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Peterson: Concerns over energy act allayed
Published 12:00pm Friday, June 26, 2009House Agriculture Committee Chairman Collin Peterson said Thursday alterations made to the American Clean Energy and Security Act of 2009 have calmed his concerns.
The goal, Peterson said, is to remain true to the efforts of the United States in reducing greenhouse gas emissions, while protecting Minnesota’s rural farmers, ranchers and forest land owners.
In order to do so, an offset credit program was included in the act, allowing farmers to purchase carbon offsets through the market.
The market system, however, will not be included in over the counter market trading, according to Peterson.
“There will be no manipulation of the Wall Street guys,” Peterson said in a press conference Thursday.
Offset credits are defined in the bill as “a tradable compliance instrument that represents the reduction, avoidance or sequestration of 1 ton of carbon dioxide equivalent.” It also goes on to state that all offset market purchases must prove to bring about permanent reductions in atmospheric greenhouse gas emissions.
Also included in the negotiations is an alteration to Indirect Land Use, which, according to Peterson, is charging Minnesota companies to pay costs associated with other countries.
“That is a huge deal for our ethanol people that are in trouble right now like Otter Tail (Ag Enterprises) and some of the other guys,” Peterson said. “That’s critical in keeping them in business.”
Though Peterson is, at this point, content with the negotiated wording of the act, he is holding back celebrations until the bill makes its way through the Senate.
“If it comes back in any way that is unacceptable to me, I will not support the bill in its final passage,” Peterson said.
