LANSING ? The first legislative vote on putting a $2 billion technology jobs bond proposal before Michigan’s voters fell short Wednesday. The Senate Commerce, Labor and Economic Development Appropriations Subcommittee voted along party lines against expanding SB 533 from its current $1 billion to the $2 billion proposed by Gov. Jennifer Granholm.

The subcommittee held off sending the bill to the entire Senate Appropriations Committee, allowing more time for discussion on some issues like adding funding for alternative energy programs. The subcommittee was meeting Thursday to vote the bill out.

And Chair Sen. Valde Garcia (R-Howell) said Senate leaders hope to have the bill and SJR C clear the chamber by June 10.

Labor and Economic Growth Director David Hollister said the meeting Wednesday represented progress, even though the proposal was half what Granholm had proposed and did not include a provision allowing the state to make equity investments in targeted companies.

“Our reception has been fairly positive in the Senate,” Hollister said.

He said the final proposal that goes to the public will be somewhere between $1 billion and $2 billion, “That’s how it works around here.”

But SB 533 does not allow for investments – as loans or grants – specifically in alternative energy, although it does allow for investments in advanced automotives.

Jim Croce, executive director of NextEnergy, a nonprofit corporation founded under former Governor John Engler to promote development of new energy sources, said the state could lose major investments if alternative energy research and development is not included.

That could include a major development from Rolls Royce, which is considering Michigan along with Ohio for a project on fuel cell development, he said. Investment in advanced automotive research would not cover research and development either in fuels or in stationary or portable energy generation, Croce said.

Hollister also said alternative energy research would be critical to agricultural development in the state.

Garcia said he worried that adding a provision for alternative energy development would dilute the impact of the funds.

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