Oklahoma Lawmakers Approve $40M Bioenergy Center, Cut EDGE

Oklahoma is one step closer to positioning itself as a leader in sustainable energy production, with the creation of a $40 million Bioenergy Center. The legislature passed SB 510 at the close of the 2007 session last month, establishing the Oklahoma Bioenergy Center announced by Gov. Brad Henry during his State-of-the-State Address earlier this year (see the Feb. 19, 2007 issue of the Digest).

 

The Bioenergy Center is a joint collaboration between the University of Oklahoma, Oklahoma State University and the Noble Foundation. The institution will coordinate the state’s resources and research programs in the fields of biofuels and bioenergy development and production utilizing a $10 million annual appropriation over the next four years. Research efforts will focus on sustainable economic production of cellulosic ethanol and developing critical steps in production of biodiesel and ethanol from non-cellulosic sources.

 

The center’s fiscal year 2008 appropriation will be channeled through the state’s lead TBED agency, the Oklahoma Center for the Advancement of Science and Technology (OCAST). The total OCAST budget for FY08 is $28.9 million, including surplus monies added throughout the year. OCAST will receive $6 million in surplus funds specifically for the Bioenergy Center. An additional $4 million from the OCAST budget also is directed to the center.

 

From the OCAST budget, $500,000 is directed to a Biofutures Institute in Tulsa and $350,000 is set aside for research equipment. Additionally, HB 1105, a spillover bill distributing excess revenues after the state’s maximum reserve balance is met, calls for $500,000 for OCAST to use to provide seed capital funding, a sharp decline from last year’s funding level of $5 million. The agency’s traditional programs will be funded at current levels.

 

Legislators also approved a $50 million increase of the authorization for endowed chairs at Oklahoma colleges and universities and $16.5 million for capital projects at the University of Oklahoma, Oklahoma State University and regional universities, including the state’s Cancer Center. Department of Commerce appropriations for FY08 include $250,000 for the Oklahoma Alliance for Manufacturing Excellence and $300,000 for the creation of a Small Rural Manufacturers Program at Oklahoma State University.

 

Lawmakers did not allocate funding for two of the governor’s major economic development initiatives. Gov. Henry’s proposed budget included $50 million to the Economic Development Generating Excellence endowment fund and $15 million to the Opportunity Fund from surplus general revenue funds. Both initiatives were funded last year (see the June 26, 2006 issue of the Digest).

 

The budget awaits Gov. Henry’s anticipated signature.