By Rep. Paul Anderson
Governor Mark Dayton delivered his annual “State of the State” message to a joint session of the Minnesota Legislature last week. He promoted his tax system overhaul, but didn’t mention the most controversial part of it, the sales tax revision. His plan to broaden the base of taxable items, while at the same time lowering the tax rate has drawn considerable comment, most of which has been negative. The other major aspect of his plan, the addition of a fourth tier tax rate for high income-earners in Minnesota, hasn’t received the same attention as the sales tax revision.
Gov. Dayton talked about the strides Minnesota has made during the first two years he’s been in office, such as job creation and a lower unemployment rate than the rest of the nation. Later, he criticized past administrations and legislatures for “failed practices that didn’t work.” That was a bit frustrating because the Legislature, at least in the past two years – the same two years Dayton has been in office – has done a credible job of controlling the increase in state spending. As a result, in that same two-year timeframe, the state’s projected deficit has decreased substantially, while its reserve accounts have been fully replenished and a big share of the education shift has been re-paid.
A major budget forecast will be released at the end of this month, after which the governor can make revisions to his budget plan and the Legislature will begin in earnest the procedure to come up with its own spending plan.
I’ve received several inquiries from livestock producers and electrical contractors concerning new federal emission regulations that go into effect in May for various engines. There seems to be general confusion on just how these new standards, known as the RICE Rules, are to be met. Of particular concern are the requirements for diesel engines used to power stand-by generators.
One contractor told me that after the rules were finalized by the EPA last month, he was sent 230 pages of information. It appears that farmers must decide by Feb. 22 whether to opt in or stay out of the process. The problem with not going along with the new rules is that it would disqualify a farmer from receiving a lower electric rate in return for the power company being able to shut off his regular electric service during peak demand periods. According to a power company official I visited with, they budget about 80 hours per year that they shut off a livestock producer’s electricity. During those shutdowns, electricity would be provided by a back-up generator, usually powered by a diesel engine. Those 80 hours are above the 50-hour limit at which these new rules take effect.
It would appear the rules are aimed at mandating the use of higher quality diesel fuel and the new Tier 4 engines, both of which are admirable goals that will lower emissions. However, according to one generator manufacturer, the new engines won’t be available until the year 2015. As a result, the deadlines of Feb. 22 to inform the power company and May 3 to comply with these new EPA rules are problematic.
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