According to a report in The Bismarck Tribune, the state of North Dakota appears prepared to sue Minnesota over a carbon tax that is set to begin in Minnesota in 2012. North Dakota Attorney General Wayne Stenehjem said, “It is very likely that we will be suing the state of Minnesota,” as Minnesota’s PUC is prepared to add a fee of anywhere between $4 and $34 per ton of CO2 to the “cost of electrical generation starting in 2012.” State leaders from North Dakota will argue that this is an illegal attempt by Minnesota authorities to regulate utilities outside of the state. North Dakota generates most of its power from coal-fired power plants and views the tax as an attempt to "discourage its use by Minnesota utilities." A key issue is likely to be whether the Minnesota's carbon tax will treat energy generation within the state and outside of the state equally.

http://www.bismarcktribune.com/news/local/article_a6fafd5a-f409-11de-bb24-001cc4c03286.html