SF3664
Department of Employment and Economic Development unfunded programs repealer and conforming changes provision
Legislative Session 94 (2025-2026)
Related bill: HF3732
AI Generated Summary
Purpose
- Repeal and replace certain unfunded programs of the Department of Employment and Economic Development.
- Reorient economic development funding toward redevelopment projects with clear public benefits and toward green economy initiatives.
- Update and align several Minnesota statutes and related rules to support redevelopment, job creation, environmental benefits, and regional growth.
Key Provisions and What They Do
Priority for Redevelopment Grants (116J.575 Subd 1a)
- When grant applications exceed available money, prioritize projects that deliver high public benefits at public cost.
- Public benefits include: job creation, bioscience development, environmental benefits, efficient use of public transit and infrastructure, affordable housing, and multiuse development that rebuilds communities.
- Priority factors (not ranked): contamination cleanup, redevelopment tied to tax increment financing (TIF), redevelopment potential in the municipality, proximity to public transit (metro area), bioscience expansion, affordable housing, green economy promotion, and consideration of transportation and environmental impact.
- The commissioner may weigh factors as appropriate and may consider other factors that affect the overall return to public benefits.
- Requirement to distribute grants across the state: at least 50% of money should go to sites outside the metropolitan area if there are qualifying projects; grants should go to both metro and nonmetro sites.
Eligible Projects and Evaluation (116J.8731 Subd 4)
- Evaluation is based on multiple conditions, not just one: 1) Creation of new jobs, retention of existing jobs, or improvements in wages/skills. 2) Increase in the tax base. 3) Evidence that public dollars attract private funds. 4) Demonstrated high costs of infrastructure or improvements that exceed the community’s or participants’ ability to pay. 5) Higher wage levels or added value to the local workforce. 6) Support for microenterprises (small businesses). 7) Whether assistance helps retain or attract out-of-state business. 8) Whether the project promotes/advances the green economy.
- A grant or loan cannot be approved based on a single criterion; multiple criteria must be shown.
Green Economy and Coordinated Policy
- The bill emphasizes “green economy” activities, defined (see Appendix) to include renewable energy, energy efficiency, greenhouse gas reductions, water quality, biofuels, and green chemistry.
- Establishes coordination efforts among state agencies to promote green enterprise and speed approvals for green economy projects.
- Examples of green economy uses include leveraging energy savings, reducing emissions, and improving environmental quality as part of economic development.
Clean Water Revolving Fund Enhancements (446A.07 Subd 8 and 9)
- Uses of the Clean Water Revolving Fund (CWRF) include debt refinancing for treatment works, guarantees or insurance to improve credit access, revenue security for debt service, and administration costs.
- New subsidy provisions:
- Up to 25% of project costs (maximum $1,000,000) for green infrastructure, water/energy efficiency, or other environmentally innovative activities.
- Up to 50% of project costs (maximum $3,000,000) for projects addressing emerging contaminants.
- Payments must follow state and federal law, with specific financial safeguards (e.g., cost estimates, binding commitments to use funds for the project, and securing funds via loans or bonds).
Economic Response and Other Programs (Sec. 3 and related)
- The bill continues or expands programs related to economic development, including a framework for supportive assistance tied to green economy goals.
- Provisions related to tourism-related loan programs and other supports, as defined in the statutes, may be referenced here as part of the overall economic development toolkit.
Repeals and Rule Revisions (Sec. 5)
- Repeals several older Minnesota statutes related to economic development and environmental policy (116J.437, 116J.438, 116J.617, 116J.658, 116J.872).
- Repeals Minnesota Rules part 3300.0500 subparts 1, 2a, 3, 4, 5, and 6.
- The repeal reflects a shift away from older, unfunded programs toward the revised set of tools described above.
Fast-Action Economic Response Team
- Establishes or continues a fast-action team within the department to contact at-risk businesses or those considering expansion or relocation within 24 hours.
- Aims to speed up support and decision-making for businesses facing strategic decisions.
