Green Jobs Proposals in Minnesota

Minneapolis, MN President-elect Barack Obama's choice of California congresswoman Hilda Solis as Labor Secretary highlights the significance the incoming administration is placing on clean renewable energy and the contributing role of green jobs. Rep. Solis is a key supporter of green jobs and, as a member of the House Energy and Commerce Committee, she sponsored the "Green Jobs Act of 2007" (H.R. 2847), which was signed into law as part of the 2007 Energy Independence and Security Act.

According to a report prepared by Global Insight¹, the potential for national green job growth is strong. Green jobs generally include jobs in the environmental and renewable energy sectors of the economy and may address issues related to design, policy, and technology to improve conservation and sustainability. In addition to upcoming federal green job efforts, several states are seeking to promote green jobs, including Minnesota, California and Oregon. In Minnesota, Governor Tim Pawlenty recently announced a "Green Jobs Investment Initiative" that includes the following proposals for the 2009 Minnesota Legislature:


	1.	*Green JOBZ Program.* Qualifying projects would receive tax-free incentives currently available to companies in the state’s JOBZ Program (exemption from corporate franchise tax; income tax for operators or investors, including capital gains tax; sales tax on goods and services used in the zone if the goods and services were purchased during the duration of the zone; property tax on commercial and industrial improvements but not on land; wind energy production tax; and employment tax credit for high paying jobs) for 12 years on any agreements executed through 2015.

	2.	*Job Growth Investment Tax Credit.* This credit would increase the availability of financing to emerging companies around Minnesota by creating tax incentives for investments in regional investment funds. Fifty percent of the tax credits would be focused on green job projects that promote the state’s renewable energy goals. The total amount of tax credits available would be $20 million over four years.

	3.	*Small Business Investment Tax Credit.* This tax credit would provide $60 million in tax incentives to insurance companies for investments in certified capital companies, which would be required to invest in qualified businesses in Minnesota with less than 100 employees each. Half of the tax credits would be focused on green job growth. Certified capital companies are state-sanctioned venture capital firms that are funded by insurance companies.

	4.	*Biomethane and Solar Power Conservation Credits.* Incentives to expand the production and infrastructure for biomethane, solar, and other renewable energy projects will help Minnesota support the next round of technologies related to renewable energy development. The proposed policies will provide incentives to expand projects like landfill waste-to-energy, methane digesters, and on-farm anaerobic methane digesters. Natural gas utilities would receive a credit toward their annual energy savings for meeting the state’s energy conservation policy goal for biomethane purchased by or produced on their distribution system. Electric utilities would receive a credit toward their annual energy savings for meeting the state’s energy conservation policy goal for solar power purchased by or produced on their distribution system for projects larger than currently allowed in state law.

Also, at the Minnesota Environmental Initiative’s legislative conference on December 17, 2008, House Speaker Margaret Anderson Kelliher proposed establishing a Minnesota Green Jobs Academy in early 2009 to train Minnesotans so that they are ready to implement the federal and state green jobs programs.

The Minnesota Department of Employment and Economic Development reports that there is potential to add more than 114,000 green jobs in the next 30 years.

For more information, contact Ashley Henry, Energy Industry Liaison, 503-294-9506, ahenry@stoel.com

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