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									Bills Passed and/or Programs Funded 2007*

                                                         Early Stage Commercialization
                                Venture Capital       GAP Programs (Bridge
  Location      Bill Links                                                       Loan/Grant Programs
                                 Enhancement             Lab to Market)
  Missouri       Budget
                              $15 M from the Lewis and Clark Discovery Fund for several new TBED
  Missouri        HB16
                                                     $5M for Incubator at
  Missouri        HB16
 Minnesota                         $10.5M for Research and Commercialization as part of $170M Energy Initiative
 Oklahoma        SB 510

 Oklahoma        Budget

 Oklahoma        Budget

  Texas*         HJR 90

 California     Prop. 71

   Florida       Budget

   Florida        HB 83          $35 Million for Venture Capital, Tech Transfer and Gap Initiative
                                                                                    $100M to Fund Renewable Energy
    Iowa         Budget
 California     BP Grant

 California      Budget

 Arkansas        Various                                   $140M for Accelerate Arkansas
                                                           $295 Bond Issue To Voters for Research Commercialization and F
   Maine         LD 335
 Mississippi     HB1724                            $4M Capital-attracting Fund
                                                                                $5.8M R&D Follow On, Aerospace Business
               HB 1083
   Hawaii                                                                        Enhancement and Energy Independence
                SB 1471
New Jersey
                Bond Vote
New Jersey*
                                $90M to Boost Clean Energy Innovation
Pennsylvania      Order
 Louisiana     Relief Funds
                                                  5                         7

                                             168.25                    373.5
* Notably the Texas, New Jersey and Maine Bond programs requires voter approval in November 07
                                             Research Infrastructure
               Direct Funding of
                                       Facilities   Equipment           People        Notes
              $13.4M for Missouri's Life Sciences Research Trust


 f $170M Energy Initiative
                                    $40M Bio-energy Center                             40
                                                                   $50M for Endowed
                                $16.5M for Facilities at UO and
               $3B Bond Issuance directed to Cancer OK by State House, Subject to
                                        November Vote
                   $3B Bond Issue for Stem Cell Research                              3000
                                  $200M for Centers of Excellence, UM Institute for
                                    Genomics Research, UF Prototype BioFuels
 to Fund Renewable Energy
                                   $500M for Biofuel Research
                $140M for Headquarters, Lease
                    Support & Research                                                140
 s                                                                                    140
 Research Commercialization and Facilities
Enhancement                                                                           295

 Follow On, Aerospace Business
ment and Energy Independence                                                                5.8
                   $270M to Build Biomedical and Stem Cell Research Facilities
               $230M for Stem
                Cell Research                                                               230

                                           $28.5M Katrina Recovery Funds for
                                  Facilities/People and Commercialization Programs       28.5
                                                              13                       8155.3

                                                         7783.4                       8325.15
ember 07
Recap of Bills

SSTI Weekly Digest - May 21, 2007 Issue
Missouri Approves $32M for Bio-Ag Research, TBED
Two bills passed by the Missouri General Assembly last week include more than $32 million to support new
initiatives to promote TBED activities in the state. Programs to support bio-agricultural research, technology

Funding for Missouri's Life Sciences Research Trust Fund, which was stalled during last year's legislative
session, finally made it through the legislature, with last week's passage of the 2008 budget bill. The Trust Fund
was created in 2003 to support life science research, commercialization and technology transfer. HB 688
allocated 25 percent of the state's tobacco settlement funds beginning in fiscal year 2007 to the Life Sciences
Research Board, which administers the fund. However, concern over funds being used for embryonic stem cell
research led the General Assembly to divert the $37.5 million appropriation last session. In November, voters

Steering clear of any further controversy this year, legislators approved a $13.4 million appropriation for research
focusing on animal health and nutrition, renewable energy and plant science. The funds are limited to a one-time

The state has an aggressive animal sciences corridor, and the trust will invest in projects to invigorate the
research base to help encourage and support this industry cluster, said Mike Mills, deputy director of the Missouri

The General Assembly also passed HB 16 last week, which includes more than $15 million from the Lewis and
Clark Discovery Fund for several new TBED initiatives through the Missouri Technology Corporation, including:

