First Substitute H.R. 3

Representative Michael E. Noel proposes the following substitute bill:

1 RESOLUTION ON ENERGY POLICY
2 2009 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Michael E. Noel
5
6 LONG TITLE
7 General Description:
8 This resolution of the House of Representatives urges the Governor to withdraw Utah
9 from the Western Climate Initiative.
10 Highlighted Provisions:
11 This resolution:
12 . urges Governor Huntsman to withdraw Utah from the Western Climate Initiative.
13 Special Clauses:
14 None
15
16 Be it resolved by the House of Representatives of the state of Utah:
17 WHEREAS, Utah's location and natural resources are an economic advantage and
18 catalyst for economic growth and opportunity for Utah's citizens through abundant and
19 affordable power, providing the seventh lowest electric rates in the nation;
20 WHEREAS, the nation's coal-fired power plants provide for half of the United States
21 electricity needs, and power generated from Utah's abundant and clean burning coal provides
22 for nearly 90% of the state's power needs;
23 WHEREAS, participation in the Western Climate Initiative (WCI) requires Utah,
24 through public policy, to reduce carbon dioxide emissions without legislative consultation or
25 public input;

26 WHEREAS, the Governor's Blue Ribbon Council on Climate Change (BRAC) lacked
27 balance and did not provide for full debate on global warming issues as they relate to Utah and
28 the economic costs associated with the BRAC policy options;
29 WHEREAS, there has been no economic analysis of the costs and benefits associated
30 with carbon reduction mandates, the economic impacts of participation in the WCI's regional
31 cap and trade program, and the consequential effect of the increased cost of doing business in
32 Utah;
33 WHEREAS, forcing business, industry, and food producers to reduce carbon emission
34 through government mandates and cap and trade policies will increase the cost of doing
35 business, push companies to do business in lower cost states or nations, and increase the costs
36 of electricity, fuel, and food;
37 WHEREAS, developed countries tend to emit lower levels of carbon dioxide per
38 million dollars of Gross Domestic Product (GDP) while developing countries emit more;
39 WHEREAS, there is concern from the scientific community that simply implementing
40 cap and trade domestically with 515 tons of carbon dioxide emissions per $1 million GDP will
41 push business production to other countries like China, which emits 2,222 tons of carbon per
42 $1 million GDP, ultimately resulting in a net increase in global emissions:
43 WHEREAS, millions of dollars have been invested in private, municipal, and
44 cooperative power generation, providing Utahns with dependable, reasonably-priced electricity;
45 WHEREAS, investors have a right to recapture their investments without the threat of
46 cap and trade or other government mandates undermining their economic viability;
47 WHEREAS, carbon capture and sequestration are new technologies, are not yet proven
48 or commercially demonstrated, and face legal and regulatory challenges;
49 WHEREAS, there is considerable scientific concern that expensive Kyoto-style carbon
50 reduction schemes will severely damage the American economy while having little effect on
51 climate change;
52 WHEREAS, experts, including the Congressional Budget Office, warn against cap and
53 trade policies, especially regional programs like the seven-member WCI;
54 WHEREAS, experts also point out that the costs of such programing will be borne by
55 consumers, placing a disproportionately high burden on poorer households; and
56 WHEREAS, no state or nation has enhanced economic opportunities for its citizens or

57 increased real GDP through cap and trade or other carbon reduction policies;
58 NOW, THEREFORE, BE IT RESOLVED, that the House of Representatives urges the
59 Governor to withdraw Utah from the Western Climate Initiative.
60 BE IT FURTHER RESOLVED that a copy of the resolution be sent to Governor
61 Huntsman, the Utah Department of Environmental Quality, the Utah Energy Office, and to the
62 members of Utah's Congressional Delegation.