Location: Minnesota Department of Agriculture (St. Paul, MN)
Members present: Commissioner Dave Frederickson, Commissioner Mike Rothman, Senator Doug Magnus, Senator Julie Rosen, Senator Rod Skoe, Representative Denny McNamara, Paul Stark, Thom Peterson, Amanda Bilek, Tony Thompson, John Frey, Deputy Commissioner Paul Moe (for Commissioner Mark Phillips), Assistant Commissioner David Thornton (for Commissioner Paul Aasen), Commissioner Tom Landwehr, Representative Larry Hosch
Designees present: Deputy Commissioner Dave Schad and Mark Lindquist (for Commissioner Landwehr), Ken Brown (for Commissioner Rothman)
Approval of Minutes: Minutes from the (September 2010) meeting of the NextGen Energy Board were distributed and approved.
Commissioner Dave Frederickson – Minnesota Department of Agriculture (MDA)
- Commissioner Frederickson convened the meeting at 1:10pm.
- Commissioner Frederickson requested the election of a temporary board chair – Sen. Magnus made a motion to elect Commissioner Frederickson, Paul Moe seconded the motion. Motion carried.
- Discussion of Board Structure; Election of Officers.
- Sen. Rosen stated that the Legislative Energy Commission would like to see movement together; there was discussion and agreement; it was noted that this Board is more narrowly defined.
- Sen. Magnus made a motion to nominate Commissioner Frederickson to become the Chair; Paul Moe seconded the motion. Motion carried.
- Sen. Skoe made a motion to nominate Sen. Magnus as vice-chair; Rep. Hosch made a motion to nominate Rep. Hamilton as co-vice-chair. Motion carried.
Greta Gauthier – MDA, Director of Government Relations
- Greta Gauthier gave a legislative update from the 2011 session.
- SF1016, Omnibus Agriculture Appropriations Bill: FY12 - $13.732 million ethanol payment; FY12 - $2.5 million bioenergy grants/NextGen; FY13 - $2.301 million agricultural, growth, research, and innovation program (AGRI)/MDA.
- Greta also discussed riders related to eligibility requirements and other parameters for NextGen Energy Grants.
- SF1115, Environment Policy Bill: definition of biobutanol and facility; environmental assessment worksheet waiver for ethanol plant expansion.
- HF1611, Agriculture Policy Bill (not passed): blender pump cost-share; AGRI – sunset from 2013 to 2015; same biobutanol definition.
- Sen. Skoe mentioned Lake of the Woods wood products project was included in final legislation, although Mahnomen prairie and short woody products was not included.
- Sen. Rosen inquired if past funding is left over. Christina Connelly explained that 2007 was the first appropriation of $3 million and although all funds were distributed, some were returned to the general fund due to economic or other conditions grantees faced. A discussion continued about which projects were changed or not executed.
Christina Connelly – MDA, Bioenergy Manager
- Commissioner Frederickson and Christina Connelly discussed Board planning and referred to handouts about the Board statutory authority and strategic vision.
- Christina Connelly explained that the Board wanted to consider three main purposes, focused on biofuels and bioenergy. The Board came up with strategies to continue support of current biofuels industry while moving towards the next generation of biofuels.
- Sen. Magnus said that the Board should try to be flexible - to focus on energy independence while being as technology- and product-neutral as possible, and leverage with other government or private entities.
- Commissioner Mike Rothman encouraged continuity and flexibility; exercise caution, but be bold; consider all available technologies; focus on energy resources in Minnesota and how to move them forward.
- Sen. Rosen – How are grants decided upon? Need clear funding mechanisms in place; increase public awareness.
- John Frey made a motion to change the first objective based on Commissioner Rothman's recommendation; Sen. Skoe made a friendly amendment to make the same change on the first strategy; Commissioner Rothman seconded the motion. Motion carried.
- The change is to strike "To decrease reliance on fossil fuels" and replace it with a more positive statement, "To increase the use of our state's bioenergy resources".
Discussion of NextGen Energy Grant Program
Ken Brown - Minnesota Department of Commerce
- Gave an overview of the administration of the grants; input from industry for the Request for Proposal (RFP); advisory group; importance of economic value; environmental performance; policies; and to receive capitalization of other funds; federal grants; ranges of commercialization (early, mid-stage, technology transfer); qualified evaluators in advisory group.
Mark Lindquist - Minnesota Department of Natural Resources
- Discussed issues with RFP; preference for local/farmer owned; 28 proposals; technical team went through proposals.
- The previous Board had two frustrations with the process: 1) confidentiality of proposals – not being able to give members copies of the proposals; 2) conflict of interest – member not able to vote if their organization is submitting a proposal.
- Discussion continued about confidentiality and conflict of interest. MDA legal council and MN Office of Grants Mgmt will address issues at the next meeting.
Commissioner Dave Frederickson – MDA
- Commissioner Frederickson wondered if the Board wanted to go through the same process?
- Being unable to vote during the last round, John Frey, trusted colleagues votes, although agency staff could let members know if there is a conflict of interest before the meeting is convened.
- Sen. Magnus said members should continue to be careful to protect themselves.
- Sen. Skoe wondered if the Board has input into the technical team? Cabinet agencies staff, although people are not specified to protect them from risk of bias. Sen. Skoe – the University of Minnesota (UMN) or Agricultural Utilization Research Institute (AURI), etc. should not be disallowed from voting.
- Sen. Rosen wondered how people know about funding. RFP through state register, informal solicitation through web site, Ken Brown and Greta Gauthier both have extensive email lists. Sen. Rosen requested an email to legislators; Sen. Magnus concurred to keep in touch with emails.
- Sen. Rosen emphasized the need to measure project success. Staff will work to develop a measurement tool.
Wrap-Up
- Christina Connelly provided an overview of 2008 NextGen Energy Grant projects.
- Sen. Magnus requested an overview of federal incentives at a future meeting (USDA Rural Development).
- Thom Peterson requested a presentation on opportunities in the 2012 Farm Bill, as well as what other states are doing (Iowa)? North and South Dakota – blender pumps.
- Deputy Commissioner Dave Schad requested information on state of technology; emerging needs/issues; federal level – U.S. Department of Energy, USDA/Rural Development.
Tentative Timeline
- July - Board Meeting – Grant Planning, Measurement, Notice, Ethical Concerns
- August – Grant Solicitation
- September – Board Meeting and Site Visit
- October - Technical Team Meeting
- November - Board Meeting – Technical Team Update to Board
- December – Grants Announced
- Early January – Board Meeting
- Corn stover presentation
- Grants update
Meeting adjourned at 3:15pm.
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