The legislation also provides $20 million for Centers of Excellence grants, including $10 million for enhancement grants at UND and NDSU. These funds can be used to support base realignment activities in Grand Forks where Hoeven and other leaders are working to stimulate research activities between UND and aerospace and unmanned aircraft systems industries, as well as other research opportunities made possible with realignment of the base.
The $39 million in Centers of Excellence funding so far has produced nearly $170 million in total economic impact to date.
The enhanced grants support the goals of the community to use the valuable research and infrastructure resources that exist in the community to develop and commercialize new technologies to replace the economic activity lost through recent base reductions.
The Governor will veto one section of the bill as a technical correction. Section 24 would duplicate completed and ongoing studies and analyses conducted by the Department of Commerce and independent economists. It would also require the State Auditor to do an economic impact study, which is not the function of the State Auditor’s Office. The State Auditor already has authority to audit any independent economic analysis commissioned by the Department of Commerce, which is the State Auditor’s role.
Highlights of the Commerce Department and other economic development-related legislation include:
A $20 million appropriation for Centers of Excellence awards. These projects will continue to transform and expand North Dakota’s economy.
A 50% increase in funding for Operation Intern, and renewed funding for Workforce Enhancement grants to build North Dakota’s workforce.
$5.2 million in tourism marketing funds.
Increased funding for the North Dakota Trade Office, which has helped to grow our exports by 35% in 2008, and more than 340% since 2000.
$2.5 million to support innovation and entrepreneurship, including $1 million for a technology-based entrepreneurship grant program, $400,000 for Innovate North Dakota, and seed financing to support new business incubators and entrepreneurs.
A more than $5 million loan and grant program for childcare workforce development, quality improvement and technical assistance to establish and expand safe childcare facilities in North Dakota.
An extended Property Tax Reduction and Sales and Use Tax Exemption for wind power, as well as an extended Income Tax Credit for the installation of any renewable Energy Device, including geothermal, solar, wind and biomass.
$3 million for the Renewable Energy Fund.
$17 million for agriculture research infrastructure, including $11.4 million for Phase II of the NDSU Research Greenhouse, $2.6 million for a beef research facility, and $2.9 million for improvements to the Research Extension Centers at Minot, Williston, Dickinson and Langdon.
A landmark law to regulate Geological Storage of Carbon Dioxide, the first in the nation. It establishes a statutory framework for the regulation of long-term geologic storage of carbon dioxide by the North Dakota Industrial Commission.
A new law to establish Ownership of Subsurface Pore Space for carbon sequestration.
A carbon credit incentive against coal conversion privilege taxes to help facilities achieve a required level of carbon dioxide capture, and a new tax incentive for cleaner-burning beneficiated coal.
A streamlined 7% oil extraction tax option to promote exploration and development in the Bakken Reserve.
“We’ve worked hard to create a top-notch business climate and real opportunities for our people by substantially reducing taxes and creating strong incentives for our targeted industries, including agriculture, energy, technology based businesses, advanced manufacturing and tourism,” Hoeven said. “This legislation builds on this hard work and will continue to make North Dakota a great place for businesses to start or expand, creating better paying jobs and careers for our people.”
“Building a workforce to fuel ongoing business growth in our state is a vital ongoing activity,” said Commerce Commissioner Shane Goettle. “Likewise, we know that the most promising businesses of the future will be born and nurtured right here by our own entrepreneurs and innovators. This budget makes smart investments in these areas.”
Hoeven said the budget invests strongly in energy, agriculture and tourism marketing. He also cited increased funding for innovation, entrepreneurship and workforce retention programs aimed at involving young people in North Dakota careers before they make decisions to move out of state.
