Minnesota Approves Energy Initiative, Funding for TBED

Funding for energy and TBED initiatives were highlighted in the fiscal year 2007-09 biennial budget at the close of the legislative session in Minnesota late last month. Winning nearly unanimous approval from the legislature was Gov. Tim Pawlenty’s Next Generation Initiative announced during his State-of-the-State Address (see the Jan. 15, 2007 issue of the Digest).

 

The $170 million Agriculture and Veterans Omnibus Bill, which provides funding for the initiative, creates the Next Generation Energy Board to research and recommend how the state can most efficiently achieve energy independence. The bill also focuses on Minnesota’s 25x'25 goal, similar to the national 25x'25 initiative. Minnesota energy companies are required under the bill to provide 25 percent of electricity from renewable sources by 2025. The goal also aims for agriculture, forestry and working lands to produce 25 percent of the total energy consumed in Minnesota and expand the Fuel Replacement Goal to 25 percent by 2025. Other major components include:

• $4.25 million for a renewable energy research pool that includes $1.25 million to continue Clean Energy Resource Teams and $2 million for plug-in hybrid electric vehicles and other automotive technology demonstrations, such as E85 conversion kit testing;
• $3 million for the E85 Everywhere initiative to double the number of E85 pumps in the state;
• $1.4 million in Next Generation Energy Grants for biofuels and biomass research, including the creation of a biomass fuel supply depot in LeSueur or Scott County and a feasibility study of renewable forest resources by the Bois Forte Band of Chippewa;
• $1 million in 25x’25 grants for on-farm biogas recovery facilities or methane digesters and another $1 million to continue the state’s rebate program;
• An aggressive energy saving goal for Minnesotans to reduce use of fossil-fuel by 15 percent by 2015; and,
• A goal of 1,000 certified Energy Star commercial buildings in the state by 2010.

To ensure Minnesota achieves maximum economic benefits from enhanced renewable energy activities, the bill calls for the commissioners of the Minnesota Department of Employment and Economic Development (DEED), Agriculture, Commerce and the Public Utilities Commission to develop a strategy that focuses on this goal.



The FY 2007-09 Budget appropriates $49.2 million for the Business and Community Development Division within DEED over the biennium. Included in this amount is a one-time appropriation of $1.75 million to the BioBusiness Alliance of Minnesota for bioscience business development programs to promote and position the state as a global leader in bioscience business activities. Additional programs receiving funding, include:

• $750,000 for a one-time appropriation to Minnesota Technology Inc. to support its small business growth acceleration program;
• $250,000 in FY08 for the University Enterprise Laboratories to support early-stage and emerging bioscience companies;
• $200,000 over the biennium to help small businesses access federal funds through the Small Business Innovation Research and Small Business Technology Transfer programs; and
• $125,000 in FY08 to develop and operate a bioscience business marketing program to market Minnesota bioscience business and business opportunities to other states and countries.     

The legislature also approved new regional Math and Science Academies to provide professional development for all teachers and enhancements of statewide Science, Technology, Engineering and Math initiatives.



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