   Ag Biotech Company Recruitment Fund ($3.35 million) - Funds will be used to recruit and retain ag
   Opportunity Fund for Bioenergy Research Center/National Bio and Agro-defense Facility ($3.25
   million) - Funds will be used to boost the state's competitiveness in seeking major federal research facilities,
   including one of three federal Bioenergy Research Centers and the National Bio and Agro-defense Facility to
   MTC Entrepreneur Pipeline Program ($1.5 million) - This is a new program designed to match
   entrepreneurs with high-tech products to create fast-growing high-tech jobs.
   Plant and Ag Biotech Seed Capital Co-Investment Fund ($1.5 million) - Funding will be used to invest
   alongside promising early-stage plant and ag biotech companies.
   High Tech Small Business Development Incentive Program ($1.25 million) - Funds will be used as loans
   for high-tech small businesses that apply for and receive federal SBIR/STTR grants.
   Intellectual Property Management Fund ($1.1 million) - Funding will provide resources to seek protection
   of the state's investment in intellectual property.
   St. Louis Information Technology Initiatives ($1 million) - Funding will be used to leverage local dollars
   invested in making St. Louis a leader in the creation of Information Technology jobs and companies through
   the University of Missouri St. Louis High Performance Computing Center and Innovate St. Louis.
   Medical Device Innovation Program ($350,000) - This program seeks to mentor student fellows through the
   process of successfully bringing new patented surgical devices and engineered health care solutions into the
   High Tech Marketing Promotion Fund ($350,000) - This matching marketing program is designed to
   encourage Missouri companies designated within the Department of Economic Development's targeted high-
   Missouri Open Innovation Network ($250,000) - Funding will assist in setting up a web-based portal for
   accessing innovation data from all Missouri R&D organizations.
   Missouri Power Resource Center ($200,000) - Funding will provide for the planning and development of the
   Power Resource Center to focus on cutting-edge technology related to power and next-generation batteries in
   AgBio Outreach Program ($125,000) - Funding will complement a federally supported project to challenge
   communities to leverage rural Missouri's interest in becoming energy independent and to strengthen K-12
   Emerging Firms Mapping Project ($50,000) - This project involves the mapping of Missouri's high-tech
   entrepreneurial firms to assist in national marketing efforts.
In addition, HB 16 also includes $5 million for construction of a new business incubator at Missouri State

SSTI Weekly Digest - June 6, 2007 Issue
Minnesota Approves Energy Initiative, Funding for TBED
Funding for energy and TBED initiatives were highlighted in the fiscal year 2007-09 biennial budget at the close of
the legislative session in Minnesota late last month. Winning nearly unanimous approval from the legislature was
Gov. Tim Pawlenty’s Next Generation Initiative announced during his State-of-the-State Address (see the Jan. 15,

The $170 million Agriculture and Veterans Omnibus Bill, which provides funding for the initiative, creates the Next
Generation Energy Board to research and recommend how the state can most efficiently achieve energy
independence. The bill also focuses on Minnesota’s 25x'25 goal, similar to the national 25x'25 initiative.
Minnesota energy companies are required under the bill to provide 25 percent of electricity from renewable
sources by 2025. The goal also aims for agriculture, forestry and working lands to produce 25 percent of the total

$4.25 million for a renewable energy research pool that includes $1.25 million to continue Clean Energy Resource
Teams and $2 million for plug-in hybrid electric vehicles and other automotive technology demonstrations, such
$3 million for the E85 Everywhere initiative to double the number of E85 pumps in the state;
$1.4 million in Next Generation Energy Grants for biofuels and biomass research, including the creation of a
biomass fuel supply depot in LeSueur or Scott County and a feasibility study of renewable forest resources by the
$1 million in 25x’25 grants for on-farm biogas recovery facilities or methane digesters and another $1 million to
An aggressive energy saving goal for Minnesotans to reduce use of fossil-fuel by 15 percent by 2015; and,
A goal of 1,000 certified Energy Star commercial buildings in the state by 2010.

To ensure Minnesota achieves maximum economic benefits from enhanced renewable energy activities, the bill
calls for the commissioners of the Minnesota Department of Employment and Economic Development (DEED),
Agriculture, Commerce and the Public Utilities Commission to develop a strategy that focuses on this goal.

