STATE OF MINNESOTA Office of Governor Mark Dayton 116 Veterans Service Building + 20 West 12th Street» Saint Paul, MN’ September 21, 2015 Representative Pat Garofalo 485 State Office Building 100 Rev. Dr. Martin Luthe: King Jr. Boulevard Saint Paul, MN $5155 Dear Representative Garofalo: ‘Thank you for your letter dated September 14 letter regarding the U.S. Environmental Protection Agency's Clean Power Plan. Like you, lam always concemed about the impact of federal laws and rules on our state’s economy and job growth. This letter addresses my ‘Administration’s approach to the issues you outlined ‘When the EPA relesse its draft rule in 2014, I initially shared your frustrtion that Minnesotas target did not acknowledge all of the work we have already done to reduce our ‘emissions. When the final rale was released, I was pleased to see that the EPA adjusted ‘Minnesota's target to betterreflect that work. Further, the final rule generously awards credits for reductions made at the tart of the compliance period, between 2020-2022, States like Minnesota, who already have the necessary policies and infastrueture in place, are well- positioned to take advantage of these credits allowing us to more easly meet our target. Finally, | was encouraged to hear that our sate’s largest investor-owned utility, Xeel Energy, recently testified at the Public Utilities Commission tht the final rule did a beter job of addressing the issue of credit for early action, and thatthe company believes that Minnesota can achieve its target. Like you, Iam also concemed about federal laws and rules that seem to provide no environmental or human health benefit to Minnesotans or the rest ofthe country. However, the EPA has outlined several important benefits fio the Clea Power Plan. For example, the plan will result in 225 percent reduction ofthe pollutants that contribute to smog and soot nationwide. These benefits translate into savings in ou health care costs, which ae projected to total between $7.3 billion-$8.8 billion in 2030, Commissioner Stine has confirmed to me that his ageney is stil inthe early stages of Understanding the EPA’s final Clean Power Plan rule, and has not even begun the process of | determining a pathway to Minnesota's compliance. Thus, no coal plants have been identified or e (65) 201-340 or (600) 657-9717 Fax: (651) 797-1850, MN Relay (00) 6 tes ups gov governor An Equal Opportunity Employerproposed for shuttering. Since there has yet to be any substantive discussion among parties as to ‘What a Minnesota plan might look lke, and in an attempt to prevent the spread of serious ‘misinformation, have directed the MPCA to be fully ransparent in any proposed recommendations with all stakeholders, You and your legislative colleagues do not need to wait ‘until March 15, 2016 tobe informed of the status ofthe state's plan, orto review the proposed recommendations. Those tems are available to you, and any other intrested paty, at your request. ‘While my administration is commited to protecting and improving the environment, ‘including taking substantive measures to address climate change, I am determined that we do so ina costeffective manner that increases jobs and provides for economie opportunities across ‘Minnesota. To that end, Commissioner Stine has proposed, and I have approved, a process that includes extensive stakeholder input, giving all Minnesotans who will be impacted an ‘opportunity to share their ideas and concerns, 1am particularly interested inthe publi input from workers employed at our state's coal plants, and th residents oftheir host communities. At your hearing in Becker on Monday, September 21, MPCA staffwil outline the many opportunities for public engagement. Theit testimony will include my personal invitation to hear from ther, and I will personally review their comments, concems and suggestions. ook forward to our continued work to guarantee Minnesota's clean energy future, and ‘hope that you'll join me informing a plan that is both innovative and practical, and that reflects ‘our track record of clean energy leadership. Sincerely, ‘Mark Dasfon Governor