1. (1) As used in this section:

   1. (a) "Institute board" means the same as that term is defined in Section 53H-16-201.
   2. (b) "Nucleus Institute" means the Nucleus Institute created in Section 53H-16-202.
   3. (c) "Program" means the pilot grant program for research funding described in this section.

2. (2)

   1. (a) There is established a pilot competitive grant program known as the Higher Education Research Funding Pilot Program.

   2. (b) The board shall distribute funding for grant applications the board approves under the prioritization and recommendation process described in Subsections (3) and (4) using the following funding allocation:

      1. (i) for research institutions described in Subsection 53H-3-602(1)(b)(i), 75-85% of available research funding; and
      2. (ii) for applied research projects at regional institutions described in Subsection 53H-3-602(1)(b)(ii), 15-25% of available research funding.

3. (3) To apply for research funding under the program, the president of an institution shall:

   1. (a) review and prioritize prospective grant applications; and
   2. (b) submit prioritized grant applications to the board.

4. (4)

   1. (a) The board shall:

      1. (i) develop a funding application and establish a scoring rubric to prioritize applications based on the following criteria:

         1. (A) expected impact;
         2. (B) connection to Utah industries;
         3. (C) relevance to state economic development or public policy needs;
         4. (D) potential for commercialization;
         5. (E) the available proportion of matching funds; and
         6. (F) opportunities for student participation;

      2. (ii)

         1. (A) make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish eligible research areas, in consultation with industry representatives, the institute board, the Department of Workforce Services, the Governor's Office of Economic Development, and the Economic Development and Workforce Services Interim Committee;
         2. (B) review and update the eligible research areas described in Subsection (4)(a)(ii)(A) at least once every three years; and
         3. (C) ensure that the eligible research areas described in Subsection (4)(a)(ii)(A) reflect the state's priority industry clusters and public policy needs and include critical minerals projects that are consistent with the strategic plan of the Critical Minerals Council created under Subsection 79-10-302(1);
      3. (iii) review all grant applications the board receives for each funding allocation described in Subsection (2)(b); and
      4. (iv) based on the scoring described in Subsection (4)(a)(i), approve research grants.

   2. (b) The board may delegate the board's duties of administration and review described in Subsections (4)(a)(i), (4)(a)(ii), and (4)(a)(iii) to:

      1. (i) the institute board;
      2. (ii) the Talent, Education, and Industry Alignment Board; or
      3. (iii) an ad hoc committee that the board establishes for the administration of the program.
   3. (c) The board may use up to 1% of legislative appropriations for the program to administer the program.

5. (5) The board shall report annually to the Higher Education Appropriations Subcommittee and the Economic Development and Workforce Services Interim Committee on:

   1. (a) the eligible research areas described in Subsection (4)(a)(ii) and the extent to which the areas reflect the state's priority industry clusters and public policy needs, including critical minerals projects described in Subsection (4)(a)(ii)(C); and

   2. (b) key metrics for the program, including:

      1. (i) the number and type of approved research projects under the program, categorized by institution; and
      2. (ii) highlights of the impact of the approved research projects.

Enacted by Chapter 138, 2026 General Session