1.1 	A bill for an act
1.2 	relating to economic development; providing direction to conform the state's 
1.3 	economic development policies with the state's environmental policy; requiring 
1.4 	a report;amending Minnesota Statutes 2006, section 116J.8731, subdivision 
1.5 	4; Minnesota Statutes 2007 Supplement, section 116J.575, subdivision 1a; 
1.6 	proposing coding for new law in Minnesota Statutes, chapter 116J.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. [116J.437] COORDINATING ECONOMIC DEVELOPMENT AND 
1.9 	ENVIRONMENTAL POLICY.
1.10 		Subdivision 1.Definitions. For the purpose of this section, "green economy" means 
1.11 	products, processes, methods, technologies, or services intended to do one or more of 
1.12 	the following:
1.13 	(1) increase the use of energy from renewable sources, as defined in section 
1.14 	216B.1691;
1.15 	(2) increase the energy efficiency of the electric utility infrastructure system or 
1.16 	increase energy conservation related to electricity use, as provided in sections 216B.2401 
1.17 	and 216B.241;
1.18 	(3) reduce greenhouse gas emissions, as defined in section 216H.01, subdivision 
1.19 	2, or mitigate greenhouse gas emissions through, but not limited to, carbon capture, 
1.20 	storage, or sequestration;
1.21 	(4) monitor, protect, restore, and preserve the quality of surface waters; or
1.22 	(5) expand use of biofuels, including by expanding the feasibility or reducing the 
1.23 	cost of producing biofuels or the types of equipment, machinery, and vehicles that can use 
1.24 	biofuels.
2.1 	For the purpose of clause (3), "green economy" includes strategies that reduce carbon 
2.2 	emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass 
2.3 	transit or otherwise reducing commuting for employees. 
2.4 		Subd. 2.Coordinating economic development and environmental policy. The 
2.5 	commissioner and the Jobs Skills Partnership Board shall cooperate to promote job 
2.6 	training that complements green economy business development.

2.7 	Sec. 2. Minnesota Statutes 2007 Supplement, section 116J.575, subdivision 1a, is 
2.8 	amended to read:
2.9 		Subd. 1a.Priorities. (a) If applications for grants exceed the available 
2.10 	appropriations, grants shall be made for sites that, in the commissioner's judgment, provide 
2.11 	the highest return in public benefits for the public costs incurred. "Public benefits" include 
2.12 	job creation, bioscience development, environmental benefits to the state and region, 
2.13 	efficient use of public transportation, efficient use of existing infrastructure, provision of 
2.14 	affordable housing, multiuse development that constitutes community rebuilding rather 
2.15 	than single-use development, crime reduction, blight reduction, community stabilization, 
2.16 	and property tax base maintenance or improvement. In making this judgment, the 
2.17 	commissioner shall give priority to redevelopment projects with one or more of the 
2.18 	following characteristics:
2.19 	(1) the need for redevelopment in conjunction with contamination remediation needs;
2.20 	(2) the redevelopment project meets current tax increment financing requirements 
2.21 	for a redevelopment district and tax increments will contribute to the project;
2.22 	(3) the redevelopment potential within the municipality;
2.23 	(4) proximity to public transit if located in the metropolitan area; 
2.24 	(5) redevelopment costs related to expansion of a bioscience business in Minnesota; 
2.25 	and
2.26 	(6) multijurisdictional projects that take into account the need for affordable housing, 
2.27 	transportation, and environmental impact; or
2.28 	(7) the project advances or promotes the green economy as defined in section 
2.29 	116J.437.
2.30 	(b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the 
2.31 	commissioner may weigh each factor, depending upon the facts and circumstances, as 
2.32 	the commissioner considers appropriate. The commissioner may consider other factors 
2.33 	that affect the net return of public benefits for completion of the redevelopment plan. The 
2.34 	commissioner, notwithstanding the listing of priorities and the goal of maximizing the 
2.35 	return of public benefits, shall make grants that distribute available money to sites both 
3.1 	within and outside of the metropolitan area. Unless sufficient applications are not received 
3.2 	for qualifying sites outside of the metropolitan area, at least 50 percent of the money 
3.3 	provided as grants must be made for sites located outside of the metropolitan area.

3.4 	Sec. 3. Minnesota Statutes 2006, section 116J.8731, subdivision 4, is amended to read:
3.5 		Subd. 4.Eligible projects. Assistance must be evaluated on the existence of the 
3.6 	following conditions:
3.7 	(1) creation of new jobs, retention of existing jobs, or improvements in the quality of 
3.8 	existing jobs as measured by the wages, skills, or education associated with those jobs;
3.9 	(2) increase in the tax base;
3.10 	(3) the project can demonstrate that investment of public dollars induces private 
3.11 	funds;
3.12 	(4) the project can demonstrate an excessive public infrastructure or improvement 
3.13 	cost beyond the means of the affected community and private participants in the project;
3.14 	(5) the project provides higher wage levels to the community or will add value to 
3.15 	current workforce skills;
3.16 	(6) whether assistance is necessary to retain existing business; and
3.17 	(7) whether assistance is necessary to attract out-of-state business; and
3.18 	(8) the project promotes or advances the green economy as defined in section 
3.19 	116J.437.
3.20 	A grant or loan cannot be made based solely on a finding that the conditions in 
3.21 	clause (6) or (7) exist. A finding must be made that a condition in clause (1), (2), (3), 
3.22 	(4), or (5) also exists.
3.23 	Applications recommended for funding shall be submitted to the commissioner.

3.24 	Sec. 4. REPORT.
 3.25 	The commissioner of employment and economic development must analyze all state 
3.26 	grant and loan programs administered by a state agency to develop a plan specific to each 
3.27 	program to optimize the growth of the green economy, as defined in section 2, through 
3.28 	program activities. The report, along with any necessary implementing legislation, must 
3.29 	be submitted to the chairs of the legislative committees with primary jurisdiction over 
3.30 	energy, environmental, economic development, and economic development finance or 
3.31 	policy issues by January 15, 2009.