5.5. ERMUSR 03-19-2013 - Laserfiche WebLink

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MNBAFIIA414P OfFiffriapno Climate Change Background The issue of global climate change has created growing concern. This concern has given rise to a discussion of new proposed state requirements that would either further reduce electric usage or would impose new renewable mandates on Minnesota's electric utility industry. These proposals include: • Increasing the required energy savings from the Conservation Improvement Program (CIP). • Increasing the State's Renewable Energy Standard (RES). • Requiring a similar RES exclusively for solar energy. Position Statement • Increasing the Net Metering threshold requirements. If adopted, these new proposals would be added to significant existing state requirements imposed over the years for the purpose of dealing with climate change. These include: • Prohibiting new base load coal generation after August 2009. • Requiring electric utilities to meet an annual energy conservation goal of 1.5 %. • Establishing a state renewable energy standard (RES) that requires power producers to secure 25% of their sales from renewable energy sources by 2025. These combined measures have resulted in an aggressive approach for reducing greenhouse gas emissions that is as strong as or stronger ,than that of any state in the country. However, municipal utilities in Minnesota are now strained to the limit in meeting the present standards 8 / 2013 State Position Statements and requirements. We are concerned that further requirements beyond the present level of effort on the state level will produce diminishing returns while possibly leading to decreased reliability and make Minnesota businesses leave the state because of sharply increased costs. The most effective approach in dealing with climate change could very well come from the federal, rather than the state government. The federal government, through the Environmental Protection Agency (EPA), has developed a comprehensive, national regulatory strategy (see graphic on facing page) to deal with greenhouse gas reduction that mirrors the agency's traditional approach in regulating pollution for the past 40 years. This far - reaching strategy is now being implemented on a national scale and is represented by a number of actions that have occurred in the past 6 years. • In 2007, the Supreme Court held that carbon dioxide and other greenhouse gases are covered by the Clean Air Act's broad definition of air pollutants, and as such, EPA must decide whether these gases endanger public health or welfare