Dive Brief:
- Minnesota utility regulators have deferred the question of whether to implement the U.S. Environmental Protection Agency's (EPA) social cost of carbon equation.
- The Public Utilities Commission (PUC) will, for now, continue to use a cost of carbon calculation developed in 1997.
- The PUC will also continue to study the federal assessment of carbon's impact.
Dive Insight:
Minnesota regulators unanimously voted to continue studying federal estimates of the cost of carbon after utilities complained about flaws in the EPA's calculations. Both the Minnesota Department of Commerce and Pollution Control Agency support adopting the federal estimate of carbon's impact, according to Midwest Energy News. The state continues to use estimates developed in 1997.
Regulators voted last year to consider updating the costs at the request of environmental groups.
Regulators in the state have used a cost of carbon which ranges from 42 cents to $4.37 per ton, according to Midwest Energy News. By contrast, the EPA cost is $37 per ton — and that model is expected to rise to $43. Should the state begin using the federal cost, some utilities could need to change their long-term plans, including how they integrate coal resources.
Minnesota also voted to reexamine the cost of nitrous oxide, particulate matter and sulfur oxide; an administrative hearing will be needed to consider their impact.