1.1                          A bill for an act 
  1.2             relating to minerals; creating a taconite processing 
  1.3             new technology grant program; appropriating money.  
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [TACONITE PROCESSING TECHNOLOGY GRANTS.] 
  1.6      Subdivision 1.  [GRANT ELIGIBILITY.] The commissioner of 
  1.7   natural resources shall distribute grants to iron mining 
  1.8   companies to demonstrate new taconite processing technology that 
  1.9   provides one or more of the following benefits:  
  1.10     (1) reduced energy consumption; 
  1.11     (2) reduced environmental emissions; 
  1.12     (3) improved productivity; or 
  1.13     (4) improved pellet quality.  
  1.14     Subd. 2.  [GRANT APPLICATION AND REVIEW.] The commissioner 
  1.15  of natural resources shall solicit applications from all 
  1.16  taconite processing facilities in the state.  Applications shall 
  1.17  be reviewed and recommendations provided by a panel of technical 
  1.18  experts from Minnesota's taconite industry.  Grants shall be 
  1.19  awarded based on the magnitude of potential benefits to the 
  1.20  mining industry and to the state.  
  1.21     Subd. 3.  [USE OF GRANT MONEY.] Grant money shall be used 
  1.22  only for the costs of capital and testing, including equipment, 
  1.23  installation, start-up, sampling, analysis, and reporting costs. 
  1.24  Information generated with grant money shall be public data 
  2.1   under Minnesota Statutes, section 13.03.  
  2.2      Subd. 4.  [MATCHING FUNDS.] (a) The commissioner of natural 
  2.3   resources shall require a grant recipient to match state grant 
  2.4   money by:  
  2.5      (1) providing on a one-to-one basis nonstate cash or cash 
  2.6   equivalent funding, which may include the full cost of company 
  2.7   employees engaged in project work or the costs of equipment used 
  2.8   for the duration of the project; and 
  2.9      (2) transferring ownership of Mesabi Range mineral reserves 
  2.10  that meet the following conditions: 
  2.11     (i) have unmined taconite with 23 percent minimum magnetic 
  2.12  iron content; 
  2.13     (ii) have an open pit stripping ratio of less than 1.5 to 
  2.14  1; 
  2.15     (iii) be unencumbered by existing or planned surface 
  2.16  development; 
  2.17     (iv) be substantially unencumbered by past mining activity; 
  2.18     (v) have marketable title for both surface and mineral 
  2.19  interests held by the contributor; 
  2.20     (vi) have at least three million tons of taconite reserves 
  2.21  per each $100,000 of state grant money received; 
  2.22     (vii) have both surface and mineral ownership conveyed 
  2.23  together; and 
  2.24     (viii) be in an area that could reasonably be expected to 
  2.25  be mined within 50 years.  
  2.26     (b) Surface and mineral interests contributed under 
  2.27  paragraph (a) remain the property of the state after the grant 
  2.28  project concludes.  Revenues generated from contributed property 
  2.29  shall be deposited in the state treasury and credited to the 
  2.30  general fund.  
  2.31     Sec. 2.  [APPROPRIATION.] 
  2.32     $1,000,000 is appropriated from the general fund to the 
  2.33  commissioner of natural resources for grants to iron mining 
  2.34  companies under section 1.  The appropriation is available until 
  2.35  expended.