In the past century, 50% of all our state wetlands have disappeared. In the prairie region of our state, 90% of the wetlands were lost to agricultural drainage. Despite the no- net-loss goals of the Minnesota Wetland Conservation Act, we continue to lose wetlands. In 2001-2003, 1367 acres were destroyed with no replacement. This has had a devastating effect on ducks and other migrating waterfowl.

One-fourth of our over 1200 wildlife species are considered in danger of significant decline, requiring specialized atten- tion to enhance their populations. Common loon, elk, lynx, trumpeter swans, hawks, even our namesake gophers are in decline! Habitat loss and degradation have made it difficult for these species to survive.

After testing a fifth of the state's lakes and streams, the Minnesota Pollution Control Agency estimates that we already are the land of 10,000 "impaired" waters. Because the federal Clean Water Act requires Minnesota to clean up our polluted waters, the state Appeals Court recently halted any further growth in Annandale and Maple Lake - and potentially in the 65 counties whose waters ultimately flow into the Mississippi River and Lake Pepin - because expanded development would worsen the already "severe" pollution resulting from excess phosphorus.

Population Growth

Minnesota's 2005 population of 5.2 million people is projected to rise by 250,000 in the next five years and by 2030 add another one million more people. This increase in population will add to the stress on our environment. Devel- opment decisions, energy use, and transporta- tion options for this increase will pose many challenges for state and local governments.

Greenhouse gases are a reality that threatens our environmental future and our economy. Most of the greenhouse gases are caused by electrical generation and transportation. In Minnesota, we pour over 140 million tons of carbon dioxide into our environment every year. This is an increase of 18% over 1990 levels, and emissions continue to increase at 1.7% every year.

Minnesota spends $15 billion for energy, including transportation, every year and much of that money goes right out of the state. The only homegrown sources we have are wind energy, bio-fuels, and conservation. Minnesota's dependence on oil and traditional energy sources makes us economically vulnerable and damages the environment. Reducing that dependence can improve our economic competitiveness and increase our security, while enhancing environmental sustainability.

The debate over our environmental and energy future has become extremely polarized. One side believes that most of the problems are overstated and that the market can solve most of them over time. The other favors significant government regulation to correct for obvious market failures. Most Minnesotans know that the market by itself usually can't get the whole job done on environment and energy issues. They have seen too many examples of private gain at community expense to trust everything to the market. On the other hand, Minnesotans have seen their share of overzealous government interference, where the costs exceed the gain.

The way forward lies in using market forces, government action, and personal responsibility to achieve specific results for all Minnesotans - current and future.

Energy & Environment Minnesota's Great Legacy

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Energy & Environment Minnesota's Great Legacy

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Minnesota's Clean Water Legacy Act

The CWLA provides for restoration of Minnesota waters.

Expands testing and monitoring of pollutants in our waters

Requires establishing a maximum allowable level for pollutants in our impaired waters (by watershed) and sets methods for reducing pollutants to those levels

Provides for decreasing pollution from water that flows through pipes (sewers and storm water drains) as well as from water runs directly off surrounding lands - yards, parking lots, farm fields etc.

Provides for protecting lands with important watershed value

Creates a Clean Water Council comprised of citizens and government officials to advise on policy

B. Reverse the damage already done to our waters.

• Set priorities for clean-up of waters under the Clean Water Legacy Act that was finally passed in 2006 by taking action within one year for those 500 waters posing the biggest threat to public health and our economy.
• Establish an on-going dedicated source of funding for cleaning up and maintaining our waters. [Cost = $100 million]
• Accelerate mercury reductions by:
  • Funding research on taconite production methods that capture mercury emissions.
  • Collaborating and negotiating with surrounding states to set emission caps.
  • Requiring wide public disclosure of mercury "hot spots" and health effects.

C. Maintain the health of lakes and streams that are still clean.

• Establish a no-net-increase policy for pollution and run-off going into our clean waters.
• Apply the requirements of the Clean Water Legacy Act to our clean waters.
• Require a "state-of-the-waters" posting at all publicly-accessed lakes, providing information on the status of the water and any attendant health issues

Our Principles for Winning Greater Environmental Compliance

Much of what we need to accomplish depends on achieving compliance with policies and regulations. Most often we turn first to enforcement (find 'em, catch 'em, prosecute 'em, punish 'em). Enforcement is expensive, harsh and incomplete (we can't catch everyone). We need citizens, businesses and local governments to become part of the compliance process - voluntarily. Then we can reserve enforcement for those who willfully resist. Here are our basic principles for achieving the most compliance at the lowest cost:

• Create a common understanding of the outcome to be achieved and why it is important.
• Engage those who must comply in developing mechanisms to get the results we want.
• Base regulations on performance or outcome, rather than on processes - fix the outcome but let the means vary.
• Simplify compliance measurement and reporting; increase public awareness and understanding of the reports.
• Use rewards and market incentives to encourage compliance.
• Make enforcement severe for those who refuse.

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Energy & Environment Minnesota's Great Legacy

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Sustainable Energy: Increase Efficiency, Reduce Emissions

We consume more energy every year and it costs more. Our approach to assuring Minnesota's energy future must include a combination of conservation and substitution. Energy is essential to our economic success - and it is also a threat. The threats to our economic and personal security come from our dependence on foreign oil and the production of greenhouse gases.

Fuel efficiency and alternative fuels can drive down the emissions from our cars. Energy efficiency and new technologies can reduce the threats from our electricity generation sector. Conservation is the most cost-effective way to immediately reduce both dependency on foreign oil and to reduce emissions.

No one knows precisely what the effects of greenhouse gases will be, but none of the scenarios is positive. We know that waiting for the federal government to take the lead is not an option. States must show the way. Unfortunately, Minnesota does not have a plan for either improving energy efficiency or reducing greenhouse gases.