The FY 2007-09 Budget appropriates $49.2 million for the Business and Community Development Division within
DEED over the biennium. Included in this amount is a one-time appropriation of $1.75 million to the BioBusiness
Alliance of Minnesota for bioscience business development programs to promote and position the state as a

$750,000 for a one-time appropriation to Minnesota Technology Inc. to support its small business growth
$250,000 in FY08 for the University Enterprise Laboratories to support early-stage and emerging bioscience
$200,000 over the biennium to help small businesses access federal funds through the Small Business
Innovation Research and Small Business Technology Transfer programs; and
$125,000 in FY08 to develop and operate a bioscience business marketing program to market Minnesota
bioscience business and business opportunities to other states and countries.

The legislature also approved new regional Math and Science Academies to provide professional development
for all teachers and enhancements of statewide Science, Technology, Engineering and Math initiatives.

SSTI Weekly Digest - June 6, 2007 Issue
Oklahoma Lawmakers Approve $40M Bioenergy Center, Cut EDGE
Oklahoma is one step closer to positioning itself as a leader in sustainable energy production, with the creation of
a $40 million Bioenergy Center. The legislature passed SB 510 at the close of the 2007 session last month,
establishing the Oklahoma Bioenergy Center announced by Gov. Brad Henry during his State-of-the-State

The Bioenergy Center is a joint collaboration between the University of Oklahoma, Oklahoma State University and
the Noble Foundation. The institution will coordinate the state’s resources and research programs in the fields of
biofuels and bioenergy development and production utilizing a $10 million annual appropriation over the next four
years. Research efforts will focus on sustainable economic production of cellulosic ethanol and developing critical
The center’s fiscal year 2008 appropriation will be channeled through the state’s lead TBED agency, the
Oklahoma Center for the Advancement of Science and Technology (OCAST). The total OCAST budget for FY08
is $28.9 million, including surplus monies added throughout the year. OCAST will receive $6 million in surplus

From the OCAST budget, $500,000 is directed to a Biofutures Institute in Tulsa and $350,000 is set aside for
research equipment. Additionally, HB 1105, a spillover bill distributing excess revenues after the state’s maximum
reserve balance is met, calls for $500,000 for OCAST to use to provide seed capital funding, a sharp decline from

Legislators also approved a $50 million increase of the authorization for endowed chairs at Oklahoma colleges
and universities and $16.5 million for capital projects at the University of Oklahoma, Oklahoma State University
and regional universities, including the state’s Cancer Center. Department of Commerce appropriations for FY08
include $250,000 for the Oklahoma Alliance for Manufacturing Excellence and $300,000 for the creation of a

Lawmakers did not allocate funding for two of the governor’s major economic development initiatives. Gov.
Henry’s proposed budget included $50 million to the Economic Development Generating Excellence endowment
fund and $15 million to the Opportunity Fund from surplus general revenue funds. Both initiatives were funded

The budget awaits Gov. Henry’s anticipated signature.

SSTI Weekly Digest - May 21, 2007 Issue
Funding Cleared for $3B Stem Cell Research in California
Texas Voters Likely to Decide on Similar Level for Cancer Research
After years of legal challenges to the California Stem Cell Research and Cures Act, the path for funding the $3
billion initiative has been cleared by the California Supreme Court. Texas may soon join the race to fund medical

The California Supreme Court last week declined to hear an appeal challenging the constitutionality of Proposition
71, effectively ending the lawsuits that have held up most of the bond funding for three years, according to the
California Institute for Regenerative Medicine (CIRM), the state agency that manages the project.

Voters in 2004 approved the bond issue, which immediately faced challenges from groups opposed to stem cell
research. A ruling last year from the Superior Court and Court of Appeals deemed the act to be constitutional in

Despite the legal setbacks, CIRM went ahead with its first round of funding last year through the purchase of
bond anticipation notes and a $150 million loan from the state’s general fund authorized by Gov. Arnold
Schwarzenegger. The agency funded $158 million in stem cell research projects, including 103 research grants at

The Supreme Court decision maintains that no additional litigation can delay issuance of the bonds and allows
CIRM to move into the next round of funding. This includes up to $48.5 million in shared laboratories grants and
loans and $222 million for major facilities at California universities, research hospitals, medical schools, and

