new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Competitive funds" means federal funds awarded to selected applicants based on
the grantor's evaluation of the strength of an application measured against all other
applications.
new text end

new text begin (c) "Disadvantaged community" has the meaning given by the federal agency disbursing
federal funds.
new text end

new text begin (d) "Eligible entity" means an entity located in Minnesota that is eligible to receive
federal funds, as determined by the grantor of the federal funds.
new text end

new text begin (e) "Federal funds" means federal formula or competitive funds available for award to
applicants for energy projects under the Infrastructure Investment and Jobs Act, Public Law
117-58, or the Inflation Reduction Act of 2022, Public Law 117-169.
new text end

new text begin (f) "Formula funds" means federal funds awarded to all eligible applicants on a
noncompetitive basis.
new text end

new text begin (g) "Match" means the amount of state money a successful grantee in Minnesota is
required to contribute to a project as a condition of receiving federal funds.
new text end

new text begin (h) "Political subdivision" has the meaning given in section 331A.01, subdivision 3.
new text end

new text begin (i) "Project" means the activities that an eligible entity awarded federal funds proposed
to undertake.
new text end

new text begin (j) "Tribal government" has the meaning given in section 116J.64, subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Establishment of account; eligible expenditures. new text end

new text begin (a) A state competitiveness
fund account is created in the special revenue fund of the state treasury. The commissioner
must credit to the account appropriations and transfers made to the account. Earnings,
including interest, dividends, and any other earnings arising from assets of the account,
must be credited to the account. Money remaining in the account at the end of a fiscal year
does not cancel to the general fund but remains available until June 30, 2034. The
commissioner is the fiscal agent and must manage the account.
new text end

new text begin (b) Money in the account is appropriated to the commissioner and must be used to:
new text end

new text begin (1) pay all or any portion of the state match that is required as a condition of receiving
federal funds;
new text end

new text begin (2) award grants under subdivision 4 to obtain grant writing assistance for eligible
entities; and
new text end

new text begin (3) pay the reasonable costs incurred by the department to assist eligible entities to
successfully compete for available federal funds.
new text end

new text begin Subd. 3. new text end

new text begin Grant awards; eligible entities; priorities. new text end

new text begin Grants may be awarded under this
section to eligible entities. Grants must be awarded in a manner that is consistent with the
following order of priorities:
new text end

new text begin (1) federal formula funds directed to the state that require a match;
new text end

new text begin (2) federal formula funds directed to a political subdivision or a Tribal government that
require a match;
new text end

new text begin (3) federal formula funds directed to an institution of higher education, a utility, a
business, or a nonprofit organization that require a match;
new text end

new text begin (4) federal competitive funds directed to an eligible entity that require a match; and
new text end

new text begin (5) all other formula or competitive grant opportunities directed to eligible entities that
do not require a match but for which the commissioner determines that a grant made under
this section is likely to (i) enhance the likelihood of an applicant receiving federal funds,
or (ii) increase the potential amount of federal funds received.
new text end

new text begin Subd. 4. new text end

new text begin Grant awards; grant writing assistance. new text end

new text begin Grants may be awarded under this
section to entities with expertise and experience in grant writing, in order to assist eligible
entities to prepare grant applications for federal funds. Eligible grantees under this subdivision
include regional development commissions established in section 462.387, the West Central
Initiative Foundation, and any entity the commissioner determines enhances the
competitiveness of grant applications from eligible entities located in areas not served by
a regional development commission.
new text end

new text begin Subd. 5. new text end

new text begin Grant amounts. new text end

new text begin (a) For grants that meet the criteria in subdivision 3, clauses
(1) to (3), the maximum grant award is ... percent of the required match.
new text end

new text begin (b) For grants that meet the criteria in subdivision 3, clause (4), the maximum grant
award is 50 percent of the required match, except that if the commissioner determines that
at least 40 percent of the direct benefits resulting from a project awarded federal funds are
realized by residents of a disadvantaged community, the commissioner may award up to
100 percent of the required match.
new text end

new text begin (c) For projects that meet the criteria in subdivision 3, clause (5), the commissioner may
award a grant up to ten percent of the amount of federal funds requested by the applicant,
except that if the commissioner determines that at least 40 percent of the direct benefits
resulting from a project awarded federal funds are realized by residents of a disadvantaged
community, the commissioner may award up to 20 percent of the amount of federal funds
requested.
new text end

new text begin (d) Notwithstanding any other provision in this section:
new text end

new text begin (1) a grant awarded under this section must not exceed $.......; and
new text end

new text begin (2) a single entity must not receive grant awards under this section that cumulatively
exceed $........
new text end

