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 for each fiscal year to
1.13 	the ethanol development program under this section, or from
1.14 	other appropriated money, the commissioner shall make up to two
1.15 	grants, each in an amount not exceeding $50,000, to qualified
1.16 	applicants proposing to do research on ways to improve fuel
1.17 	system materials compatibility and to improve the energy
1.18 	efficiency of burning ethanol or ethanol fuel blends in motor
1.19 	vehicles while meeting all requirements for control of tailpipe
1.20 	emissions.  A grant recipient may receive funding for no more
1.21 	than three consecutive years.  A research project must be
1.22 	matched by $1 of nonstate 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 	Of the amount appropriated in Laws 2003, chapter 128,
2.6 	article 3, section 2, subdivision 4, $100,000 is appropriated in
2.7 	fiscal year 2006 and $100,000 is appropriated in fiscal year
2.8 	2007 to the commissioner of agriculture for grants to ethanol
2.9 	efficiency research studies under Minnesota Statutes, section
2.10 	41A.09, subdivision 9.

2.11 	Sec. 4. EFFECTIVE DATE.
 2.12 	Section 1 is effective July 1, 2005.  Sections 2 and 3 are
2.13 	effective the day following final enactment.