A similar bond issue focusing solely on cancer research is likely to make it on the November ballot in Texas.
Pending approval by the Senate, voters will be asked to decide on a $3 billion bond issue that provides grants to
the Cancer Prevention and Research Institute of Texas. The constitutional amendment calls for grants of up to

Although Gov. Rick Perry supports the measure, he pushed for an alternative funding source earlier this year. In
his State-of-the-State Address, Gov. Perry proposed using proceeds from the sale of the state lottery instead of a
bond proposal for a caner research trust fund that he said could generate more than a quarter-billion dollars each

SSTI Weekly Digest - May 7, 2007 Issue
Florida Investing $400M+ for VC, Research Centers and Tech Transfer
This year, the Florida Legislature focused a great deal of attention on TBED issues, approving and continuing its
support for several tech-related programs. Though Gov. Charlie Crist's proposed $20 million investment in stem
cell research did not survive the legislative session, initiatives designed to encourage other cutting-edge research,

Enterprise Florida will manage the state's new Opportunity Fund, which will provide seed and early-stage venture
capital to high-tech companies through investments in private venture capital firms. The fund will launch with an
initial, one-time appropriation of $29.5 million and will specifically target its investments toward companies in the
advanced manufacturing, IT, life sciences, aviation and aerospace, and defense industries. Recipients must be

A new nonprofit Institute for the Commercialization of Public Research will coordinate the marketing and
commercialization of intellectual property developed at the state's public universities. The institute will receive $1
million for initial setup expenses and operations. University technology commercialization also will get a boost
from the State University Research Commercialization Assistance Grants program, which will offer early-, mid-,

The legislature also approved a $62 million plan to lessen the state's dependence on fossil fuels and encourage
renewable energy research. The plan calls for a $20 million cellulosic ethanol demonstration plant, to be
managed by the University of Florida. It also directs the Florida Energy Commission to begin work on designing a
state renewable energy standard and a net-metering policy. A new task force on energy policy will determine

The Florida Innovation Incentive Fund will receive its second $250 million allocation. Since its creation last year,
the state has used the fund to improve its R&D resources by investing in university and private research centers.
This year's budget stipulates that $80 million of the allocation will fund the construction of a genomic research
institute at the University of Miami. Projects that involve private businesses must create at least 1,000 jobs in the
state and invest $500 million or more in new capital. These projects often involve partnerships with public

SSTI Weekly Digest - May 7, 2007 Issue
Iowa Approves $100M to Fund Renewable Energy Research and Adoption
The 2007 Iowa state legislative session has looked very favorably on TBED. One of the centerpieces of Iowa
Gov. Chet Culver’s campaign last year was his pledge to "develop the next-generation energy ecomony in Iowa"
through a $100 million state fund (see the Feb. 19, 2007 issue of the SSTI Weekly Digest). The Iowa Power Fund
was approved by the state’s General Assembly late last month and closely resembles Gov. Culver’s original plan.

The authorizing legislation also calls for the creation of a board to oversee the distribution of the funds and a new
Office of Energy Independence. The board is authorized to make grants and loans that will accelerate in-state
R&D and knowledge transfer and will improve the economic competitiveness of the state’s renewable energy
industry. Iowa’s Office of Energy Independence will coordinate all state efforts to promote the use of renewable

The General Assembly also approved a Targeted Industries Development Fund to be overseen by Iowa’s
Department of Economic Development. The $3 million fund will support several new programs that will promote
the commercialization of new technologies in the advanced manufacturing, bioscience and information
technology industries. Businesses within these industries will be eligible to receive financial and technical

In late February, Gov. Culver signed SF 162, an act that lifted the state’s five-year ban on the cloning of human
embryos for stem cell research. Culver expects the bill to encourage biomedical research at the Iowa’s
universities. The legislation is available at:

SSTI Weekly Digest - February 12, 2007 Issue
BP Awards $500M for Biofuel Research
Energy giant BP has announced that the University of California at Berkeley, in partnership with the University of
Illinois Urbana-Champaign (UIUC) and Lawrence Berkeley National Laboratory, will receive a total of $500 million
to host a research center dedicated to developing biofuel technologies. The Energy Biosciences Institute (EBI) will
conduct both basic and applied biological research relevant to energy. BP and the university plan to launch

