The Eden Prairie News caught up with Third District U.S. Rep. Erik Paulsen as he was in town during the Fourth of July break. Paulsen, an Eden Prairie native who has just finished up his first six months in office, has seen some landmark legislation cross through the House of Representatives – some of which he has supported, some of which has drawn his concern.

Most recently, the House narrowly passed the American Clean Energy and Security Act of 2009, often referred to as cap-and-trade legislation, which sets out to curb carbon emissions, while also setting renewable energy standards for utilities.

“I just think it was a wrong approach,” said Paulsen.

The legislation, which must still work its way through the Senate, sets up a system to cap carbon outflow while allowing industry to trade or bank on permits that allow for carbon emissions. According to Paulsen, such legislation could increase overall energy costs.
“If you’re going to have an energy policy or an energy plan you should focus on securing our energy future and making yourself less dependent on foreign oil.”

Paulsen said the legislation is so controversial “because it’s seen as another anchor on the economy right now.”

Instead of a cap and trade system, Paulsen would have preferred a focus on encouraging renewable energy, specifically nuclear energy.
“If we’re going to be serious about securing our energy future, we need to focus on having nuclear energy be a part of that,” he said.
Paulsen puts much of his focus on small businesses. To kick-start the economy, “helping small business is first and foremost,” he said.

To that end, Paulsen was the one Republican from Minnesota who voted for the Credit Card Accountability Responsibility and Disclosure Act of 2009, legislation that regulates how credit card companies can raise rates and notify consumers. Along with protecting consumers, the legislation protects small businesses, noted Paulsen. The National Federation of Independent Business, the nation’s No. 1 small business advocate was a supporter of the bill, he added.

“I sided with small business on that one,” Paulsen said.

The bulk of the work over the next few months will be health-care reform legislation.

Paulsen said he’s hoping what emerges is health-care reform that focuses on “high quality and low cost.”

If doctors and hospitals are reimbursed based on the quality of their procedures instead of the number of procedures, “I think we will see cost savings,” he said.

Additionally, Paulsen is sponsoring legislation that will allow small businesses to pool together to spread risk on health insurance.

“There is bipartisan support for that,” he said.

There will be less support for the more controversial aspects that emerge from the public plan, one that might be modeled after Medicare, according to Paulsen.

“I think that’s a wrong-headed approach.”

To build a new health-care reform model using Medicare would be a costly mistake, he added.

“We just have to focus on lowering costs,” he said.

Much of Paulsen’s time will also be spent on the Financial Service Committee, where he’ll be sorting through regulatory reforms.
“I want to make sure that we’re able to protect consumers without adding new layers of bureaucracy that will prevent innovation in the marketplace,” he said.

Additionally, Paulsen is working with the Special Inspector General (SIG) on the oversight of federal spending through the Troubled Asset Relief Program (TARP). Through legislation that Paulsen co-sponsored, a system must be set up track all the funds distributed through TARP.

Much of the feedback he’s received from his tele-town hall meetings relates to a lack of confidence in spending from Washington.

“The confidence isn’t there, it’s a very consistent theme,” he said.