Definitions and Organizational Guidance (Appendix)
- Includes a formal definition of “green economy” and describes how it fits into the coordinated economic development framework.
- Sets expectations for coordinated participation among state agencies, public universities, and private sector partners to advance science, technology, and economic growth.
Significant Changes to Existing Law
- Shifts funding emphasis from old, unfunded programs to redeveloped sites with measurable public benefits and to green economy projects.
- Expands and clarifies criteria for grant/loan decisions to require multiple benefits (jobs, tax base, private leverage, affordability, etc.).
- Broadens the role and funding support for green infrastructure, water quality, and emerging contaminants through the Clean Water Revolving Fund with specific cost-sharing subsidies.
- Repeals several older statutes and rules, consolidating policy under revised guidelines and definitions (notably around green economy and redevelopment).
- Introduces a fast-action economic response mechanism to speed outreach to businesses.
Quick Implications
- More emphasis on brownfield/redevelopment projects that combine housing, transit access, and environmental benefits.
- Increased use of state funds to leverage private investment, with attention to rural/nonmetro distribution.
- Greater focus on environmental quality and green economy activities within economic development.
Relevant Terms - public benefits - redevelop/ redevelopment - job creation / job retention - bioscience development - green economy - tax increment financing (TIF) - affordable housing - public transit / proximity to transit - contamination remediation / brownfield - environmental benefits / green infrastructure - emerging contaminants - Clean Water Revolving Fund (CWRF) - energy efficiency - renewable energy - greenhouse gas emissions reduction - microenterprises - private funds leverage / private investment - out-of-state business attraction - revolving fund / grants and loans - loan guarantees - fast-action economic response team - Minnesota Green Enterprise Assistance - coordinated economic development and environmental policy
Bill text versions
- Introduction PDF PDF file
Past committee meetings
- Jobs and Economic Development on: March 11, 2026 12:30
- Jobs and Economic Development on: March 16, 2026 12:30
- Jobs and Economic Development on: March 09, 2026 12:30
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 19, 2026 | Senate | Action | Introduction and first reading | ||
| February 19, 2026 | Senate | Action | Referred to | Jobs and Economic Development |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 116J.575, subdivision 1a, regarding grant priorities for redevelopment sites.",
"modified": [
"Alters the priority criteria used by the commissioner when awarding grants for redevelopment projects."
]
},
"citation": "116J.575",
"subdivision": "1a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 116J.8731, subdivision 4, to set criteria for eligible projects.",
"modified": [
"Revises the conditions that must be demonstrated for grant/assistance eligibility (job creation/retention, tax base, public-private investment dynamics, cost concerns, wage/value improvements, microenterprises, retention/attraction considerations, and green economy alignment)."
]
},
"citation": "116J.8731",
"subdivision": "4"
},
{
"analysis": {
"added": [
"Expands permissible uses of the clean water revolving fund to include additional subsidization and related purposes under federal law."
],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 446A.07, subdivision 8, regarding the use of the clean water revolving fund.",
"modified": [
"Specifies authorized uses such as debt financing/guarantees/insurance mechanisms and related fund activities aligned with the federal Water Pollution Control Act."
]
},
"citation": "446A.07",
"subdivision": "8"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 446A.07, subdivision 9, governing payments from the clean water revolving fund.",
"modified": [
"Clarifies payment determinations and conditions, including cost estimates, financing arrangements, and irrevocable commitments related to project funding."
]
},
"citation": "446A.07",
"subdivision": "9"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced in the repealing and definitional context of the Coordinating Economic Development and Environmental Policy; defines Green Economy within 116J.437.",
"modified": [
"Defines Green Economy for purposes of the bill, including elements like energy, emissions, water, and green infrastructure focus."
]
},
"citation": "116J.437",
"subdivision": "2.5"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Minnesota Green Enterprise Assistance section; provisions relating to interagency collaboration and project administration.",
"modified": [
"Reorganizes or clarifies roles and activities of the multiagency project to promote green enterprise and related approvals."