UC Berkeley was one of five universities around the world invited to apply when BP announced last July that that
the company would dedicate $500 million over the next 10 years to a biofuels research facility. Other applicants
included UC San Diego, UIUC, Massachusetts Institute of Technology, Cambridge University, and Imperial
College London. To improve the bid from the California universities, Gov. Arnold Schwarzenegger's proposed
budget for fiscal year 2008 includes $40 million in lease revenue to support the research center if either of the two

Researchers initially will focus on developing renewable fuels for automobiles. This work will incorporate many
areas of research and will include creating new biofuel components and enhancing the efficiency of fuel blends,
improving the existing technologies that convert organic matter into biofuels, and developing new plant species
that produce a higher fuel yield. Later investigations will address the conversion of heavy hydrocarbons to clean
fuels, improved recovery from existing oil and gas reservoirs, and carbon sequestration. Much of the research

UC Berkeley will host the majority of EBI’s 25 teams of researchers. BP Group CEO John Browne explained that
UC Berkeley was chosen because of its strong track record of "big science,” or long-term research involving
multiple teams of researchers across many disciplines. The university plans to house EBI in the same building as

In addition to biology and energy research, the initiative also will involve the social sciences and include a "social
interactions and risks laboratory" to examine the role of the public in determining the path of energy policy and
technological development, the public policy implications of genetically modified organic sources of energy, and

Both UIUC and Berkley National Laboratory will receive additional BP funding and personnel to support research
through the new institute. UIUC, which has thousands of available acres for cultivating plant matter for bioenergy,
will act as a secondary site for research. UIUC plans to dedicate 340 acres of farmland to EBI research this year.
Berkeley National Laboratory will expand its current alternative energy program to mesh with EBI and provide
access to existing facilities and data. EBI activities also are expected to dovetail with the carbon neutral energy

Find out more about the Energy Biosciences Institute at:

SSTI Weekly Digest - April 9, 2007 Issue
Arkansas Enacts $140M TBED Package
With all of the recent activity from its state legislature, Arkansas will soon possess one of the nation's most
comprehensive portfolios of state-supported TBED initiatives. A number of TBED-related acts passed by the
Arkansas General Assembly this session have all received Gov. Mike Beebe's signature. The result could be a

Most of the new TBED initiatives were outlined in the 2007 Legislative Agenda created by Accelerate Arkansas,
an independent statewide coalition organized under the Arkansas Economic Acceleration Foundation. Accelerate
Arkansas' goal is to raise the state's average wage to the national average by 2020, a goal to be advanced by

Every component of the legislative agenda proposed by Accelerate Arkansas was accepted by the legislature.
The General Assembly also passed additional TBED legislation during the recent session, including authorization
for research parks, broadband access, and R&D tax credits. The package rounds out the complement of the

The new legislation authorizes maximum spending levels for a variety of specific TBED activities to be
undertaken during the 2007-2009 biennial budget cycle. Gov. Beebe is given the discretion to spend less than the
maximum levels, providing a flexibility to reallocate resources that is not often available to state executive
Many of the new measures will be supported by an anticipated surplus in state revenues - projected to be around
$917 million when the fiscal year ends on June 30. The legislature decided the funds will be distributed between
public school facilities ($456 million), highway improvements ($80 million) and other legislature-initiated projects,
resulting in about $196 million to be used for programs within the executive branch. Gov. Beebe has authorization

$40 million for the Arkansas Risk Capital Matching Fund, to provide financing to knowledge-based companies
throughout Arkansas in early stages of development;
$40 million for STEM Supplemental Income Grants, designed to provide up to $10,000 for teachers who
specialize in science, technology, engineering, and math. These funds to retain and hire qualified teachers will be
$33.5 million for research grants administered by the Arkansas Science and Technology Authority, including $12
million for research matching funds, $12 million for centers for applied technology, and $7 million for bioscience
$20 million for the Seed Capital Investment Program, providing up to $500,000 in capitalization for tech-based
$3 million to create Innovate Arkansas, a new nonprofit organization that will contract with state government to
support the needs of start-up companies, being modeled on the i2E (innovation to enterprise) Inc. program in
$500,000 to establish the Arkansas Research Alliance, a not-for-profit corporation modeled after the Georgia
Research Alliance, designed to identify and encourage job-creating scientific research and recommend strategic
$200,000 to create and fund the Task Force for the 21st Century, collecting 17 individuals to study economic
development and global competitiveness in Arkansas.

