5.3. ERMUSR 02-12-2008 - Laserfiche WebLink

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Minnesota Municipa/ Uti/ities Association Climate Change Position Statement Minnesota's public power systems recognize that that Congress is placing a high priority on global climate change as one of the most significant environmental policy issue confronting the nation. In response to these concerns, the 2007 Minnesota State Legislature passed several aggressive legislative proposals dealing with the climate change issue, including: • a renewable energy standard for electric utilities of 25% by the year 2025, • annual conservation savings for electric utilities of 1.5% per year, • a limit on new base load generation after August 2009 unless there are carbon offsets, and • an aggressive climate change stakeholder-based study to assess appropriate strategies, including a Minnesota, region-wide, or national greenhouse gas cap- and-trade program. These are aggressive state level actions directed toward reducing Minnesota's greenhouse gas emissions at a time when other states are also moving to address potential climate change. However, a patchwork of single-state or even regional fossil fuel registration and cap-and-trade programs would not be an effective nor economical approach to the climate change problem. Such unilateral action or action even by groups of states would not correlate to large regional wholesale electric markets as they exist. Such efforts would not take into consideration the fact that small scale programs cannot influence international cooperation. Furthermore, they would not recognize the competitive disadvantage such unilateral action may place on businesses and jobs in Minnesota and all other states. We need to respond to the climate change challenge as a series of issues that transcend state boundaries. Toward that end, we need to develop comprehensive and forward- looking national solutions that ensure a reliable and cost-effective supply of energy. We believe that Congress should concentrate its efforts on pushing for smart and effective national climate change legislation that confronts all economic sectors, recognizes the country's crucial need for fuel diversity, offers appropriate incentives and credits, and acknowledges potential adverse impacts to U.S. energy security and the economy. Minnesota's public power systems would support and participate actively in these efforts. Minnesota Municipal Utilities Association February 2008