Minnesota Wraps Up Landmark Legislative Session on Energy
Last week, Minnesota’s Republican Governor Tim Pawlenty signed into law landmark global warming and energy efficiency legislation.
The bills include a requirement for an economy-wide climate change action plan to be submitted to the state legislature by February 1, 2008. The plan must provide a roadmap to cut emissions 80 percent below 2005 levels by 2050. A Minnesota Climate Change Advisory Group was recently created by Pawlenty and charged with developing and presenting this plan to lawmakers.
In addition, the Minnesota Public Utilities Commission is directed to estimate and factor in the costs of future federal CO2 regulation (for example, a carbon tax) when it examines proposals for a new power supply.
Energy efficiency – the cheapest, fastest, easiest way to cut emissions – finally got its due with a law that calls for increasing efficiency 25 percent by 2025. Pilot projects are planned that encourage energy savings without loss of revenues for utilities (i.e. a “decoupling” strategy that aims to make a utility indifferent to selling less energy because of restructured rates). In a news release from Clean Energy Minnesota, Sheldon Strom of the Center for Energy and Environment pointed out:
“We’ll reach Minnesota’s global warming goals in large part through saving, rather than consuming, those kilowatts of electricity or therms of natural gas…It is the most consumer-friendly way to fight global warming.”
Michael Noble, Executive Director of the nonprofit energy policy organization Fresh Energy, explained to me why it’s important for states to take action on a global problem:
“With the U.S. on the sidelines, global action on the climate warming problem is stalled. To get the U.S. government moving, innovation must percolate up from the states. State action on global warming is reaching a tipping point, and major changes seem increasingly inevitable. Minnesota is the latest example of states setting the bar higher.”
This global warming and efficiency legislation wraps up a banner year for Minnesotans. Earlier this spring, lawmakers also passed and Governor Pawlenty signed a Renewable Energy Standard requiring 25 percent of the state’s energy to come from renewables sources by 2020.
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