Portland, Maine (Platts)--25Jan2008

A Minnesota climate change task force is recommending the state join
a regional cap-and-trade carbon program and adopt strict emission limits that
would essentially bar any new coal-fired power plants from being built in the
state.

The Minnesota Climate Change Advisory Group voted Thursday to allow two
coal-fired plants that are under development -- the 600-MW Big Stone II
project and the 603-MW integrated gasification combined-cycle Mesaba project
-- to be exempt from the recommendation.

The generation performance standard would prevent utilities from making a
long-term financial commitment to baseload generation plants with CO2
emissions above 1,100 pounds of CO2/MWh, a draft report from the group said.

A final report will be given to Minnesota Governor Tim Pawlenty, a
Republican who supports Minnesota's goal of cutting the state's greenhouse gas
emissions 80% below 2005 levels by 2050. A version of the report will also be
given to the Minnesota Legislature February 1.

The group also endorsed Pawlenty's goal of joining other Midwestern
states and the Canadian province of Manitoba to create a regional
cap-and-trade program.

The recommendation gives "additional momentum" to the regional program,
said Barbara Freese, an advisory group member and a Union of Concerned
Scientists consultant.

The group also recommended Minnesota explore building a new nuclear plant
by around 2025 and said the state should consider supporting demonstration
projects for carbon capture and sequestration.