<a id="pl.1.2"></a><var>1.2</var>memorializing the governor to incorporate certain principles into a Regional <br/>
<a id="pl.1.3"></a><var>1.3</var>Greenhouse Gas Emission Reduction Cap and Trade Accord.<br/>
<a id="pl.1.4"></a><var>1.4</var>WHEREAS, the Legislature established a goal in Minnesota Statutes, section 216H.02, <br/>
<a id="pl.1.5"></a><var>1.5</var>subdivision 1, for the reduction of statewide greenhouse gas emissions across all sectors of at <br/>
<a id="pl.1.6"></a><var>1.6</var>least 15 percent below 2005 levels by 2015, 30 percent by 2025, and 80 percent by 2050; and <br/>
<a id="pl.1.7"></a><var>1.7</var>WHEREAS, the Legislature ordered the commissioner of commerce in Minnesota Statutes, <br/>
<a id="pl.1.8"></a><var>1.8</var>section 216H.02, subdivision 6, to make efforts to create and implement a regional approach for <br/>
<a id="pl.1.9"></a><var>1.9</var>the reduction of greenhouse gas emissions, including the creation of a regional cap and trade <br/>
<a id="pl.1.10"></a><var>1.10</var>system; and <br/>
<a id="pl.1.11"></a><var>1.11</var>WHEREAS, Governor Tim Pawlenty joined with the leaders of Wisconsin, Illinois, Iowa, <br/>
<a id="pl.1.12"></a><var>1.12</var>Michigan, Kansas, and Manitoba in signing the Midwestern Regional Greenhouse Gas Reduction <br/>
<a id="pl.1.13"></a><var>1.13</var>Accord in November 2007; and <br/>
<a id="pl.1.14"></a><var>1.14</var>WHEREAS, the accord stated that the signatories will work to "jointly endeavor to ... <br/>
<a id="pl.1.15"></a><var>1.15</var>develop a market-based and multi-sector cap-and-trade mechanism to help achieve greenhouse <br/>
<a id="pl.1.16"></a><var>1.16</var>gas reduction targets;"; and <br/>
<a id="pl.1.17"></a><var>1.17</var>WHEREAS, a model rule for the cap and trade system, titled the Midwestern Greenhouse <br/>
<a id="pl.1.18"></a><var>1.18</var>Gas Reduction Program, will be developed by November 15, 2008; and <br/>
<a id="pl.1.19"></a><var>1.19</var>WHEREAS, the cap and trade system created by the members of the Midwestern Regional <br/>
<a id="pl.1.20"></a><var>1.20</var>Greenhouse Gas Reduction Accord is expected to be a crucial part of Minnesota's plan to reach the <br/>
<a id="pl.1.21"></a><var>1.21</var>goals established in Minnesota Statutes, section 216H.02, subdivision 1; NOW, THEREFORE, <br/>
<a id="pl.2.1"></a><var>2.1</var>BE IT RESOLVED by the Legislature of the State of Minnesota that it strongly encourages <br/>
<a id="pl.2.2"></a><var>2.2</var>the governor to work with other signatories to the Midwestern Greenhouse Gas Reduction Accord <br/>
<a id="pl.2.3"></a><var>2.3</var>to develop a regional cap and trade program that enables Minnesota to achieve the greenhouse gas <br/>
<a id="pl.2.4"></a><var>2.4</var>emissions reductions goals established in Minnesota Statutes, section 216H.02, subdivision 1;<br/>
<a id="pl.2.5"></a><var>2.5</var>BE IT FURTHER RESOLVED that the Legislature provides the following list of principles <br/>
<a id="pl.2.6"></a><var>2.6</var>to the governor with the recommendation that they should be incorporated into the Midwestern <br/>
<a id="pl.2.7"></a><var>2.7</var>Greenhouse Gas Reduction Accord. The principles are that any cap and trade program:<br/>
<a id="pl.2.8"></a><var>2.8</var>(1) should cover as many emitting sectors as is administratively feasible, but excluding <br/>
<a id="pl.2.9"></a><var>2.9</var>sectors from which emissions cannot be reliably quantified;<br/>
<a id="pl.2.10"></a><var>2.10</var>(2) should provide that the allowances created under a cap and trade system should accrue <br/>
<a id="pl.2.11"></a><var>2.11</var>to the benefit of the public. To the extent that allowances are distributed through an auction, <br/>
<a id="pl.2.12"></a><var>2.12</var>the revenue would help consumers and energy-intensive industries pay their energy costs and <br/>
<a id="pl.2.13"></a><var>2.13</var>reduce their energy costs more quickly. Business concerns about paying the cost of allowances <br/>
<a id="pl.2.14"></a><var>2.14</var>must be balanced with benefit to the public;<br/>
<a id="pl.2.15"></a><var>2.15</var>(3) should allow auctions to be phased in if necessary to protect consumers and industries <br/>
<a id="pl.2.16"></a><var>2.16</var>from sudden price increases, but only if protections are in place to ensure that windfall profits do <br/>
<a id="pl.2.17"></a><var>2.17</var>not accrue to entities allocated allowances during the transition;<br/>
<a id="pl.2.18"></a><var>2.18</var>(4) should be designed to obtain the emission reductions necessary to meet the cap from the <br/>
<a id="pl.2.19"></a><var>2.19</var>capped sectors themselves rather than from sectors outside the cap;<br/>
<a id="pl.2.20"></a><var>2.20</var>(5) should not increase the emissions cap by permitting the issuance of allowances beyond <br/>
<a id="pl.2.21"></a><var>2.21</var>the limits specified in section 216H.02; and<br/>
<a id="pl.2.22"></a><var>2.22</var>(6) should provide for equity to communities at risk of disproportionate economic and <br/>
<a id="pl.2.23"></a><var>2.23</var>environmental impacts.<br/>
<a id="pl.2.24"></a><var>2.24</var>BE IT FURTHER RESOLVED that the Secretary of State of the State of Minnesota is <br/>
<a id="pl.2.25"></a><var>2.25</var>directed to prepare copies of this memorial and transmit them to the governor of the State of <br/>
<a id="pl.2.26"></a><var>2.26</var>Minnesota<br/>