SF 1173

as introduced - 93rd Legislature (2023 - 2024) Posted on 06/21/2023 09:14am

A bill for an act
relating to economic development; modifying the community energy transition
grant program; appropriating money; amending Minnesota Statutes 2022, section
116J.55, subdivisions 1, 5, 6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 116J.55, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this section, "eligible community" means
a county, municipality, or tribal government located in Minnesota in which an electric
generating plant owned by a public utility, as defined in section 216B.02, that is powered
by coal, nuclear energy, or natural gas:

(1) is currently operating and new text begin (i) new text end is scheduled to cease operations deleted text begin or deleted text end new text begin , (ii) new text end whose cessation
of operations has been proposed in an integrated resource plan filed with the commission
under section 216B.2422 new text begin , or (iii) whose current operating license expires within 15 years
of the effective date of this section new text end ; or

(2) ceased operations or was removed from the local property tax base no earlier than
five years before the date an application is made for a grant under this section.

Sec. 2.

Minnesota Statutes 2022, section 116J.55, subdivision 5, is amended to read:

Subd. 5.

Grant awards; limitations.

deleted text begin (a) The commissioner must award grants under
this section to eligible communities through a competitive grant process.
deleted text end

deleted text begin (b) deleted text end new text begin (a) new text end A grant awarded to an eligible community under this section must not exceed
deleted text begin $500,000 deleted text end new text begin $1,000,000 in any calendar year. The commissioner may accept grant applications
on an ongoing or rolling basis new text end .

deleted text begin (c) deleted text end new text begin (b) new text end Grants funded with revenues from the renewable development account established
in section 116C.779 must be awarded to an eligible community located within the retail
electric service territory of the public utility that is subject to section 116C.779 or to an
eligible community in which an electric generating plant owned by that public utility is
located.

Sec. 3.

Minnesota Statutes 2022, section 116J.55, subdivision 6, is amended to read:

Subd. 6.

Eligible expenditures.

(a) Money in the account established in subdivision 3
must be used only to:

(1) award grants to eligible communities under this section; and

(2) reimburse the department's reasonable costs to administer this section, up to a
maximum of five percent of the appropriation made to the commissioner under this section. new text begin
The commissioner may transfer part of the allowable administrative portion of this
appropriation to the Environmental Quality Board to assist communities with regulatory
coordination and dedicated technical assistance on conversion for these communities.
new text end

(b) An eligible community awarded a grant under this section may use the grant to plan
for or address the economic and social impacts on the eligible community of the electric
generating plant's cessation of operations, including but not limited to new text begin land use studies,
economic planning, new text end researching, planning, and implementing activities new text begin , capital costs of
public infrastructure necessary for economic development, and impact studies and other
planning activities enabling communities to become shovel-ready and support the transition
from power plants to other economic activities to minimize the negative impacts of power
plant closures on tax revenues and jobs new text end designed to:

(1) assist workers at the plant find new employment, including worker retraining and
developing small business start-up skills;

(2) increase the eligible community's property tax base; and

(3) develop alternative economic development strategies to attract new employers to the
eligible community.

Sec. 4. new text begin APPROPRIATIONS; COMMUNITY ENERGY TRANSITION GRANTS.
new text end

new text begin $5,000,000 in fiscal year 2024 and $5,000,000 in fiscal year 2025 are appropriated from
the general fund to the commissioner of employment and economic development for the
community energy transition grant program under Minnesota Statutes, section 116J.55.
These appropriations are onetime and are available until expended.
new text end