Minnesota Law Requires Public Utilities Commission to Use EPA’s Updated SC-GHG Values
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Application
To monetize greenhouse gas emissions from each method of electricity generation in Public Utilities Commission proceedings, including resource plan and certificate of need proceedings.
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Date
February 2023 -
Details
Minnesota amended its utilities law to require the state’s Public Utilities Commission to use the Environmental Protection Agency’s updated SC-GHG estimates for monetizing the greenhouse gas emissions associated with each method of electricity generation. Specifically, the legislature required the use of EPA’s valuations (then in draft form), using the 2% discount rate for the central estimate. The provision provides that “if, at any time,” EPA’s estimates “are exceeded by estimates released by the federal Interagency Working Group on the Social Cost of Greenhouse Gases or its successors, the [Public Utilities] commission shall adopt the working group estimates.” With this law, Minnesota became the first U.S. state to adopt EPA’s updated SC-GHG values.
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SCC Value(s)
The statute requires the use of EPA’s updated SC-GHG values. For emissions in the year 2030, for instance, those values are $140–$380 for the social cost of carbon, with a central estimate of $230 (all in 2020$).
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