SF 3742

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

1.1A resolution
1.2memorializing the governor to incorporate certain principles into a Regional
1.3Greenhouse Gas Emission Reduction Cap and Trade Accord.
1.4WHEREAS, the Legislature established a goal in Minnesota Statutes, section 216H.02,
1.5subdivision 1, for the reduction of statewide greenhouse gas emissions across all sectors of at
1.6least 15 percent below 2005 levels by 2015, 30 percent by 2025, and 80 percent by 2050; and
1.7WHEREAS, the Legislature ordered the commissioner of commerce in Minnesota Statutes,
1.8section 216H.02, subdivision 6, to make efforts to create and implement a regional approach for
1.9the reduction of greenhouse gas emissions, including the creation of a regional cap and trade
1.10system; and
1.11WHEREAS, Governor Tim Pawlenty joined with the leaders of Wisconsin, Illinois, Iowa,
1.12Michigan, Kansas, and Manitoba in signing the Midwestern Regional Greenhouse Gas Reduction
1.13Accord in November 2007; and
1.14WHEREAS, the accord stated that the signatories will work to "jointly endeavor to ...
1.15develop a market-based and multi-sector cap-and-trade mechanism to help achieve greenhouse
1.16gas reduction targets;"; and
1.17WHEREAS, a model rule for the cap and trade system, titled the Midwestern Greenhouse
1.18Gas Reduction Program, will be developed by November 15, 2008; and
1.19WHEREAS, the cap and trade system created by the members of the Midwestern Regional
1.20Greenhouse Gas Reduction Accord is expected to be a crucial part of Minnesota's plan to reach the
1.21goals established in Minnesota Statutes, section 216H.02, subdivision 1; NOW, THEREFORE,
2.1BE IT RESOLVED by the Legislature of the State of Minnesota that it strongly encourages
2.2the governor to work with other signatories to the Midwestern Greenhouse Gas Reduction Accord
2.3to develop a regional cap and trade program that enables Minnesota to achieve the greenhouse gas
2.4emissions reductions goals established in Minnesota Statutes, section 216H.02, subdivision 1;
2.5BE IT FURTHER RESOLVED that the Legislature provides the following list of principles
2.6to the governor with the recommendation that they should be incorporated into the Midwestern
2.7Greenhouse Gas Reduction Accord. The principles are that any cap and trade program:
2.8(1) should cover as many emitting sectors as is administratively feasible, but excluding
2.9sectors from which emissions cannot be reliably quantified;
2.10(2) should provide that the allowances created under a cap and trade system should accrue
2.11to the benefit of the public. To the extent that allowances are distributed through an auction,
2.12the revenue would help consumers and energy-intensive industries pay their energy costs and
2.13reduce their energy costs more quickly. Business concerns about paying the cost of allowances
2.14must be balanced with benefit to the public;
2.15(3) should allow auctions to be phased in if necessary to protect consumers and industries
2.16from sudden price increases, but only if protections are in place to ensure that windfall profits do
2.17not accrue to entities allocated allowances during the transition;
2.18(4) should be designed to obtain the emission reductions necessary to meet the cap from the
2.19capped sectors themselves rather than from sectors outside the cap;
2.20(5) should not increase the emissions cap by permitting the issuance of allowances beyond
2.21the limits specified in section 216H.02; and
2.22(6) should provide for equity to communities at risk of disproportionate economic and
2.23environmental impacts.
2.24BE IT FURTHER RESOLVED that the Secretary of State of the State of Minnesota is
2.25directed to prepare copies of this memorial and transmit them to the governor of the State of
2.26Minnesota