Minneapolis Climate Change Plan Would Raise Gas, Electric Fees

MINNEAPOLIS — Minneapolis Mayor Jacob Frey on Wednesday announced his plan to raise gas and electric utility fees to pay the city's climate goals over the next decade.

Under his proposal, the city would increase fees by an average cost of $8-12 per household per year, raising up to $10 million annually.

The city last raised its utility fees in 2017, resulting in a total increase of $3 million.

"One-third of Americans currently live under extreme heat advisories which means there is no time to waste when it comes to advancing our climate goals," Frey said in a statement.

"This must be an all-in effort to reach our renewable energy goals because lives depend on it. We must think of ourselves not only as the mayors, council members, and advocates of our residents today, but as the mayors, council members, and advocates of those that are not here yet. This is about our collective future, and about acting today to protect it."

The funding will be used for the city’s Climate Equity Plan, which sets a goal for Minneapolis to significantly reduce climate pollution by 2030 and become carbon neutral by 2050.

Find the goals laid out in the city's Climate Equity Plan below:

Homes and Apartments

• Insulate 30,000 homes and apartments by 2030.
• Focus on the Green Zones and switch heating and appliances from gas to electric.

Air

• Study and reduce outdoor and indoor air pollution to improve health outcomes.
• Focus on the Green Zones and neighborhoods/households experiencing cumulative air quality impacts.

Greenspace

• Expand and improve public and private green space for tree planting, food production, and natural habitat.
• Reduce local flooding and lower the air temperature in the summer.

Transportation

• 3 out of 5 trips are taken by foot, bike, or transit by 2030.
• 25% of all cars registered in the City are electric by 2030.
• Provide a variety of carbon-free transportation options that are safe, reliable and cost-effective.

Water

• Water systems equitably improve health and affordability for residents and are resilient to extreme weather.

Green Jobs

• Expand green job training and small business, with a focus on opportunities for BIPOCI residents.

Food and Waste

• 10% of foods purchased in Minneapolis are grown/produced in Minnesota or within 250 miles.
• Achieve a 0% growth rate in total waste from 2010 levels by 2030.
• Recycle and compost 80% of citywide waste by 2030.

Green Buildings

• Reduce 30% of GHG emissions from Commercial and Multifamily buildings by 2030.
• Reduce 20% of GHG emissions from industry by 2030.

Energy Systems

• Reduce residents with high energy burden by 50% by 2030.
• Reduce Citywide gas emissions by 30% by 2030.
• Achieve Citywide 100% Renewable Electricity by 2030.

City Operations

• Establish a franchise fee that promotes conservation and GHG emissions reduction. Use additional franchise fee revenue for accelerated equitable climate action.
• Achieve Net Zero GHG emissions for all City Operations by 2040.
• Create a Climate Legacy Initiative to fund implementation. Ensure Climate Investments and
• Programs are accountable to the community.
• Meet Federal Justice40 requirements and prioritize Environmental Justice Communities