Minnesota Democrats want to create a climate “superfund” that charges large oil, gas and coal companies for costs associated with climate change.
The proposed law, introduced this week in the Minnesota Senate, would calculate damages caused by greenhouse gas emissions and send a bill to the world’s largest polluters for their share. Money obtained from those companies would pay for natural disaster recovery, infrastructure projects and public health efforts linked to excessive pollution.
“Climate change is not a distant threat — it is a daily reality. Our climate superfund bill is about accountability for this reality,” Rep. Athena Hollins, DFL-St. Paul, said at a Wednesday press conference.
Climate superfund laws are based on the federal Superfund program established in 1980 to clean up hazardous waste sites. That program collects money from companies that contribute to contaminated industrial sites and old trash dumps to help fund renovations. That program has been successful, Hollins said, and should be replicated toward broader environmental resiliency projects.
The bill would aim to charge large companies like ExxonMobil and Chevron for their pollution.
“We know that the Minnesotans who are most impacted by climate change are not the ones who profited,” Hollins said.
Climate change caused by the burning of fossil fuels is making Minnesota warmer and wetter, scientists say. The state is seeing more heavy rainfalls than ever before, resulting in increased flash flooding, putting a strain on local infrastructure.
Sen. Ann Johnson Stewart, DFL-Wayzata, a civil engineer by trade, authored the Senate bill. Increased flooding caused by the burning of fossil fuels is costing state and local taxpayers, she said, highlighting the 2024 collapse of the Rapidan Dam near Mankato.
Climate change has also contributed to invasive species, like Emerald Ash Borer, an invasive beetle that is decimating the state’s estimated one billion ash trees, creating massive costs for property owners and local governments, she said.
“We are suffering and every one of us is paying,” Johnson Stewart said.
Hollins said she hopes the bill will have bipartisan support. But Republican lawmakers voiced opposition Wednesday to the proposed law.
Rep. Harry Niska, R-Ramsey, said the bill would result in companies passing costs down to Minnesota consumers, driving up prices. He expressed concern that the new fund could be ripe for fraud.
“This is one of the worst bills I’ve seen in my time in the legislature. I’d be very surprised if it gets bipartisan support,” Niska said.
Similar laws in New York and Vermont are facing legal challenges, including from the U.S. Department of Justice, The New York Times reported. Fossil fuel companies and lobbying organizations have challenged the states’ ability to collect money from oil, gas and coal companies.
In Minnesota, local governments are constantly asking the state to help fund infrastructure projects, Johnson Stewart said. The state is dealing with simultaneous issues of aging infrastructure and infrastructure not developed for the reality of modern weather.
The proposed bill would order the Minnesota auditor’s office to create a system for determining which entities would be charged and how much, driven by scientific data. The auditor’s office would also audit payouts from the account once it’s established. The Minnesota Pollution Control Agency would administer the program.
“We want a really clear process and formula,” Hollins said.
Hollins expects to introduce a House of Representatives version of the bill this week.
