the Clean Diesel Engine Fund under ORS 468A.801 (2)(a) to repower, retrofit or replace school buses powered by diesel engines for the purpose of reducing or eliminating diesel engine emissions; and
(c) Shall include costs to school buses powered by diesel engines as allowed in the Environmental Mitigation Trust Agreement, except that the board may not include costs paid from the Environmental Mitigation Trust Agreement in the calculation of the transportation grant computed as provided in ORS 327.013.
(4) School districts shall account separately for those funds received from the State School Fund attributable to the costs included under subsection (3) of this section, and expenditure of those funds shall be limited as follows:
(a) The expenditure of funds attributable to costs under subsection (3)(a) of this section shall be limited to the acquisition of new buses.
(b) The expenditure of funds attributable to costs under subsection (3)(b) and (c) of this section shall be limited to the costs to repower, retrofit or replace school buses powered by diesel engines for the purpose of reducing or eliminating diesel engine emissions.
(5) The transportation grant computed as provided in ORS 327.013 when combined with costs paid from the Environmental Mitigation Trust Agreement to replace school buses powered by diesel engines may not exceed the purchase price of the buses for which the funds described in this subsection were received. [1991 c.780 §7a; 2007 c.855 §3; 2009 c.458 §1; 2017 c.742 §13]