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    Subdivision 1. Greenhouse gas emissions reduction goal. It is the goal of the state to
reduce statewide greenhouse gas emissions across all sectors producing those emissions to a level
at least 15 percent below 2005 levels by 2015, to a level at least 30 percent below 2005 levels by
2025, and to a level at least 80 percent below 2005 levels by 2050. The levels shall be reviewed
based on the climate change action plan study.
    Subd. 2. Climate change action plan. By February 1, 2008, the commissioner of commerce,
in consultation with the commissioners of the Pollution Control Agency, the Housing Finance
Agency, and the Departments of Natural Resources, Agriculture, Employment and Economic
Development, and Transportation, and the chair of the Metropolitan Council, shall submit to the
legislature a climate change action plan that meets the requirements of this section.
    Subd. 3. Stakeholder process. The plan required by subdivision 2 must be developed
through a structured, broadly inclusive stakeholder-based review of potential policies and
initiatives that will reduce statewide greenhouse gas emissions from a broad range of sources and
activities. The commissioner shall engage a nationally recognized independent expert entity to
conduct the stakeholder process. The report of the stakeholder process must form the basis for
the plan submitted by the commissioner under subdivision 2.
    Subd. 4. General elements of the plan. The plan must:
    (1) estimate 1990 and 2005 greenhouse gas emissions in the state and make projections of
emissions in 2015, 2025, and 2050;
    (2) identify, evaluate, and integrate a broad range of statewide greenhouse gas reduction
options for all emission sectors in the state;
    (3) assess the costs, benefits, and feasibility of implementing the options;
    (4) recommend an integrated set of reduction options and strategies for implementing the
options that will achieve the goals in subdivision 1, including analysis of the associated costs
and benefits to Minnesotans;
    (5) estimate the statewide greenhouse gas emissions reductions anticipated from
implementation of existing state policies;
    (6) recommend a system to require the reporting of statewide greenhouse gas emissions,
identifying which facilities must report, and how emission estimates should be made; and
    (7) evaluate the option of exempting a project from the prohibitions contained in section
216H.03, subdivision 3, if the project contributes a specified fee per ton of carbon dioxide
emissions emitted annually by the project, the proceeds of which would be used to fund
permanent, quantifiable, verifiable, and enforceable reductions in greenhouse gas emissions that
would not otherwise have occurred.
    Subd. 5. Specific plan requirements. (a) The plan must evaluate and recommend interim
goals as steps to achieve the goals in subdivision 1.
    (b) The plan must determine the feasibility, assess the costs and benefits, and recommend
how the state could adopt a regulatory system that imposes a cap on the aggregate air pollutant
emissions of a group of sources, requires those subject to the cap to own an allowance for each
ton of the air pollutant emitted, and allows for market-based trading of those allowances. The
evaluation must contain an analysis of the state implementing a cap and trade system alone,
in coordination with other states, and as a requirement of federal law applying to all states.
The plan must recommend the parameters of a cap and trade system that includes a cap that
would prevent significant increases in greenhouse gas emissions above current levels with a
schedule for lowering the cap periodically to achieve the goals in subdivision 1 and interim
goals recommended under paragraph (a). The plan must consider cost savings and cost increases
on energy consumers in the state.
    (c) The plan must include recommendations for improvements in the emissions inventory
and recommend whether the state should require greenhouse gas emissions reporting from specific
sources and, if so, which sources should be required to report. The plan must also evaluate options
for an emissions registry after reviewing registries in other states and recommend a registry that
will insure the greatest opportunity for Minnesota entities to obtain marketable credits.
    Subd. 6. Regional activities. The state must, to the extent possible, with other states in
the Midwest region, develop and implement a regional approach to reducing greenhouse gas
emissions from activities in the region, including consulting on a regional cap and trade system.
The commissioner of commerce shall coordinate Minnesota's regional activities under this
subdivision and report to the legislative committees in the senate and house of representatives with
jurisdiction over energy and environmental policy by February 1, 2008, and February 1, 2009, on
the progress made and recommendations for further action. The commissioner of commerce, as
part of the activities required under this subdivision, must meet with responsible officials from
bordering states, other states in the Midwest region, and states in other regions of the country to:
(1) determine whether other states are interested in establishing and cooperating in a
multistate or regional greenhouse gas cap and trade allowance program;
(2) identify and prepare an inventory of greenhouse gas reduction resources available to
support a multistate or regional greenhouse gas cap and trade allowance program;
(3) seek cooperation on a regional inventory of greenhouse gas emission sources; and
(4) prepare an inventory of available renewable energy resources within a state or region.
The commissioner of commerce must develop a definition of scope of this regional activity that is
in addition to the components described in clauses (1) to (4). The commissioner must report on
the additional scoping definitions to the chairs and ranking minority members of the legislative
committees with jurisdiction over energy and environmental finance and policy on or before the
commencement of the 2008 regular legislative session.
History: 2007 c 136 art 5 s 2

Official Publication of the State of Minnesota
Revisor of Statutes