new text begin Subd. 6. new text end

new text begin Grant awards; administration. new text end

new text begin (a) An eligible entity seeking a grant award
under subdivision 3 or an entity seeking a grant award under subdivision 4 must submit an
application to the commissioner on a form prescribed by the commissioner. The
commissioner is responsible for (1) receiving and reviewing grant applications, and (2)
awarding grants under this section. The commissioner must develop administrative
procedures governing the application, evaluation, and award process. The commissioner is
prohibited from making a grant award under this section unless the commissioner has
determined, and has notified the applicant in writing, that the application is complete. When
awarding grants under this section, the commissioner must endeavor to make awards to
applicants from all regions of Minnesota.
new text end

new text begin (b) The department must provide technical assistance to applicants with respect to the
energy-related content of the application. Applicants may receive grant writing assistance
at no cost from an entity awarded a grant under subdivision 4.
new text end

new text begin (c) Within ten business days of the date the commissioner determines the grant amount
awarded to an applicant, the commissioner must:
new text end

new text begin (1) reserve the amount for the specific grant in the state competitiveness fund account;
and
new text end

new text begin (2) notify the Legislative Advisory Commission in writing of the reserved amount, the
name of the applicant, the purpose of the project, and the unreserved balance of money
remaining in the account.
new text end

new text begin (d) Reserved money is committed to the grant and for the use specified in the notice
provided under paragraph (c), and is unavailable for reservation or appropriation for other
applications until the commissioner receives written notice (1) from the applicant that the
application for federal funds has been withdrawn, or (2) from the federal grantor that the
application for which funds from the account were reserved was denied federal funds.
new text end

new text begin (e) Reserved money may be expended only upon presentation of written notice from the
federal grantor to the commissioner stating that the applicant has been granted federal funds
for the project described in the application. If the amount of federal funds awarded to an
applicant differs from the amount requested in the application, the commissioner may adjust
the award made under this section accordingly.
new text end

new text begin Subd. 7. new text end

new text begin Advisory task force; membership; operation. new text end

new text begin (a) The Minnesota State
Competitiveness Fund Advisory Task Force is established in the Department of Commerce
and consists of the following six members:
new text end

new text begin (1) the chair and ranking minority member of the senate committee with jurisdiction
over energy finance;
new text end

new text begin (2) the chair of the senate committee with jurisdiction over finance;
new text end

new text begin (3) the chair and ranking minority member of the house of representatives committee
with jurisdiction over energy finance; and
new text end

new text begin (4) the chair of the house of representatives committee on ways and means.
new text end

new text begin (b) The commissioner must convene the initial meeting of the task force no later than
October 1, 2023.
new text end

new text begin (c) The Legislative Coordinating Commission must provide staff and administrative
support to the task force.
new text end

new text begin (d) The task force's meetings are subject to chapter 13D.
new text end

new text begin Subd. 8. new text end

new text begin Advisory task force; duties. new text end

new text begin (a) The task force must review the use of money
in the state competitiveness fund account and make recommendations to the committees in
the senate and house of representatives with jurisdiction over energy finance and to the
commissioner regarding how to increase the number of eligible entities that successfully
compete for and receive federal funds.
new text end

new text begin (b) The task force must determine, in consultation with the commissioner, a process by
which the task force can be informed on an ongoing basis of the status of the state
competitiveness fund account, including the amount of funds reserved and expended, the
outcome of applications for federal funds submitted by eligible entities, and other information
the task force deems relevant to the task force's duties.
new text end

new text begin (c) The task force must review the annual reports filed by the department under
subdivision 10.
new text end

new text begin Subd. 9. new text end

new text begin Expiration. new text end

new text begin The task force under subdivisions 7 and 8 expires January 1, 2035.
new text end

new text begin Subd. 10. new text end

new text begin Report; audit. new text end

new text begin Beginning February 15, 2024, and each February 15 thereafter
until February 15, 2035, the commissioner must submit a written report to the chairs and
ranking minority members of the legislative committees with jurisdiction over energy finance
on the activities taken and expenditures made under this section. The report must, at a
minimum, include the following information for the most recent calendar year:
new text end

new text begin (1) the number of applications for grants filed with the commissioner and the total amount
of grant funds requested;
new text end

new text begin (2) the number of grants and amounts awarded;
new text end

new text begin (3) the number of additional personnel hired for the purposes of this section;
new text end

new text begin (4) expenditures on activities conducted under this section, reported separately for the
following areas:
new text end

new text begin (i) technical assistance provided;
new text end

new text begin (ii) grants made to entities under subdivision 4 in order to assist applicants with grant
writing;
new text end

new text begin (iii) application review and evaluation;
new text end

new text begin (iv) information technology activities; and
new text end

new text begin (v) other expenditures;
new text end

new text begin (5) the unreserved balance remaining in the state competitiveness fund account;
new text end

new text begin (6) a copy of a financial audit of the department's expenditures under this section
conducted by an independent auditor;
new text end

new text begin (7) recommendations for legislation to enhance eligible entities' ability to successfully
compete for federal funds; and
new text end

new text begin (8) additional available funding opportunities to obtain energy-related funding from
federal agencies.
new text end