Minnesota Democrats today introduced Senate File 4126, a bill that would impose a punitive fee on oil, gas, and coal businesses, with proceeds directed into a “greenhouse gas pollution account” for climate change adaptation projects.
“Minnesotans are already struggling with rising costs of energy due to the actions of Democrats, and the last thing they need is another complicated government program that will just raise the cost of gas and utilities,” Senate Republican Leader Mark Johnson (East Grand Forks) said. "We need more policies that embrace reliable, affordable, and always-available energy to keep Minnesota’s economy moving and families safe during our harsh winters, and this scheme fails to put the needs of Minnesotans first.”
The proposal would require 40% of disbursements to benefit disadvantaged communities. The fund would also cover new Pollution Control Agency administrative costs.
"This is a ‘Pay Taxes to the Government to fix the Weather’ promise which they cannot even keep,” said Senator Andrew Mathews (Milaca), Lead Republican on the Energy Committee. “This bill flies in the face of affordability, has strong constitutional interstate commerce issues, and will raise costs on the very low- and middle-income people they claim to protect—because taxing our energy providers will only make our costs even higher.”
Energy producers are expected to challenge the fee in court if it advances, leading to prolonged legal battles and millions in defense costs that would likely be passed on to consumers in the form of even higher energy prices. Vermont and New York are the only two states that have enacted a “Climate Superfund.” New York will require fossil fuel companies to pay a total of $75 billion. The amount of Vermont’s fund is yet to be determined. It’s unclear how much Minnesota’s fund would be.