The 2007 Legislative Agenda of Accelerate Arkansas can be found at:

SSTI Weekly Digest - April 9, 2007 Issue
$50M Tech Fund Makes Cut for Maine Bond Package
A $295 million three-part bond referendum package passed by the Maine State Legislature last week includes a
number of components central to the state’s TBED strategy, including funds to support continued development of
the state’s research enterprise, expanded broadband access and increased rural/economic development

The largest TBED item provides $50 million for the Maine Technology Fund to support research, development,
and commercialization efforts of Maine-based public and private entities. The funds are limited to the state’s
targeted fields of biotechnology, marine technology, composite materials, environmental technology, forestry and

Additionally, the package includes $48.5 million for improvements at the University of Maine and the state
community college system and $2 million for revitalizing downtowns and expanding access to digital resources

Several revolving loan funds also will be replenished with a combined pool of $6.5 million, including the Maine
Maritime Academy and School Revolving Loan Fund, the FAME Economic Development Revolving Loan and the
Rural Development Fund, the Regional Development Loan Program, and the Agriculture Marketing Loan Fund.

The bond measures will be put to the voters as three separate items with the first $131.4 million offering focused
primarily on transportation issues being considered in June. The $134 million November installment includes the
TBED, education, cultural, and traditional economic development elements described above. The final measure

SSTI Weekly Digest - April 9, 2007 Issue
Mississippi Rolls Out Five New Capital-attracting Funds
One of the most vexing problems facing states, outside of a few well known success stories, is a persistent lack
of attention from the venture capital industry. In 2006, almost 60 percent of venture capital investment was
concentrated in California and Massachusetts. The other 48 states have had to devise their own strategies to
compete with Silicon Valley, Route 128 and each other to gain the attention of potential investors. Mississippi, for
example, attracted only two venture investment deals and only $8 million in VC investment last year, according to
To help remedy Mississippi's situation, the state legislature recently approved a package authorizing five new
state funds to support early-stage high-tech companies and to build an in-state market for private equity
investment. The funds will be administered by the Mississippi Technology Alliance (MTA), a nonprofit organization
that works closely with the state to provide services to investors and entrepreneurs. Gov. Haley Barbour’s budget

The state will dedicate almost half of the funding to one of the funds to assist start-up, seed and early-stage
Mississippi-based businesses. To be eligible, the companies must have a business plan, reach a collaborative
agreement with a state institution of higher education or community college, and secure a match from an
accredited investor. The fund will provide loans for up to $100,000 per year in qualified expenses, for a total of

The four remaining programs are similar in design but address specific situations or needs, such as: early-stage
businesses without outside investment; university technology spinoffs; and early- and late-stage high-tech firms in

In addition to providing capital to small businesses and an incentive for outside investment, Gov. Barbour says
the new programs will stimulate collaborative research between the state’s research institutions and businesses,
accelerate the rate of new business formation, and encourage promising high-tech industries.

House Bill 1724 is available at:

SSTI Weekly Digest - May 14, 2007 Issue
Hawaii Legislature Passes Several Innovation Measures
While legislators did not agree to all of Gov. Linda Lingle’s Innovation Initiative – including a $100 million
innovation fund - some of the governor’s original concepts emerged from several other bills at the close of the

The legislature passed a number of measures to promote science, technology, engineering and math (STEM)
education, a major priority in the governor’s innovation package. SB 885 establishes the Career and Technical
Education program within the state Department of Education and provides $5 million over the biennium for
several technical education initiatives. Among those are Gov. Lingle’s proposals for the Hawaii Excellence

Under HB 1630, Project EAST (environmental and spatial technology via experiential learning) will be maintained
in existing schools and expanded to schools statewide. Project EAST incorporates cutting-edge technology into
school curriculum in order to prepare students for high technology-based careers. Additional acts that incorporate

