Gov. Tim Walz Signs Competitiveness Funding Bill Into Law to Assist Cities Applying for Energy-Related Grant Programs

April 24, 2023

The bill seeks to help maximize funding available through the federal Inflation Reduction Act and Infrastructure Investment and Jobs Act.

Gov. Tim Walz signed HF 1656 into law on April 18. The bill, now Chapter 24 in Session Law, provides $156 million to assist Minnesota entities, including cities, seeking federal grant awards for energy projects under the federal Inflation Reduction Act and the Infrastructure Investment and Jobs Act.

Funding details

The funding appropriated in the bill, and the establishment of a Minnesota state competitiveness fund, will provide state grants to fund a portion of any nonfederal match requirements as a condition for receiving federal grants. It also provides funding for entities that seek to assist Minnesota applicants, including cities, with technical assistance to develop their federal grant applications for energy-related projects. The breakdown of the $156 million in funding is as follows:

  • $140 million for nonfederal match requirements.
  • $13.75 million for grant development assistance through regional development organizations to provide applicant technical assistance for federal energy funds.
  • $750,000 for required reports and audits through 2035.
  • $1.5 million for information system development to support the program.

The League will continue to work closely with the Department of Commerce, as well as other stakeholders that are eligible to provide technical assistance, to ensure that cities interested in applying for federal energy funding receive the assistance and the resources they need for successful applications.

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