March 31, 2009, Introduced by Senators ALLEN, GARCIA and KUIPERS and referred to the Committee on Commerce and Tourism.
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
by amending section 88q (MCL 125.2088q), as added by 2008 PA 175.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 88q. (1) The fund may create and operate a centers of
energy excellence program to promote the development, acceleration,
and sustainability of energy excellence sectors in this state. The
fund may enter into agreements with 1 or more qualified entities
for the designation and operation of a center of energy excellence
as provided in subsection (5). Prior to entering into an agreement
under this section, 1 or more qualified entities may apply to the
fund for an agreement for designation and operation of a center of
energy excellence. The application shall be in a form determined by
the fund and shall include information the fund determines
necessary and appropriate.
(2) The fund board shall not expend more than $45,000,000.00
through fiscal year 2008-2009 and not more than $60,000,000.00 for
fiscal year 2009-2010 through fiscal year 2011-2012 of the money
appropriated for programs authorized under this chapter from the
21st century jobs trust fund created in the Michigan trust fund
act, 2000 PA 489, MCL 12.251 to 12.260, for the centers of energy
excellence program. Grants given for the centers of energy
excellence program shall only be awarded to for-profit companies
for
1 all of
the following purposes:
(a)
Providing a up to a
1-for-1 match for foundation
funding,
federal
funding , or international investments of up to 50% of the
total project costs.
(b) Supplementing in-kind contributions provided by a person
or entity other than this state.
(c) Accelerating the commercialization of an innovative energy
technology or process that will be ready to market within 3 years
of the effective date of the agreement.
(d) Activities of the center, including, but not limited to,
workforce development and technology demonstration.
(3)
Not less than 50% All of
the funds allocated to the
centers for energy excellence program shall be used to match
foundation
funding, federal funding. ,
or international
investments.
The fund board may authorize
investment terms in
qualified entities as part of any agreement as provided in
subsection (5). Not more than 15% of any grant awarded can be used
for administrative costs or overhead by the grantee or any
subcontractor hired to implement any portion of the centers for
energy excellence agreement. Grants authorized by this section
shall be disbursed pursuant to a timeline and progress disbursement
schedule included as part of an agreement under this section.
(4) The fund board shall establish a standard process to
evaluate applications for an agreement under this section and shall
appoint a committee of members of the fund board to assist in the
review of applications. The fund or the fund board shall not
appoint or designate any person paid or unpaid to a committee to
review applications if that person has a conflict of interest with
any potential applicants as determined by the office of the chief
compliance officer established in section 88i. When determining
whether to enter into an agreement under this section, the fund
board shall consider all of the following:
(a) The potential that in the absence of an agreement the
development, acceleration, and sustainability of energy excellence
sectors addressed by the proposed center of energy excellence will
occur in a location other than this state.
(b) The extent to which the proposed center of energy
excellence will promote the development of energy excellence
sectors in this state.
(c) The extent to which the proposed center of energy
excellence will promote economic development or job creation in
this state.
(d) The extent to which the proposed center of energy
excellence could attract private investment or encourage
commercialization in energy excellence sectors in this state.
(e) The extent to which the proposed center of energy
excellence may leverage skills or resources in which this state
possesses a competitive advantage, including, but not limited to,
skills of workers, intellectual property, and natural resources.
(f) The extent to which the proposed center of energy
excellence may encourage collaboration on commercialization and
technology transfer among qualified entities in this state.
(g) The extent to which the proposed center of energy
excellence may attract additional federal funding to this state or
persons or entities within this state.
(h) The financial viability of the proposed center of energy
excellence and the proposed business plan for the center of energy
excellence, including, but not limited to, commitments of financial
and other support for the proposed center and the potential
availability of federal funding for the proposed center.
(i) The financial resources available to the fund board for
operation of the centers of energy excellence program under this
section.
(j) Any recommendations from the centers manager selected
under subsection (6).
(5) If the fund board enters into an agreement with 1 or more
qualified entities for the operation of a center of energy
excellence, the agreement shall include participation by at least 1
qualified business and at least 1 institution of higher education
or a national laboratory. An agreement shall include, but is not
limited to, all of the following:
(a) The roles and responsibilities of the fund and the
qualified entities participating in the agreement.
(b) A governance structure for the center of energy
excellence. The agreement may provide for representation of the
fund in the governance of the center.
(c) The responsibilities of the fund and the qualified
entities participating in the agreement, including, but not limited
to, financial resources, technology, real property, personal
property, or other resources contributed by the parties to the
agreement.
(d) A commitment by the qualified entities participating in
the agreement to collaborate on commercialization and technology
transfer opportunities in energy excellence sectors in this state.
(e) A commitment by qualified entities that are institutions
of higher education to provide incentives for faculty who
participate in technology transfer and commercialization activities
in energy excellence sectors and expansion of business formation
efforts related to energy excellence sectors to increase the number
of institution of higher education related start-up companies.
(f) A commitment to locate and retain commercialization
opportunities resulting from the agreement or center of energy
excellence within this state.
(g) A business plan for the center of energy excellence that
identifies clear and measurable objectives, timelines, and
deliverables for the center.
(h) The duration of the agreement and a mechanism for the
dissolution of the center of energy excellence and the disposition
of any assets. The fund board may revoke an agreement for the
designation and operation of a center of energy excellence if a
qualified entity that is a party to the agreement does not comply
with the agreement.
(i) Provision for repayment of grants from the fund in the
event a qualified entity fails to comply with the agreement.
(6) The fund board may select a person or entity as a centers
manager to assist the fund in the administration of the centers of
energy excellence program authorized by this section. Costs
associated with the administration of the centers of energy
excellence program are subject to section 88b(5). The centers
manager shall do all of the following as determined by the fund
board:
(a) Provide administrative services related to the centers of
energy excellence program.
(b) Act as contract manager on behalf of the fund for any
agreement establishing a center of energy excellence under this
section.
(c) Recommend to the fund board a plan for managing the
centers of energy excellence program and implement any plan
authorized by the fund board.
(d) Assist centers of energy excellence in developing a supply
chain for energy excellence sectors.
(e) Evaluate and report to the fund board on the centers of
energy excellence program and progress made toward
commercialization of technology in energy excellence sectors in
this state.
(f) Review applications submitted under subsection (1) and
make recommendations to the fund board on the applications for
approval
or disapproval of applications.
(g) Perform other functions related to the centers for energy
excellence program authorized by this section as deemed necessary
and appropriate by the fund board.
(7) As used in this section:
(a) "Centers manager" means a centers manager selected under
subsection (6).
(b) "Energy excellence sectors" means new and developing
industry sectors in the energy field in this state where the fund
has determined the state has a competitive advantage and there are
barriers to the commercialization of technology within the new and
developing industry sector.
(c) "Energy field" means alternative energy technology, energy
efficiency technology, technologies that contribute to energy
security and independence, other advanced energy technologies, or
water technology related to the development of energy excellence
sectors.
(d) "Qualified entity" means a qualified business, an
institution of higher education, a Michigan nonprofit corporation,
a national laboratory, or a political subdivision of this state.