HB 1083 establishes a $5 million R&D follow-on funding program for small businesses that received federal
funding in the fields of science and engineering to develop and commercialize defense-related dual-use
SB 907 renames the Office of Space Industry to the Office of Space Development and provides $500,000 to
identify and promote opportunities for expanding and diversifying aerospace-related industries in the state.
HB 1003 creates the Hawaii Natural Energy Institute at the University of Hawaii and a special fund to develop
renewable energy and energy efficient technologies.
HB 226 creates a task force on reduction of greenhouse gas emissions and requires emissions to be cut to 1990

Gov. Lingle introduced the Innovation Initiative during her State of the State Address earlier this year. Her
proposal included the creation of a $100 million fund using money from the State Employees Retirement System
(ERS) for several key innovation initiatives (see the Jan. 22 issue of the Digest ). SB 1365 originally included the
$100 million allocation and funding for the University of Hawaii Office of Tech Transfer and Economic

Gov. Lingle introduced similar legislation last session under the Innovation Special Fund, which was tabled by
session’s end (See the May 8, 2006 issue of the Digest).
An act passed by the legislature that requires high-technology businesses with investors claiming the High
Technology Business Investment Tax Credit to publicly disclose their business name and status is still being
considered by Gov. Lingle. The goal of HB 1631 is to measure the effectiveness of the tax credits so lawmakers
can better evaluate whether they should remain in place beyond the expiration date of 2010. According to the
bill’s language, accurate information with respect to the efficiency of the credit is lacking. The state Department of

The fiscal year 2007-09 biennial budget includes $4.8 million annually in state funds for the High Technology
Development Corporation (HTDC). In addition, SB 896 appropriates $150,000 in FY 2007-08 and $250,000 the
following year for HTDC to create commercial wet lab space located within a life sciences research complex near

SSTI Weekly Digest - April 9, 2007 Issue
Canada Launches 5-year, $900M Aerospace and Defense Initiative
To promote excellence and accelerate innovation in the nation's aerospace, defence, security and space
industries, Canada earlier this month launched the Strategic Aerospace and Defence Initiative (SADI) -- a
repayable contribution program being administered by Industry Canada's Industrial Technologies Office (ITO).

Canadian aerospace, defence, security and space industries are knowledge-intensive and major contributors to
Canada's economy. The aerospace sector, alone, had sales of $21.8 billion and exports of $18.5 billion and
employed 75,000 highly skilled-and-paid Canadians in 2005. SADI is expected to invest nearly $900 million over

SADI was developed with three objectives in mind: (1) to encourage strategic R&D that will result in innovation
and excellence in new products and services; (2) to provide enhanced opportunities for Canadian A&D industries;
and (3) to foster collaboration between research institutes, colleges, universities and the private sector. By
investing in strategic R&D projects, ITO will concentrate its resources on projects that involve the development of
technologies that focus on next generation products or services, build on Canadian strengths, enable Canadian
companies to participate in major platforms, and assist in meeting Canada's international obligations. Each

SADI's repayment structure will be formula-based and standardized. Repayments on contributions will be based
on gross business revenues of a recipient company, or its relevant division which lowers the risk to the
government. The repayment will start regardless of the success of the technology developed. On average,
repayment periods will be limited to 15 years, with repayments starting shortly after the completion of the R&D

More information about the Strategic Aerospace and Defence Initiative can be found on ITO's website at

SSTI Weekly Digest - January 8, 2007 Issue
New Jersey Appropriates $270M to Build Biomedical and Stem Cell Research Facilities
Last month, New Jersey Gov. Jon Corzine signed a bill that will contribute $270 million to the construction of five
biotechnology research facilities across the state. The funding source will be bonds backed up by cigarette tax
revenue, as issued by the New Jersey Economic Development Authority. Gov. Corzine believes the state is at a
strategic moment to accumulate "a critical mass of scientists, researchers, doctors and physical facilities" ahead

The proposal includes:

$150 million to build and equip a stem cell research institute at Rutgers University in New Brunswick, which will be
named for the late actor, New Jersey native, and stem cell research advocate Christopher Reeve;
$50 million for a biomedical research facility in downtown Camden;
$50 million for an adult stem cell research facility in Newark at the New Jersey Institute of Technology;
$10 million for the Garden State Cancer Center in Bellville; and,
$10 million for an umbilical cord blood collection program in Allendale.
In addition to this investment, $10 million has been allocated from the state budget to award stem cell research
projects this fiscal year. The New Jersey Commission on Science and Technology will distribute these funds, with
$7 million directed to 2-3 embryonic stem cell research facilities not supported by federal funding and the other $3

Upon approval by the New Jersey legislature, a referendum that would provide an additional $230 million for stem
cell research grants could be placed before the voters on the November ballot.

