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SF 3539

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to economic development; providing direction to conform the state's
economic development policies with the state's environmental policy; requiring
a report; amending Minnesota Statutes 2006, section 116J.8731, subdivision
4; Minnesota Statutes 2007 Supplement, section 116J.575, subdivision 1a;
proposing coding for new law in Minnesota Statutes, chapter 116J.

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

Section 1.

new text begin [116J.437] COORDINATING ECONOMIC DEVELOPMENT AND
ENVIRONMENTAL POLICY.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purpose of this section, "green economy" means
products, processes, methods, technologies, or services intended to do one or more of
the following:
new text end

new text begin (1) increase the use of energy from renewable sources, as defined in section
216B.1691;
new text end

new text begin (2) increase the energy efficiency of the electric utility infrastructure system or
increase energy conservation related to electricity use, as provided in sections 216B.2401
and 216B.241;
new text end

new text begin (3) reduce greenhouse gas emissions, as defined in section 216H.01, subdivision
2, or mitigate greenhouse gas emissions through, but not limited to, carbon capture,
storage, or sequestration;
new text end

new text begin (4) monitor, protect, restore, and preserve the quality of surface waters; or
new text end

new text begin (5) expand use of biofuels, including by expanding the feasibility or reducing the
cost of producing biofuels or the types of equipment, machinery, and vehicles that can use
biofuels.
new text end

new text begin For the purpose of clause (3), "green economy" includes strategies that reduce carbon
emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass
transit or otherwise reducing commuting for employees.
new text end

new text begin Subd. 2. new text end

new text begin Coordinating economic development and environmental policy. new text end

new text begin The
commissioner and the Jobs Skills Partnership Board shall cooperate to promote job
training that complements green economy business development.
new text end

Sec. 2.

Minnesota Statutes 2007 Supplement, section 116J.575, subdivision 1a, is
amended to read:


Subd. 1a.

Priorities.

(a) If applications for grants exceed the available
appropriations, grants shall be made for sites that, in the commissioner's judgment, provide
the highest return in public benefits for the public costs incurred. "Public benefits" include
job creation, bioscience development, environmental benefits to the state and region,
efficient use of public transportation, efficient use of existing infrastructure, provision of
affordable housing, multiuse development that constitutes community rebuilding rather
than single-use development, crime reduction, blight reduction, community stabilization,
and property tax base maintenance or improvement. In making this judgment, the
commissioner shall give priority to redevelopment projects with one or more of the
following characteristics:

(1) the need for redevelopment in conjunction with contamination remediation needs;

(2) the redevelopment project meets current tax increment financing requirements
for a redevelopment district and tax increments will contribute to the project;

(3) the redevelopment potential within the municipality;

(4) proximity to public transit if located in the metropolitan area;

(5) redevelopment costs related to expansion of a bioscience business in Minnesota;
deleted text begin and
deleted text end

(6) multijurisdictional projects that take into account the need for affordable housing,
transportation, and environmental impactnew text begin ; or
new text end

new text begin (7) the project advances or promotes the green economy as defined in section
116J.437
new text end .

(b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the
commissioner may weigh each factor, depending upon the facts and circumstances, as
the commissioner considers appropriate. The commissioner may consider other factors
that affect the net return of public benefits for completion of the redevelopment plan. The
commissioner, notwithstanding the listing of priorities and the goal of maximizing the
return of public benefits, shall make grants that distribute available money to sites both
within and outside of the metropolitan area. Unless sufficient applications are not received
for qualifying sites outside of the metropolitan area, at least 50 percent of the money
provided as grants must be made for sites located outside of the metropolitan area.

Sec. 3.

Minnesota Statutes 2006, section 116J.8731, subdivision 4, is amended to read:


Subd. 4.

Eligible projects.

Assistance must be evaluated on the existence of the
following conditions:

(1) creation of new jobs, retention of existing jobs, or improvements in the quality of
existing jobs as measured by the wages, skills, or education associated with those jobs;

(2) increase in the tax base;

(3) the project can demonstrate that investment of public dollars induces private
funds;

(4) the project can demonstrate an excessive public infrastructure or improvement
cost beyond the means of the affected community and private participants in the project;

(5) the project provides higher wage levels to the community or will add value to
current workforce skills;

(6) whether assistance is necessary to retain existing business; deleted text begin and
deleted text end

(7) whether assistance is necessary to attract out-of-state businessnew text begin ; and
new text end

new text begin (8) the project promotes or advances the green economy as defined in section
116J.437
new text end .

A grant or loan cannot be made based solely on a finding that the conditions in
clause (6) or (7) exist. A finding must be made that a condition in clause (1), (2), (3),
(4), or (5) also exists.

Applications recommended for funding shall be submitted to the commissioner.

Sec. 4. new text begin REPORT.
new text end

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