1.1 	A bill for an act
1.2 	relating to ethanol fuels; establishing a program of
1.3 	small grants to stimulate research on improved
1.4 	combustion of agriculturally derived ethanol in motor
1.5 	vehicle engines; appropriating money; amending
1.6 	Minnesota Statutes 2004, section 41A.09, by adding
1.7 	subdivisions.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2004, section 41A.09, is
1.10 	amended by adding a subdivision to read:
1.11 		Subd. 9.Motor vehicles; ethanol combustion efficiency
1.12 	grants. From within the appropriation in each fiscal year for
1.13 	purposes of this subdivision, the commissioner shall make up to
1.14 	two grants, each in an amount not exceeding $50,000, to
1.15 	qualified applicants proposing to do research on, but not
1.16 	limited to, ethanol's effect on fuel system materials
1.17 	compatibility and ways to improve the energy efficiency of
1.18 	ethanol fuel blends in motor vehicles while meeting all
1.19 	requirements for control of tailpipe emissions.  A grant
1.20 	recipient may receive funding for no more than two consecutive
1.21 	years.  A research project must be matched by $2 of nonstate
1.22 	money for each $3 of state grant money.

1.23 	Sec. 2. Minnesota Statutes 2004, section 41A.09, is
1.24 	amended by adding a subdivision to read:
1.25 		Subd. 10.Guidelines. The commissioner shall establish
1.26 	guidelines not subject to chapter 14 for the submission and
2.1 	review of applications and the awarding of grants under
2.2 	subdivision 9.

2.3 	Sec. 3. APPROPRIATION; ETHANOL EFFICIENCY RESEARCH
2.4 	GRANTS.
 2.5 	$100,000 is appropriated in fiscal year 2006 and $100,000
2.6 	is appropriated in fiscal year 2007 from the general fund to the
2.7 	commissioner of agriculture for grants to ethanol efficiency
2.8 	research studies under Minnesota Statutes, section 41A.09,
2.9 	subdivision 9.

2.10 	Sec. 4. EFFECTIVE DATE.
 2.11 	Section 1 is effective January 1, 2006.  Section 2 is
2.12 	effective the day following final enactment.  Section 3 is
2.13 	effective July 1, 2005.