Bill Text: MI HB5599 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Economic development; other; green to gold revolving loan fund act; provide for. Creates new act.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2012-05-09 - Printed Bill Filed 05/09/2012 [HB5599 Detail]
Download: Michigan-2011-HB5599-Introduced.html
HOUSE BILL No. 5599
May 8, 2012, Introduced by Reps. Brunner, Smiley, Hammel, Dillon, Ananich and Hovey-Wright and referred to the Committee on Commerce.
A bill to provide for establishing and administering a program
for awarding loans and other economic development incentives to
certain qualified businesses; to create a fund; and to prescribe
powers and duties of certain public and state entities, officers,
and agencies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "green
to gold revolving loan fund act".
Sec. 2. As used in this act:
(a) "Advanced transportation products" means vehicles and
components of automobiles and trucks and public transit vehicles
that utilize 1 or more of the following:
(i) Hybridization or full electrification of vehicle systems.
(ii) Power electronics.
(iii) Vehicle, component, and subsystem manufacturing
technologies and processes.
(iv) Engine efficiency and combustion optimization.
(v) Waste heat recovery.
(vi) Transmission and drivetrain efficiency.
(vii) Hydrogen vehicle technologies, including fuel cells and
internal combustion engines, and hydrogen infrastructure.
(viii) Aerodynamics, rolling resistance, and accessory power
loads of vehicles and associated equipment.
(ix) Vehicle weight reduction.
(x) Friction and wear reduction.
(xi) Engine and component durability.
(xii) Innovative propulsion systems.
(xiii) Advanced boosting systems.
(xiv) Hydraulic hybrid technologies.
(xv) Engine compatibility with and optimization for a variety
of transportation fuels, including liquid and gaseous fuels.
(xvi) Predictive engineering, modeling, and simulation of
vehicle and transportation systems.
(xvii) Refueling and charging infrastructure for alternative
fueled and electric or plug-in electric hybrid vehicles, including
the unique challenges facing rural areas.
(xviii) Gaseous fuels storage system integration and
optimization.
(xix) Sensing, communications and actuation technologies for
vehicle, electrical grid and infrastructure.
(xx) Efficient use and recycling of rare earth materials and
reduction of precious metals and other high-cost materials in
vehicles.
(xxi) After-treatment technologies.
(xxii) Thermal management of battery systems.
(xxiii) Retrofitting advanced vehicle technologies to existing
vehicles.
(b) "Clean energy products" means 1 or more of the following,
including parts of each:
(i) Wind turbines.
(ii) Solar energy systems.
(iii) Fuel cells.
(iv) Advanced batteries, battery systems, or storage devices.
(v) Biomass equipment.
(vi) Geothermal equipment.
(vii) Advanced biofuels.
(viii) Ocean energy equipment.
(ix) Carbon capture and storage systems.
(c) "Fund" means the green to gold revolving loan fund
established in section 3.
(d) "Program" means the business promotion matching grant
program established under this act.
(e) "Qualified manufacturing business" means a business in
this state that does 1 or more of the following:
(i) Implements energy efficiency or renewable energy measures
in its facilities to enhance competitiveness.
(ii) Retools existing facilities in this state to produce clean
energy products or advanced transportation products or to engage in
sustainable energy practices.
(iii) Creates or retains jobs in manufacturing clean energy
products or advanced transportation products or engaging in
sustainable energy practices.
(iv) Provides worker training and establishes joint training
partnerships between management, labor, and educational
institutions to build a skilled workforce.
(f) "Strategic fund" means the Michigan strategic fund created
in the Michigan strategic fund act, 1984 PA 270, MCL 125.2001 to
125.2093.
(g) "Sustainable energy practices" means pollution control and
energy generation that involves 1 or more of the following as
determined by the strategic fund:
(i) Relates to the production, use, transmission, storage,
control, or conservation of energy.
(ii) Reduces greenhouse gas concentrations.
(iii) Achieves the earliest and maximum emission reductions
within a reasonable period per dollar invested.
(iv) Results in the fewest non-greenhouse-gas environmental
impacts.
(v) Reduces the need for additional energy supplies by using
existing energy supplies with greater efficiency or by
transmitting, distributing, or transporting energy with greater
effectiveness through the infrastructure of the United States.
