Legislation for the State Competitiveness Fund would provide critical state resources to match federal funds, technical assistance, and grant-writing help for rural, Tribal and disadvantaged communities so Minnesota can compete for multiple energy-related federal grants. 

The State Competitiveness Fund (SF1622/ HF1656) invests $115 million in state funds to unlock billions in federal dollars available through competitive and formula funding opportunities available through the Infrastructure and Jobs Act (IIJA) and Inflation Reduction Act (IRA).

The legislation, which has bipartisan support and advocates statewide, is moving quickly through the Minnesota Legislature. 

“The State Competitiveness Fund will make sure that these federal funds are available all around our state, to communities large and small,” said Representative Patty Acomb (DFL-Minnetonka), chief author of HF1656 and Chair of the House Climate and Energy Committee. “It will ensure we provide assistance to Tribal governments and disadvantaged communities to make sure everyone can benefit in this clean energy transition.”

The funding will position the Minnesota Department of Commerce, along with partners across the state, to compete for and support grant applications in over 20 competitive pots of federal money. Each program funded will require staffing needs and some require state matching funds. 

“The State Competitiveness Fund combines more than $100 million in state funding with billions of dollars in federal matching grants,” said Senator Nick Frentz (DFL-North Mankato), chief author of SF1622 and Chair of the Senate Energy, Utilities, Environment and Climate Committee. “The result would be a transformational investment for our state, our local units of government, Tribes, higher education institutions, rural cooperatives and electric utilities. With this legislation, we continue to drive Minnesota’s energy economy toward a cleaner, more responsible future. I look forward to seeing the State Competitiveness Fund legislation reach the Senate floor in the coming weeks.”  

Commissioner Grace Arnold said, “The State Competitiveness Fund is a vital part of how our state can achieve the goals in Minnesota’s Climate Action Framework. We can use the funds to make sure Minnesota can compete with other states and we open the door for federal funds for small municipalities, Tribes, and schools. These funds benefit Minnesota by creating good paying jobs and accelerating the path to a clean energy future.”  

Courtney Johnson, Mayor of the City of Carver, which is one of the League of Minnesota Cities' municipalities aiming to pursue federal clean energy funds, said, “While we are growing rapidly, the City of Carver is near the beginning of our venture into renewable energy. The opportunity the State Competitiveness Fund would provide through resources, technical assistance and grant-writing help for the City of Carver and other small cities throughout Minnesota is phenomenal. I can’t tell you how much this would mean to our community and others like us across the state.” 

“The matching grant will allow Minnesota’s electric cooperatives to push forward tomorrow’s innovations today while still keeping electricity rates affordable,” Minnesota Rural Electric Association CEO Darrick Moe said. The Minnesota Rural Electric Association represents all of Minnesota’s not-for-profit electric cooperatives who collectively serve over 1.7 million Minnesotans. 

Get updates and news from the Minnesota Department of Commerce by following Commerce on Facebook and Twitter or by subscribing to our news email list.  

MEDIA CONTACTS: 

Mo Schriner, Minnesota Department of Commerce  mo.schriner@state.mn.us
Mike Mullen, Senate DFL Media  mike.mullen@senate.mn
Scotland Kraker, House DFL Media  scotland.kraker@house.mn.gov