Minnesota has fallen far short of emission reductions established in 2007 by Republican Gov. Tim Pawlenty, but the chance for bipartisan agreement on a course correction appears slim, according to legislative leaders on both sides of the aisle.

Considered historic at the time, the bipartisan “Next Generation Energy Act” requires the state to cut overall greenhouse emissions by 30% by 2025 and 80% by 2050. But emissions have declined by just 8% from 2005 levels, the Minnesota Pollution Control Agency reported last month.

While the report applauded the state government’s move to more electric vehicles and the energy industry’s move away from coal-fired power plants in favor of carbon-free wind and solar, MPCA officials also said the state has made little progress in the areas of transportation and agriculture.

On Jan. 21, Gov. Tim Walz announced a four-part plan by the Democratic-Farmer-Labor party to accelerate the state’s efforts, including a requirement that the state’s electric utilities use only carbon-free resources by 2040.

It would also require that utilities prioritize energy efficiency and clean energy resources over fossil fuels when proposing to add new generation, allowing new fossil fuel resources only if necessary for reliability and affordability. Walz would also raise energy efficiency standards and set a state goal of cutting greenhouse gas emissions from existing buildings in half by 2035. “The time to fight climate change is now,” Walz said.

But State Senate Majority Leader Paul Gazelka (R) said his current session priorities are substantially scaled back because of the coronavirus pandemic and an anticipated $1.3 billion budget shortfall.

“We knew that we were going to be in trouble [financially] this year,” Gazelka said in a January capitol report regarding session priorities. “And we’re not going to [balance the budget] by raising taxes.

He added that with limited floor action because of COVID protocols, he’s encouraged legislators in both the Senate and the House to “think about doing less.” His priorities this session focus on three key items: the budget, redistricting and dealing with pandemic issues.

“We’ve got to get our businesses open,” Gazelka said. “The rest can wait until next year.”

Despite the prospects of a divided legislature, DFL leaders have already pitched proposals with the hope that the Republican-controlled Senate might consider renewed goals for cutting emissions.

“This is an issue of our times, and it’s urgent that we deal with it,” Senate Minority Leader Susan Kent (DFL) said. While she said the state has made some headway on reducing emissions, transportation remains the number one concern, and a faster move to electric vehicles is a key to addressing it.

But Republicans prefer to stick with the targets set in the 2007 bill. The GOP’s relationship with Walz has been heading south for several months. The two sides have argued often and publicly about the governor’s use of emergency powers because of the pandemic. There have been several legislative attempts to curtail Walz’s emergency powers, but they have all been stopped by the DFL-controlled House of Representatives.

Gazelka said his party believes it is long past time to allow the Senate and the House to address the state’s economic issues, and that decisions “should not be given to one person for over a year.”

Republicans have also criticized the state’s vaccination rollout as being confusing and slow, and there has been a growing rural-urban split over how to fund economic recovery efforts for businesses impacted and destroyed in Minneapolis during the days following the death of George Floyd on May 25.

Despite a slim Senate margin, Republicans believe they have somewhat of a mandate judging from the November elections which saw their party gain five seats in the House, primarily in rural Minnesota. While the DFL still holds a 70-64 edge in the House, Republicans hold a 34-31-2 advantage in the Senate.

Two former DFL members, Rep. David Tomassoni (I) and former House Majority Leader, Rep. Tom Bakk (I), have left the party and plan to caucus with Republicans.

A bill sponsored by Rep. Jamie Long (DFL) that would set benchmarks for meeting Walz’s 2040 goal was the first clean energy measure to get a hearing in the new legislative session. And on Jan. 29, Long’s Capital Investment Committee held a joint hearing on Long’s bill with the Climate and Energy Committee chaired by fellow Minneapolis Rep. Fue Lee (DFL).

“As one of the fastest warming states in the nation, Minnesota needs strong, resilient infrastructure to withstand the impacts of climate change,” Long said in a press release. “Investing in sustainable infrastructure will create new jobs and help our communities adapt and thrive as the climate continues changing.”

Sen. Nick Frentz (DFL), who is sponsoring Long’s proposal in the Senate, isn’t quite as optimistic at winning support for the measure in the GOP-controlled upper house.

Sen. Dave Senjem (R), chair of the Energy and Utilities Finance and Policy Committee, plans to reintroduce the “Clean Energy First” proposal he authored in 2020. The bill would direct the Minnesota Public Utilities Commission to prioritize use of sources such as nuclear, solar, wind, hydropower, carbon sequestration and municipal solid waste in utility requests for additional generation. The PUC would be required to determine if the energy is adequately reliable and affordable for ratepayers.

The state’s two largest utilities, Xcel Energy and Allete’s Duluth-based Minnesota Power, have pledged to produce energy without carbon emissions by 2050, focusing on wind and solar options. Minnesota Power also plans to eliminate coal-powered generation by 2035.

In December, Minnesota Power announced it had become the first state utility to provide 50% renewable energy in its system, which serves 145,000 residential and commercial customers across northern Minnesota. Land O’ Lakes, through its sustainability affiliate Truterra, launched a carbon exchange program Feb. 4 to pay Minnesota farmers for increasing carbon storage in the soil. Companies that want to reduce their GHG emissions could buy credits to help offset the impact of climate change, according to Land O’ Lakes, a farmer-owned cooperative.

Microsoft became the program’s first customer, announcing it will pay $20/ton for carbon sequestered in the soil by sustainable farming practices.