2 Sustainable Electricity: Use Conservation and New Technology

Electrical generation in Minnesota relies, for the most part, on old, polluting technologies. Coal plants pour over 35 million tons of CO2 into Minnesota's atmosphere every year. Virtually all of our electric generating plants will need replacing in the next 30 to 50 years. This presents a unique opportunity to replace old technologies with new, cleaner electrical generation. We have no state plan for ensuring the reliable supply of electricity or for creating a cleaner environment.

Conservation can eliminate the immediate need for new electri- cal plants. Investment in cleaner technology will ensure that new plants emit fewer pollutants. And, we must make it cost-effective for individuals and businesses to adopt more en- vironmentally-friendly practices in the way they buy and use electricity.

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Energy & Environment Minnesota's Great Legacy

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Here is what Minnesota must do to reduce our dependence on imported energy and reduce greenhouse gas emissions:

A. Make Energy Conservation A Top Priority

• Set goals to reduce electricity consumption by 2% every year through conservation - make conservation profitable for utilities (decouple profitability from sales), businesses, and communities.
• Match the most effective standards in the nation for energy efficiency and conservation. Minnesota should join the 16 states and 56 American cities that have adopted the Leadership in Energy and Environmental Design (LEED) building construction and operation standards.
• Implement a Best Practices manual for energy producers, large consumers and for communities. Establish strong incentives for those who use the practices and for setting and meeting specific community goals for energy savings.
• Make zero net pollution, zero net energy dependence (zero/zero) the standard for all new or expanded state government construction, operations and purchases, including bonding projects.
• Create incentives for local governments and school districts to follow suit.

B. Substitute Current Energy Sources with Renewable Sources and New Technologies

• Cap greenhouse gas emissions with a target of achieving 1990 levels by 2020, matching the nation-leading standards just passed in California.
• Establish a cap and trade program to allow businesses to buy and trade against the caps, using market mechanisms for reducing pollution.
• Provide time limited tax incentives for early stage development of renewable energy sources and markets.
• Establish aggressive goals for the use of renewable energy (wind, solar, etc.).
• Achieve specific targets for government purchases of energy from renewable sources.
• Work to set multi-state, regional goals for reducing greenhouse gas emissions with surrounding states.

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Energy & Environment Minnesota's Great Legacy

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3 Sustainable Transportation: Increase Use of Minnesota-Grown and Produced Fuels & Increase Fuel Efficiency

Making wiser transportation choices has the potential to reduce our dependence on foreign oil, as well as reducing greenhouse gases. But our trends are not good. We are traveling more miles, consuming more petroleum with lower fuel efficiency, and producing greater greenhouse gas emissions.

Minnesotans have shown a willingness to use more environmentally-friendly alternatives. The ethanol industry has thrived in Minnesota and light rail ridership has exceeded all expectations. Ethanol is cleaner burning in our vehicles, reduces our dependence on foreign oil and adds to our local economy. We can significantly reduce greenhouse gases by using biomass fuels instead of fossil energy. Currently, locally produced ethanol amounts to less than 3% of total fuels used.

However, the current trends in ethanol production are not sustainable. If all the factories now seeking permits are built, ethanol soon will consume more than 40% of Minnesota's corn crop. This would under- mine our livestock industry, which relies on corn for their animal feed. In addition, these plants will use massive amounts of water - cutting off the opportunity for other forms of development in our communities.

We must find ways to use perennial crops as a substitute for corn in ethanol production. Perennial crops are more sustainable, do less damage to the environment, produce fewer greenhouse gases, and are not a ma- jor food source. They are also a more plenti- ful source for biofuels, the full use of which could supply as much as 30% of the nation's fuel needs.

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Energy & Environment Minnesota's Great Legacy

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Here is what Minnesota must do to reduce our dependence on imported energy and reduce greenhouse gas emissions:

A. Harness the Potential of Biomass Fuels

• Use our University of Minnesota research endowment (see our Education policy paper) to invest in targeted research in the Initiative for Renewable Energy and the Environment (IREE) to identify, within the next three years, commercially viable processes that use Minnesota grasses and perennials for bio-fuels.
• Establish the National Center for Biofuels Research at the U of M to conduct on-going applied research that establishes Minnesota as a national leader.
• Have Minnesota's first cellulose-based ethanol plant up and running within 8 years.

B. Adopt Nation-Leading Standards for Vehicle Emissions and Fuel Efficiency

The Clean Air Act (CAA) allows California to adopt fuel efficiency and emissions standards that are more stringent than federal standards. The CAA also exempts other states as long as they adopt standards identical to California's and are adopted two years before the start of the model year to which the standards apply. Minnesota should adopt and phase-in California standards for fuel efficiency and vehicle emissions.

Note: See our Transportation plan for more ways to reduce congestion and expand transit, both of which will help reduce total vehicle emissions.

THE BIG PAYOFF

Investments in our environment will result in a high pay-off for Minnesotans. We have the capacity, knowledge and desire to take the lead on preserving and improving our environmental legacy. Reducing our dependence on foreign oil and transforming our electrical generation will create a new, robust opportunity for local economic development in the biofuels and renewable energy industries. And, it will help to clean up our air and waters.

Renewing our natural environment will help to maintain the economic vitality of our resorts as well as our sport fishing, hunting and recreational industries. The added bonus is cleaner air and a contaminant-free environment throughout the state. We know what Minnesotans want. Team Minnesota provides the leadership to get us there.

Prepared and Paid for by Hutchinson & Reed for Minnesota PO Box 4364; John James for Attorney General, PO Box 40388;
Joel Spoonheim for Secretary of State, PO Box 40035; Lucy Gerold for Auditor, PO Box 40063, St. Paul, MN 55104