The Minnesota State Legislature established the Minnesota State Competitiveness Fund (SCF) with the purpose of increasing the success of Minnesota applicants in the pursuit of federal funds for energy projects. This historic investment will provide critical state resources to help realize clean energy projects by providing technical assistance on projects, and expanding grant-writing capacity for entities in Greater Minnesota and Tribal Governments. The SCF will best position Minnesota to compete for federal energy-related competitive and formula grants, spurring investment in our state.
State funding appropriations totaling $190 million will provide grants for assistance with project and proposal development to offset the cost-share requirements of federal funding programs and reduce the project costs for the Minnesota entities receiving federal grant funding.
In accordance with requirements set forth in Minnesota Statutes § 216C.391, subd.7, Commerce published a report on the State Competitiveness Fund. The State Competitiveness Fund 2025 Annual Report provides information on Commerce’s development work and status updates covering all SCF programs. The report was submitted to the Legislature in February 2026. The SCF Annual Report is available for viewing here.
Local Grant Development Assistance funding
The Minnesota Department of Commerce, Division of Energy Resources issued a competitive grant funding opportunity for grant development assistance to support eligible entities in preparing grant applications for federal funds specified in statute 216C.391 Sec. 2, subdivision 2.
The goal of the program is to ensure the state’s economy is strong and growing by increasing the competitiveness across Minnesota in accessing federal funding by providing grant development assistance statewide. Awarded organizations will provide services to eligible entities, especially those designated as Disadvantaged Communities, to allow Minnesota entities to have better access to and utilization of federal funding opportunities.
Click here for more information on the program and the list of those selected to receive grants under this initiative.
State Competitiveness Matching Funds Program
In the 2023 session, the state legislature appropriated $100 million for the creation and funding of a State Competitiveness Fund (SCF) Matching Funds program. This program assists eligible Minnesota entities seeking federal grant awards for energy projects. Originally intended only to compliment federal awards supported through the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA), the 2025 Minnesota legislature expanded the program to allow for all preapproved federal programs that meet clean energy goals for the State of Minnesota.
Application information and details on projects that have received SCF funding can be found by clicking here.