During his keynote address at this month's renewable energy conference in St. Louis, President Bush informed attendees that the number of U.S. ethanol plants is expected to increase 40 percent in 2007. As the market for biofuels like ethanol grows, many states are creating plans to support businesses and research that can fill the current need for renewable alternatives at the pump. Among the states having taken steps to build a profitable alternative fuels industry and cleaner and safer highways are Michigan and Tennessee.

The Michigan Innovation Equipment Depot has distributed its first round of life science research equipment to start-ups around the state. The Depot program, developed by Pfizer, Ann Arbor SPARK, MichBio and Michigan's SmartZones, redistributes previously used life science laboratory equipment to new Michigan companies. More than $655,000 and 131 items were awarded in the inaugural round to 18 applicants. The value of this equipment ranged from $25 to $125,000 -- an average of $4,404 per item.

Following months of debate that ended in a veto last month by Gov. Jennifer Granholm, an agreement was made last week on a $600 million tax relief package for businesses, which now awaits the governor's anticipated signature. Gov.

After several months of debate regarding a number of economic development initiatives, Michigan Gov. Jennifer Granholm signed into law a major economic stimulus bill. However, unhappy with portions of a separate tax break package for businesses, the governor vetoed two of the 10 bills.

The latest in SSTI's annual "Tech Talkin' Govs" series. Five earlier installments of this 2005 review of governors' legislative priorities concerning tech-based economic development are available through the Digest online: http://www.ssti.org/Digest/digest.htm

Michigan

As the only state to have a net job loss in 2004, Michigan's political leadership recognizes something must change. The state's shifting economy, from one defined principally by its manufacturing sector to one that derives growth equally from knowledge-based industries, is at the center of the matter. Michigan policymakers are challenged to create innovative proposals that preserve one facet of the economy while broadening the other.

Mike Koop, deputy commissioner of the Tennessee Department of Community & Economic Development, is resigning effective March 1 to return to the private sector.

The University of Michigan announced last month that it will spend $30 million in the next five years to hire an additional 100 junior tenure-track faculty members to build multidisciplinary research and degree programs.

Daniel Krichbaum was named Gov. Jennifer Granholm's new chief operating officer, replacing Mary Lannoye who left the administration as chief of staff.

Automation Alley has named Thomas Anderson as president of the Automation Alley Education & Research Institute. Mr. Anderson also is director of the consortium's Technology Center.

David Hollister announced he will leave his position as director of the Michigan Department of Labor and Economic Growth on Feb. 3, to head Prima Civitas, a newly formed nonprofit agency promoting economic development.

A number of regional economic development organizations in Tennessee have formed a partnership called Innovation Valley Inc. Partners in Innovation Valley Inc. include the Blount County Chamber of Commerce, Knoxville Area Chamber Partnership, Loudon County Economic Development Agency, Oak Ridge Economic Partnership, The Roane Alliance and Tellico Reservoir Development Agency.