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First Substitute H.R. 3

Representative Michael E. Noel proposes the following substitute bill:




Chief Sponsor: Michael E. Noel

             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
             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.

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