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Cap-and-trade resolution approved

Published (3/21/2008)
By Nick Busse
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A House division approved a resolution designed to give legislators a voice in regional talks to develop a cap-and-trade system for reducing greenhouse gas emissions.

HF4060, sponsored by Rep. Kate Knuth (DFL-New Brighton), would ask Gov. Tim Pawlenty to take certain principles into account when developing a cap-and-trade program with other signatories to the Midwestern Regional Greenhouse Gas Reduction Accord, including that such a program should:

• include as many emitting industries as possible;

• leave open the possibility of distributing emission allowances through auctions;

• obtain the reductions through the capped sectors themselves rather than those outside the cap; and

• not issue allowances that would exceed the cap.

Under a cap-and-trade system, a strict limit would be placed on the overall amount of greenhouse gas emissions that could be produced in the state. Emitters could then buy and sell emission allowances to one another.

The Pawlenty administration is currently negotiating with other Midwestern governors to develop a model cap-and-trade program that could be implemented on a region-wide basis. Department of Commerce officials have asked lawmakers not to pass any cap-and-trade legislation that could potentially impact the negotiations.

Rep. Doug Magnus (R-Slayton) worries that Knuth’s resolution would do just that.

“I think it’s fine we make a statement of support, but I hate to do something here that hinders the negotiations,” Magnus said.

Knuth said her resolution would merely lay out some “very broad principles,” adding, “This is not saying the governor has to negotiate this.”

Rep. Kathy Brynaert (DFL-Mankato) praised the resolution as a way of “giving a voice to a legislative presence in the negotiations.”

The House Energy Finance and Policy Division approved the bill March 14 and sent it to the House floor. A companion, SF3742, sponsored by Sen. Ellen Anderson (DFL-St. Paul), awaits action by the Senate Business, Industry and Jobs Committee.

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