MINNEAPOLIS — The City of Minneapolis will move ahead with new carbon fees after a contentious back and forth at City Hall concluded with the council overriding the mayor’s veto.
The new fees, which target carbon emissions from some city carbon dioxide emitters, will be implemented on July 1, 2025, according to the council.
Minneapolis already has a pollution fee system, known as the Pollution Control Annual Registration or PCAR. The fees go into the city's Green Cost Share program, helping pay the costs companies incur bringing down their emissions.
The current PCAR system covers emissions of other air pollutants, including volatile organic compounds, heavy particulates, and sulfur oxides, nitrous oxides, lead, and carbon monoxide. Companies are required to report their emissions levels to the Minnesota Pollution Control Agency, which, in turn, charges fees of $100 per ton.
The City Council voted Oct. 2 to add carbon dioxide to the list. The resolution seeks to impose a $452 per ton fee for carbon dioxide.
Minneapolis Mayor Jacob Frey questioned the legality of the new measure while issuing his veto on Wednesday. According to the city attorney, state law requires a fee study before the fees can be implemented.
“I am all on board for PCAR fees—but it’s time the Council stops playing games and follows the processes in place to enact lasting change,” said Mayor Jacob Frey, in a statement to KARE.
Before his veto was overridden, Frey had told KARE that if the measure were to move forward, companies hit with the fees would likely sue the city and win.
Council Member Robin Wonsley, who co-authored the measure, took to X (formerly Twitter) to respond to Frey's veto on Wednesday night.
Some councilmembers said they were addressing the Mayor's concerns by pushing back the implementation date, to make room for potential changes after the fee study is completed in May.