SF 1824

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to agriculture; establishing the NextGen Energy Board; appropriating
money for development of renewable energy technology; proposing coding for
new law in Minnesota Statutes, chapter 41A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [41A.10] NEXTGEN ENERGY.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose; appropriation. new text end

new text begin It is the goal of the state through the
Department of Agriculture to research and develop energy sources to displace fossil
fuels with renewable technology. The state shall invest $9,000,000 each fiscal year
from 2010 to 2020 to devise and implement the next generation of biofuels. Of the
annual appropriation, $6,000,000 is dedicated to financing and investment incentives and
$3,000,000 is dedicated to direct payments to facilities producing biofuels.
new text end

new text begin Subd. 2. new text end

new text begin NextGen Energy Board. new text end

new text begin There is created a NextGen Energy Board
consisting of the commissioners of agriculture, commerce, the Pollution Control Agency,
and employment and economic development; two members of the senate appointed by
the majority leader; and two members of the house of representatives appointed by the
speaker of the house. A member may designate another to represent the member.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The board shall research and report to the commissioner of
agriculture and to the legislature recommendations as to how the state can invest the
appropriations under subdivision 1 to most efficiently achieve energy independence.
The board shall:
new text end

new text begin (1) examine the future of fuels, such as synthetic gases, biobutanol, hydrogen,
methanol, diesel, and ethanol within Minnesota;
new text end

new text begin (2) develop equity grant programs to assist locally owned facilities;
new text end

new text begin (3) study the proper role of the state in creating financing and investing and
providing incentives;
new text end

new text begin (4) evaluate how state and federal programs, including the Farm Bill, can best work
together and leverage resources; and
new text end

new text begin (5) report to the legislature before February 1 each year with recommendations as
to appropriations and results of past actions and projects.
new text end

new text begin Subd. 4. new text end

new text begin Commissioner's duties. new text end

new text begin The commissioner of agriculture shall administer
this section.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $5,000,000 in fiscal year 2008 and $5,000,000 in fiscal year 2009 are appropriated
from the general fund to the commissioner of agriculture for grants to promote the
installation of gasification technologies and to lessen dependency on fossil energy. This
appropriation is available until spent. For the purpose of this paragraph, "gasification"
means the conversion of a feedstock (biomass) to a combustible gas. The process is
completed via thermal decomposition of organics in the absence of or with very small
amounts of air. Grants must be awarded by the commissioner of agriculture according
to the recommendations of a panel consisting of six people with expertise related to the
subject who shall examine applications. Each of the following individuals shall appoint
a member to the panel:
new text end

new text begin (1) commissioner of agriculture;
new text end

new text begin (2) commissioner of commerce;
new text end

new text begin (3) commissioner of employment and economic development;
new text end

new text begin (4) commissioner of the Pollution Control Agency;
new text end

new text begin (5) the majority leader of the senate; and
new text end

new text begin (6) the speaker of the house.
new text end

new text begin Grants must be awarded in a competitive process adopted by the commissioner with
advice from the panel. A grant must pay up to 20 percent of the total project cost, with a
minimum of $50,000 and a maximum of $500,000 award to each applicant. At least 25
projects must be granted. Investor cost-share must be at least 50 percent and applicant's
facilities must be at least 51 percent Minnesota-owned. Projects must have a qualified
engineer certification on the technology and fuel source. Grantees shall provide reports at
the request of the commissioner. The commissioner's costs in administering the program
may be paid from the appropriation.
new text end