1.1 	A bill for an act
1.2 	relating to energy; funding research on renewable energy by University of 
1.3 	Minnesota; delaying sunset date;amending Minnesota Statutes 2006, section 
1.4 	216B.241, subdivision 6.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 216B.241, subdivision 6, is amended to 
1.7 	read:
1.8 		Subd. 6.Renewable energy research. (a) A public utility that owns a nuclear 
1.9 	generation facility in the state, cooperative electric association, and municipal utility
1.10 	shall spend five percent of the total amount that utility is required to spend under 
1.11 	this section to support basic and applied research and demonstration activities at the 
1.12 	University of Minnesota Initiative for Renewable Energy and the Environment for the 
1.13 	development of renewable energy sources and technologies and for the development of 
1.14 	energy conservation and efficient energy utilization technologies. The Each public utility, 
1.15 	cooperative electric association, and municipal utility shall transfer the required amount 
1.16 	to the University of Minnesota on or before July 1 of each year and that annual amount 
1.17 	shall must be deducted from the amount of money the utility is required to spend under 
1.18 	this section. The University of Minnesota shall transfer at least ten percent of these funds 
1.19 	to at least one rural campus or experiment station.
1.20 	(b) Research Activities funded under this subdivision shall may include, but are 
1.21 	not limited to:
1.22 	(1) development of environmentally sound production, distribution, and use of 
1.23 	energy, chemicals, and materials from renewable sources;
2.1 	(2) processing and utilization of agricultural and forestry plant products and other 
2.2 	bio-based, renewable sources as a substitute for fossil-fuel-based energy, chemicals, and 
2.3 	materials using a variety of means including biocatalysis, biorefining, and fermentation;
2.4 	(3) conversion of state wind resources to hydrogen for energy storage and 
2.5 	transportation to areas of energy demand;
2.6 	(4) improvements in scalable hydrogen fuel cell technologies; and
2.7 	(5) production of hydrogen from bio-based, renewable sources; and sequestration 
2.8 	of carbon.
2.9 	(1) environmentally sound production of energy from a renewable energy source 
2.10 	including biomass; 
2.11 	(2) environmentally sound production of hydrogen from biomass and any other 
2.12 	renewable energy source for energy storage and energy utilization; 
2.13 	(3) development of energy conservation and efficient energy utilization technologies; 
2.14 	(4) energy storage technologies; and 
2.15 	(5) analysis of policy options to facilitate adoption of technologies that use or 
2.16 	produce  a  renewable energy source. 
2.17 	(c) Notwithstanding other law to the contrary, the utility may, but is not required to, 
2.18 	spend more than two percent of its gross operating revenues from service provided in this 
2.19 	state under this section or section 216B.2411. 
2.20 	(d) For the purposes of this subdivision, "renewable energy source" has the meaning 
2.21 	given in section 216B.243, subdivision 3a, and "biomass" has the meaning given in section 
2.22 	216B.2411, subdivision 2, paragraph (c).
2.23 	(e) This subdivision expires June 30, 2008 2013.