Gov. John Hoeven told lawmakers Tuesday on Capitol Hill that Congress should scrap the so-called "cap-and-trade" energy policy for one that would equally bolster traditional and renewable fuel sources.

U.S. senators heard from four governors, including Hoeven, three mayors and an Arkansas state representative about the potential impact of energy and climate change legislation before Congress.

Hoeven, the only Republican to address the Senate Standing Committee on Environment and Public Works, told lawmakers the cap-and-trade policy that recently passed the U.S. House would have dire financial consequences on North Dakota's lignite coal-reliant consumers.

The cap-and-trade policy would set limitations on carbon dioxide emissions and establish a market for certain emitters to sell or buy carbon dioxide allowances.

Sen. James Inhofe, R-Okla., a leading opponent to the cap-and-trade provision in the House energy bill, invited Hoeven to address the Senate committee.

"In North Dakota our approach is about developing all of our energy resources, both traditional and renewable," Hoeven said.

Hoeven said North Dakota power companies are implementing "clean coal" technologies, such as a Dakota Gasification Company plant in Beulah that converts lignite coal into a liquid synthetic natural gas.

A national cap-and-trade policy could put an end to those advancements in technology because they would be too costly, he said.

"Each and every source of energy has some drawbacks, traditional and renewable," Hoeven said. "We have to be careful in energy policy about picking winners and losers, and instead incentivize states, this country, to develop all of our energy resources and do so in environmentally sound ways."

Sen. John Barrasso, R-Wyo., noted some Democratic opposition to the cap-and-trade policy, citing an op-ed against the policy written by North Dakota Sen. Byron Dorgan that ran in The Bismarck Tribune on Sunday. Montana Gov. Brian Schweitzer also told HBO's Bill Maher in a Friday interview that he does not support the policy.

Democratic lawmakers had many questions for Hoeven, including Sen. Bernie Sanders, I-Vt., who asked Hoeven if he agrees with scientists who have concluded that the consequences of global warming could be dire for future generations.

Hoeven said there is evidence of global warming, but said there are still more questions about the cause of the phenomenon and went on to advocate for a comprehensive federal policy. Sanders stopped him mid-sentence.

"Actually, that wasn't my question, my question was a pretty simple one," Sanders said. "Some of the leading scientists in the world tell us that global warming is a huge crisis for this world. Now it will only get worse. Do you agree with that assessment?"

"I agree we need to address it," Hoeven said. "I think there are different opinions as to what causes it."

In her opening statements, Sen. Amy Klobuchar, D-Minn., noted efforts in North Dakota to invest in renewable energy sources, such as wind turbines.

"We will be engaging in this century's version of the space race, it will be the energy race," Klobuchar said. "This time the finish line will be wind turbine manufacturing in North Dakota."

She also noted the Senate is likely to change the energy policy approved by the House in June while insisting Congress approve a policy this year to ensure the United States remains competitive in the growing global renewable energy market.

"I agree we need to make some changes for the middle class and a more aggressive renewable energy standard, but I agree we cannot sit on our hands and do nothing because other countries will fill that void," Klobuchar said.

The Democratic governors from Washington, Colorado and New Jersey also testified before the committee.

Gov. Bill Ritter of Colorado said he wants a national energy and climate change policy, but not explicitly the legislation that recently passed the U.S. House, which Rep. Earl Pomeroy, D-N.D., voted against.

Klobuchar also asked Hoeven about his stance on increasing the amount of ethanol fuel blended with gasoline, a question currently being mulled by the Environmental Protection Agency.

"You should do it," Hoeven said.

"Thank you for that North Dakota directness," Klobuchar said.

(Reach reporter Brian Duggan at 223-8482 or brian.duggan@;bismarcktribune.com.)