Tuesday, December 29, 2009

ND may sue Minnesota over carbon tax

North Dakota’s attorney general said he expects the state to sue Minnesota over a plan there to tax carbon created by electrical generation.

After discussing the issue with the state Industrial Commission in a closed session this month, Attorney General Wayne Stenehjem said “It is very likely that we will be suing the state of Minnesota.”

At issue is a measure by Minnesota’s Public Utilities Commission to add a fee of between $4 and $34 per ton of carbon dioxide to the cost of electrical generation starting in 2012. The majority of electricity in North Dakota is generated by coal-fired power plants, which emit a large amount of carbon relative to other fuels sources. North Dakota officials argue that the move would place an unfair tax on electricity from the state and discourage its use by Minnesota utilities.

Stenehjem said possible legal action would relate to constitutional protections against restrictions on commerce between states.

From the Bismarck Tribune. Let's hope this gets tossed out of court...

No comments: