1.1 	A bill for an act
1.2 	relating to energy; requiring an expenditure from the renewable development 
1.3 	account to the University of Minnesota; amending Minnesota Statutes 2011 
1.4 	Supplement, section 116C.779, subdivision 3.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2011 Supplement, section 116C.779, subdivision 3, 
1.7 	is amended to read:
1.8 		Subd. 3.Initiative for Renewable Energy and the Environment. (a) Beginning 
1.9 	July 1, 2009, and each July 1 through 2011 2012, $5,000,000 must be allocated from the 
1.10 	renewable development account to fund a grant to the Board of Regents of the University 
1.11 	of Minnesota for the Initiative for Renewable Energy and the Environment for the purposes 
1.12 	described in paragraph (b). The Initiative for Renewable Energy and the Environment 
1.13 	must set aside at least 15 percent of the funds received annually under the grant for 
1.14 	qualified projects conducted at a rural campus or experiment station. Any set-aside funds 
1.15 	not awarded to a rural campus or experiment station at the end of the fiscal year revert 
1.16 	back to the Initiative for Renewable Energy and the Environment for its exclusive use. 
1.17 	This subdivision does not create an obligation to contribute funds to the account.
1.18 	(b) Activities funded under this grant may include, but are not limited to:
1.19 	(1) environmentally sound production of energy from a renewable energy source, 
1.20 	including biomass and agricultural crops;
1.21 	(2) environmentally sound production of hydrogen from biomass and any other 
1.22 	renewable energy source for energy storage and energy utilization;
1.23 	(3) development of energy conservation and efficient energy utilization technologies;
1.24 	(4) energy storage technologies; and
2.1 	(5) analysis of policy options to facilitate adoption of technologies that use or 
2.2 	produce low-carbon renewable energy.
2.3 	(c) For the purposes of this subdivision:
2.4 	(1) "biomass" means plant and animal material, agricultural and forest residues, 
2.5 	mixed municipal solid waste, and sludge from wastewater treatment; and
2.6 	(2) "renewable energy source" means hydro, wind, solar, biomass, and geothermal 
2.7 	energy, and microorganisms used as an energy source.
2.8 	(d) Beginning January 15 of 2010, and each year thereafter, the director of the 
2.9 	Initiative for Renewable Energy and the Environment at the University of Minnesota shall 
2.10 	submit a report to the chair and ranking minority members of the senate and house of 
2.11 	representatives committees with primary jurisdiction over energy finance describing the 
2.12 	activities conducted during the previous year funded under this subdivision.

2.13 	EFFECTIVE DATE. This section is effective the day following final enactment.