HF1656 Summary

• Establishes the Minnesota State Competitiveness Fund to provide grants to eligible Minnesota entities to help pay state matching requirements for federal energy projects under the Infrastructure Investment and Jobs Act and Inflation Reduction Act of 2022.

• Appropriates $115,000,000 in fiscal year 2023, with $100,000,000 for competitive grants (at least $75,000,000 for awards under $1,000,000), $6,000,000 for grant development assistance, and remaining funds for administration, reporting, and technology improvements.

• Prioritizes grant awards to formula funds requiring matches, then political subdivisions and Tribal governments, followed by higher education institutions and nonprofits, investor-owned utilities, and other entities; maximum grant award is 100 percent of required match for top three priority tiers and 50 percent for others.

• Limits individual entities to $15,000,000 maximum in grants when federal matching funds are directed to the state, and caps grant development assistance grants at $300,000 per entity.

• Requires annual reporting beginning February 15, 2024 through February 15, 2035 detailing applications received, grants awarded, expenditures, personnel hired, and recommendations for legislation to enhance competitiveness in obtaining federal energy funds.