]
},
"citation": "116J.438",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"116J.617 subdivisions 1-4 repealed."
],
"summary": "Repeals Minnesota Statutes 116J.617 subdivisions 1 through 4 as part of the repealer package.",
"modified": []
},
"citation": "116J.617",
"subdivision": "1,2,3,4"
},
{
"analysis": {
"added": [],
"removed": [
"116J.658 repealed."
],
"summary": "Repeals Minnesota Statutes 116J.658 as part of the repealer package.",
"modified": []
},
"citation": "116J.658",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"116J.872 repealed."
],
"summary": "Repeals Minnesota Statutes 116J.872 as part of the repealer package.",
"modified": []
},
"citation": "116J.872",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cross-reference to Minnesota Statutes 446A.072, subdivision 3 within Sec.3 related to revolving fund subsidies.",
"modified": [
"Programs reference 446A.072, subdivision 3 as the basis for specific subsidy levels for green infrastructure and emerging contaminants."
]
},
"citation": "446A.072",
"subdivision": "3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References to the Federal Water Pollution Control Act governing revolving fund uses and subsidies.",
"modified": [
"Authorizes expanded uses of the Clean Water Revolving Fund and related subsidies (principal forgiveness, grants, etc.) under federal law."
]
},
"citation": "Federal Water Pollution Control Act",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites Federal Regulations, Title 13, Section 121.2, in the context of historical references to standards applicable to revolving funds.",
"modified": [
"Incorporates reference to federal regulatory standards as part of historical provision cross-references."
]
},
"citation": "Federal Regulations Title 13 Section 121.2",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "General federal-law reference for water quality and funding provisions used in Sec.3.",
"modified": [
"Expands subsidization/uses consistent with federal law (e.g., sections and definitions linked to 303e, 205j, etc.)."
]
},
"citation": "Federal Water Pollution Control Act",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites Section 303e of the Federal Water Pollution Control Act.",
"modified": [
"References water quality planning requirements tied to federal act."
]
},
"citation": "Federal Water Pollution Control Act section 303e",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites Section 205j of the Federal Water Pollution Control Act.",
"modified": [
"References water quality planning and related federal requirements."
]
},
"citation": "Federal Water Pollution Control Act section 205j",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Green energy standard referenced as part of the green economy definitions and goals.",
"modified": [
"Connects green economy provisions to Minnesota standards for renewable energy."
]
},
"citation": "216B.1691",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References the statewide energysavings goal for energy efficiency programs.",
"modified": [
"Aligns project funding with energy savings targets."
]
},
"citation": "216B.2401",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References greenhouse gas emission reduction goals (subdivision 1).",
"modified": [
"Links project outcomes to GHG reduction goals."
]
},
"citation": "216H.02",
"subdivision": "1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References Clean Water Legacy Act purposes (surface water protection).",
"modified": [
"Connects fund uses to legacy water protection objectives."
]
},
"citation": "114D.10",
"subdivision": "1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites petroleum replacement goals as part of green economy provisions.",
"modified": [
"Incorporates energy/petroleum transition objectives into funding considerations."
]
},
"citation": "239.7911",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References to workforce skills and wage-related project outcomes.",
"modified": [
"Supports higher wage levels and workforce development within the project criteria."
]
},
"citation": "216B.241",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Minnesota Statutes 103F.725, subdivision 1a, referenced in Sec.4 regarding terms for tourism-related loans.",
"modified": [
"Connects tourism loan program terms to state financing provisions."
]
},
"citation": "103F.725",
"subdivision": "1a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References to the broader statutory framework for tourism and economic development financing (17.117).",
"modified": [
"Contextualizes cross-reference within financing provisions."
]
},
"citation": "17.117",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Minnesota Statutes 462A.05 cross-referenced in Sec.4 for payments/financing considerations.",
"modified": [
"Links to municipal financing and bonding provisions within project funding."
]
},
"citation": "462A.05",
"subdivision": ""
}
]Progress through the legislative process
In Committee