H.J.R. 15 Enrolled

RESOLUTION REGARDING UNITED STATES
TRADE NEGOTIATIONS
2005 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Sheryl L. Allen
Senate Sponsor: David L. Thomas
Ralph Becker
Glenn A. Donnelson
Brent H. GoodfellowFred R. Hunsaker
Aaron TiltonDavid Ure
Stephen H. Urquhart
LONG TITLE
General Description:
This joint resolution of the Legislature urges the United States Trade Representative to
maintain the regulatory authority of states and to consult with representatives of state
and local governments and industry regarding trade issues.
Highlighted Provisions:
This resolution:
. urges the United States Trade Representative (USTR), negotiating with other
nations, to preserve the responsibility of states to maintain and develop their own
regulatory structures;
. urges the USTR to take further steps to enhance the level of consultation during
negotiations on any trade commitments under the World Trade Organization's
General Agreement on Trade in Services (GATS);
. commends the USTR staff for its willingness to learn about the potential impacts of
GATS rules on state and local regulation of the energy sector;
. urges the USTR to disclose, as appropriate, public requests from the United States
for GATS commitments from other nations;
. urges the USTR to give prior notice of the next United States offer or counter offer
for GATS commitments, so that state and local governments have time to discuss its

potential impact; and
. urges the USTR to participate in public discussions of trade policy and energy.
Special Clauses:
None

Be it resolved by the Legislature of the state of Utah:
WHEREAS, although the United States Constitution places the regulation of trade with
foreign countries within the prerogative of the Federal Government, the primary responsibility
for protecting public health, welfare, and safety is left to the states;
WHEREAS, the United States Congress has consistently recognized, respected, and
preserved the states' power to protect the health, welfare, and environments of their states and
their citizens in a variety of statutes, such as the Clean Air Act, Clean Water Act, and Safe
Drinking Water Act;
WHEREAS, it is vital that the Federal Government not agree to proposals in the current
negotiations on trade in services that might in any way preempt or undercut this reserved state
authority;
WHEREAS, proposed changes should not, in the name of promoting increased
international trade, accord insufficient regard for existing regulatory, tax, and subsidy policies,
and the social, economic, and environmental values those policies promote;
WHEREAS, statutes and regulations that the states and local governments have validly
adopted, that are plainly constitutional and within their province to adopt, and that reflect locally
appropriate responses to the needs of their citizens, should not be overridden by federal decisions
solely in the interests of increased trade;
WHEREAS, states are concerned about retaining a proper scope for state regulatory
authority in actual commitments in agreements with one or more United States' trading partners;
WHEREAS, it is crucial to maintain the principle that the United States may request, but
not require, states to alter their regulatory regimes in areas over which they hold constitutional
authority;

WHEREAS, if the United States makes broader offers later in the negotiations and the
legislation is "fast tracked," there will be little opportunity for states to have improper positions
reversed;
WHEREAS, it is critical that there be full and effective coordination and consultation
with the states before the United States Trade Representative (USTR) makes any binding
commitments;
WHEREAS, while the State Point of Contact system was meant to create a clearly
marked channel for two-way communications, the reality has not lived up to those intentions;
WHEREAS, a broader and deeper range of contacts with a variety of state entities,
particularly with those bearing regulatory and legislative authority, must be improved and
maintained over the next several years;
WHEREAS, it is important for state authorities to engage with the USTR in the
communications process and to respond to timely requests in any equally timely manner;
WHEREAS, as negotiations with other nations continue, they should also be conducted in
ways that will avoid litigation in world courts;
WHEREAS, the United States is the signatory to the World Trade Organization's General
Agreement on Trade in Services (GATS);
WHEREAS, the United States Trade Representative has published proposals that would
apply trade rules under GATS to regulation of electricity by state and local governments;
WHEREAS, these proposals would cover regulation of services related to transmission,
distribution, and access of energy traders to the grid and, if implemented, might conflict with
state energy policy and alter the balance of domestic authority between states and the Federal
Energy Regulatory Commission (FERC);
WHEREAS, concerns include the impact of market access rules on the structure of
Regional Transmission Organizations (RTO), state jurisdiction over utilities that are part of an
RTO, RTO contracts for reliability of the electricity grid, and potential roles for the RTO to
structure or facilitate wholesale trade and brokering services;
WHEREAS, another question is the impact national treatment rules may have on tax

incentives to produce wind energy, and market access rules that may impact renewable portfolio
standards that mandate minimum quotas for acquisition from renewable sources;
WHEREAS, another question is the impact that GATS rules on domestic regulation may
have on rate setting and the public interest standard for exercising regulatory authority by state
public utility commissions; and
WHEREAS, in early 2004, a working group of state and local officials consulted three
times with staff of the USTR who described the meetings as timely, productive, and
unprecedented:
NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah urges
the United States Trade Representative to conduct trade negotiations in a manner that will
preserve the responsibility of states to develop their own regulatory structures and that will avoid
litigation in world courts.
BE IT FURTHER RESOLVED that the Legislature of the state of Utah urges the USTR
to take further steps to enhance the level of consultation before negotiations commence on any
trade commitments under the World Trade Organization's General Agreement on Trade in
Services (GATS).
BE IT FURTHER RESOLVED that the Legislature of the state of Utah commends the
USTR staff for its willingness to consult with the working group and learn about the potential
impacts of GATS rules on state and local regulation of the energy sector.
BE IT FURTHER RESOLVED that the Legislature urges the USTR to disclose to the
public the United States' requests for GATS commitments from other nations.
BE IT FURTHER RESOLVED that the Legislature urges the USTR to give prior notice
of the next United States' offer or counter offer for GATS commitments so that state and local
governments have time to discuss its potential impact.
BE IT FURTHER RESOLVED that the Legislature urges the USTR to participate in
public discussions of trade policy and energy.
BE IT FURTHER RESOLVED that a copy of this resolution be sent to the United States
Senate Finance Committee, the House Ways and Means Committee, the Senate Subcommittee on

International Trade, the House Subcommittee on Trade, the Secretary of the Department of
Energy, the United States Trade Representative, the National Association of Attorneys General,
the National Conference of State Legislatures, the President of the United States, and Utah's
Congressional delegation.