(vi) Diversifies the sources of energy supply of the United
States to strengthen energy security and increase supplies with a
favorable balance of environmental effects if the entire technology
system is considered.
Sec. 3. (1) The green to gold revolving loan fund is created
in the state treasury. The state treasurer may receive money or
other assets for deposit into the fund from appropriations, other
state revenue, federal revenue, local revenue, private
contributions, or any other source. The state treasurer shall
credit interest and earnings from fund investments to the fund.
Money remaining in the fund at the close of each fiscal year shall
remain in the fund and shall not lapse to the general fund.
(2) All money received from the federal government for
assisting qualified manufacturing businesses in retooling for, or
expanding, production of clean energy products, advanced
transportation products, and sustainable energy practices shall be
used for loans under this act.
Sec. 4. (1) The strategic fund shall provide for the
development and implementation of the application, review, and
evaluation process for the program, including, but not limited to,
defining the eligibility standards, rating and ranking criteria,
and other appropriate policies and procedures for implementing a
direct loan and guarantee programs subject to all of the following
provisions:
(a) Set clear job creation requirements for loan recipients
that must be met for twice the duration of the loan. For each year
in which a loan recipient falls short on its job creation
requirement by more than 10%, the interest rate on the loan for the
following year shall be raised by 1% for each 10% job shortfall,
and the interest rate shall be raised 1/10 of 1% for each
additional 1% of job shortfall. If a company falls short more than
50% on its job creation requirement for 2 consecutive years, that
shall constitute a default on the loan.
(b) Ensure that the money being awarded will be used to create
or retain jobs in this state.
(c) Establish minimum energy savings a qualified business must
expect will result from the loan's utilization.
(d) Give priority to qualified manufacturing businesses
certified by a Hollings manufacturing extension center or a
manufacturing-related local intermediary, and projects that involve
reequipping or expanding existing manufacturing facilities,
including facilities that are idle on the date of enactment of this
act and will hire Michigan residents.
(e) Ensure that loans under this section will be distributed
to qualified manufacturing businesses throughout this state.
(f) Loans may be provided at terms and conditions below market
to the extent that the overall program remains financially viable.
(2) In addition to any other requirements in this act, all
qualified manufacturing business applicants shall demonstrate that
they meet all of the following requirements:
(a) Pay individuals employed at the manufacturing facility
wages that are, on average, equal to or more than state average
manufacturing wages and provide health benefits.
(b) Require that all laborers and mechanics employed by
contractors and subcontractors performing construction, alteration,
or repair, which are paid for in whole or in part with funds
provided by the program, shall be paid state prevailing wages.
(c) Provide an annual report to the strategic fund and to
members of the senate and house of representatives that details
total capital investments made by the qualified manufacturing
business and total employment, including wage levels by type of
work, in the prior year and the following 2 years. The applicant
also shall estimate the number of jobs created or retained through
the provision of this state assistance, as well as provide other
appropriate performance data, as determined by the strategic fund.
(d) Demonstrate that they have the ability to repay the loans.
(e) Comply with applicable federal, state, and local
environmental, labor, and other laws and regulations.
(f) Provide health insurance benefits for all full-time
employees.
(g) The employer's turnover rate has not exceeded 20% annually
at any facility where money obtained through the program will be
used.
Sec. 5. (1) Beginning October 1, 2012 and annually thereafter,
the strategic fund shall post on its website a report on the
program's activities and impact on the clean energy industry and on
the state's economy, in general.
(2) At a minimum, the report described in subsection (1) shall
include all of the following:
(a) The total amount of money in the green to gold fund, at
the beginning of the fiscal year and at the end of the fiscal year.
(b) The number of projects funded and the number of qualified
manufacturing businesses assisted.
(c) The number of jobs created and the number of jobs retained
through program assistance in each of the fiscal years.
(d) The amount of investments made by the qualified
manufacturing businesses in the immediately preceding year to their
assistance and the subsequent 2 years.
(e) The amount of federal, state, and local taxes paid by the
qualified manufacturing businesses in aggregate. Information on
publicly held qualified manufacturing businesses also shall be
reported separately.
(f) The sales increased or retained by all qualified
manufacturing businesses that received assistance.
(g) The amount of energy saved through energy efficiency
upgrades or generated through on-site renewable energy systems.