Additional information from the New Jersey Commission on Science and Technology on stem cell research,
including instructions to attain research grants in 2007, can be found at:

Pennsylvania Launches $90M to Boost Clean Energy Innovation
Many states are now pursuing seed and venture investment strategies to support the growth of clean energy
businesses. Last month, Pennsylvania concluded a year-long series of meetings with private sector investors,
financial experts, and nonprofit state energy funds and introduced a $90 million strategy to leverage public and
private capital for renewable energy. The plan links economic development and environmental protection in a

The centerpiece of this new strategy is the creation of the $40 million Keystone Green Fund (the Fund), which will
provide private equity and debt investments, venture capital placements, and project financing for projects related
to alternative power sources. The state Treasury Department is pledging $15 million of these funds to support the
commercialization of clean energy technologies. Recipients, which must have a direct business connection to
Pennsylvania, will be considered for additional investment by Pennsylvania's sustainable energy funds, including

This will be the first time Pennsylvania's clean energy funds have pooled their resources to promote businesses
across the state. The remaining $25 million from the Fund will be invested in companies or projects that offer an
attractive return on state investment and offer more general benefits for the state's energy independence.

An additional $50 million will be earmarked for equity investments in alternative energy companies and
technologies. The Treasury Department will reallocate these funds from existing investment managers to
managers who can demonstrate a history of profitable investment in clean energy companies. Treasurer Bob

Pennsylvania Gov. Ed Rendell also announced $5.1 million in awards through the state's Energy Harvest Grant
Program this month. The program, which has existed since 2003, has spent $21 million and leveraged an
additional $51.9 million for projects that make use of solar, wind, biomass, geothermal, biodigestion and landfill
methane gas technologies. The governor made 27 such awards to updating business facilities and practices to

Read the Keystone Green Investment Strategy at:

SSTI reported on the creation of the Energy Harvest Grant Program in 2003. You can access the original report

Louisiana Injects $28.5M for TBED
The Louisiana Recovery Authority and the Louisiana Board of Regents recently unveiled a $28.5 million Research
Commercialization and Educational Enhancement Program to stimulate economic development within the
portions of the state severely impacted by Hurricanes Rita and Katrina. Funds for this program originate from the

State officials report how Louisiana suffered $400 million in damage to research facilities and infrastructure after
the hurricanes. Furthermore, officials report the aggressive recruitment of key research faculty by out-of-state
institutions as another threat to future development and economic recovery. While Louisiana had a strong pre-
hurricane research capacity, it lacked a coordinated and focused strategy to drive new company creation, market

The highlights of the RC/EEP program include the following components:
Create an Eminent Scholars Program, similar to that of the Georgia Research Alliance, to promote the retention
of faculty and the recruitment of researchers. Funds will be allocated to support salary increases, conference
Provide additional funds to ameliorate research capacity, such as laboratory reconstruction, scientific equipment
Generate an entity to encourage the development of technology in the pre-business phase, especially scientific
Promote the active participation of existing faculty to develop the STEM environment of the state by utilizing
salary enhancements, summer funding, and release time as incentives.
Expand student education and training through need-based and merit-based support.
Enhance research training by providing research opportunities for undergraduate students.

Separately, Louisiana universities are now allowed to invest public funds in private stocks as a result of a recent
ballot initiative to amend the state Constitution. Until recently, reinvesting public funds such as profits derived from
oil and gas drilling was not permitted by the Constitution. More conservative investment strategies have been
traditionally used, such as bonds, which normally produce a lower return on investment than stocks. The

The proposal for the Research Commercialization and Educational Enhancement Program can be found at:

The original ballot initiative to modify the state Constitution of Louisiana is available at:

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