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Members of the House Republican Caucus issued a letter urging Minnesotan Senators Amy Klobuchar and Al Franken to oppose legislation.

The Honorable Amy Klobuchar
U.S. Senator
1200 Washington Ave. South
Suite 250
Minneapolis, MN 55415

The Honorable Al Franken
U.S. Senator
60 East Plato Blvd
Saint Paul, MN 55107

Dear U.S. Sens. Klobuchar and Franken:

We are writing to express our collective opposition to the cap-and-trade energy bills being
debated in the U.S. House and Senate. We share the common belief that this legislation will
have a devastating impact on our families, businesses and especially agriculture.

According to the Environmental Protection Agency’s analysis of a similar proposal, cap-andtrade
will cause energy prices to increase by about 40 percent. A U.S. Department of Treasury
study revealed in September that the estimated cost per household could be as much as $1,761
per year. Placing this kind of financial burden on the American family will not help our state
return to a period of sustained economic growth as the prices for energy, gasoline, diesel and
home heating oil rise.

Passing cap-and trade will also hurt the ability for small businesses to grow jobs and reduce the
national GDP. According to a National Federation of Independent Business (NFIB) survey of its
members, a small manufacturer that currently has $1.5 million in electricity, natural gas and
diesel costs will see those costs rise to more than $2 million annually. When asked how they
would absorb the increase in costs, businesses said because they are already operating with
minimum staff, most would be forced to raise prices.

Our agriculture industry would be especially hard hit if the U.S. Senate adopts cap-and-trade
legislation similar to that passed by the U.S. House. According to a report released by Missouri
Sen. Kit Bond and Texas Sen. Kay Bailey Hutchinson on October 21, America’s farmers and
ranchers would be hit with $550 million in higher fuel costs by 2020 and $1.65 billion in 2050 as
a direct result of climate change legislation. Minnesota’s rural economy—particularly the dairy
industry—cannot sustain this kind of hit. The USDA already rates dairy as one of the most
highly-leveraged agriculture industries. Forcing the burden of massive energy increases on their
operations would be crippling.

The U.S. Senate needs to seriously review the intentional and unintentional consequences of
passing a trade program similar to the one the U.S. House passed. Proponents claim this bill
won’t pinch wallets but they are ignoring the hard facts that this program could cost our country
2 million jobs by 2030 and reduce the national GDP by roughly $350 billon below the baseline
level. The reality is that Minnesotans will be forced to tighten their wallets.
Our country is suffering from the worst economic recession since the Great Depression. It is
financially irresponsible to consider legislation that would impose the largest tax hike in
American history when so many people and businesses are already struggling to make ends
meet. Our country simply cannot afford to take this gamble.

We hope you take our concerns into consideration as you represent all of Minnesota in the U.S.
Senate. We strongly urge you to oppose cap-and-trade legislation.

Regards,

Rep. Kurt Zellers Rep. Michael Beard Rep. Randy Demmer
House District 32B House District 35A House District 29A
Rep. Bob Dettmer Rep. Steve Drazkowski Rep. Rob Eastlund
House District 52A House District 28B House District 17A
Rep. Tom Emmer Rep. Pat Garofalo Rep. Steve Gottwalt
House District 19B House District 36B House District 15A
Rep. Bob Gunther Rep. Rod Hamilton Rep. Joe Hoppe
House District 24A House District 22B House District 34B
Rep. Tim Kelly Rep. Tara Mack Rep. Mark Murdock
House District 28A House District 37A House District 10B
Rep. Tim Sanders Rep. Peggy Scott Rep. Marty Seifert
House District 51A House District 49A House District 21A
Rep. Ron Shimanski Rep. Steve Smith Rep. Dean Urdahl
House District 18A House District 33A House District 18B