Written by Michael Walker, Ward 13 resident, Unidos MN

In July, we have seen the two hottest days that humans have recorded. Ever. Scientists state this is “a consequence of the increase in greenhouse gasses.”

Last year the City of Minneapolis passed a 10-year Climate and Equity Plan, and negotiated $10 million per year in funding with unanimous support. The mayor and City Council should be commended for recognizing the urgent need for us to weatherize and decarbonize our homes and buildings, beginning with residents who can least afford to pay for these necessary building improvements. This includes renters, who have no say in how or when the building they live in will be upgraded. While this was a great first step, we know that in order to meet our climate goals, more funding is needed to transition all of our buildings now. The majority of greenhouse gas pollution in Minneapolis, 71%, comes from buildings. In order to meet our climate goals must insulate/weatherize and electrify all of our buildings by 2030 so that our power can come from the wind, sun and earth (geothermal) instead of harmful fossil fuels, like natural gas.

Currently, Mayor Jacob Frey and City staff are negotiating behind closed doors with Xcel and CenterPoint on a new franchise fee agreement. The agreement will set the conditions for how clean energy funding is raised, and whether or not big polluters must contribute to the clean energy transition. This is a crucial moment to make sure that policies and funding are put in place to support the clean energy transition. [Editor's note: The City has a webpage with 2023 franchise fee agreement documents]

I was troubled to read a recent study by University of Minnesota researchers, Bhavin Pradhan and Gabriel Chan, showing that “living in poorer neighborhoods with a greater concentration of people of color is associated with a statistically and practically significant difference in the likelihood of disconnection from service due to non-payment and the experience of extended power outages” for people getting their electricity from Xcel Energy in Minneapolis. There were also recent reports that CenterPoint, which provides electricity in Houston, Texas, was slow to restore power in more racially diverse communities after Hurricane Beryl.

The fact that companies with these track records are the sole providers of energy in Minneapolis is concerning. I was heartened to see a recent report from the Just Transition Fund Coalition, calling for four key provisions in the new franchise agreements that address these concerns:

• Shorter contract terms (five years instead of 10) to allow more frequent reassessment
• Clear, enforceable annual performance metrics for utilities with consequences for failure to meet city goals
• Franchise fees that are set up to make the biggest polluters pay their fair share, based on electricity carbon intensity and fossil gas volume to incentivize clean energy. Prior to last year’s Legacy agreement, the largest polluters paid a lower rate than residential homeowners.
• Commitment to transparency about the cost of our local energy system

This report provides the Frey administration with a roadmap for an equitable clean energy transition. With the current franchise agreements set to expire at the end of this year, these agreements are pivotal in determining if the City will meet our climate goals. Minneapolis has a unique chance to implement an innovative, equity-focused approach to climate funding that could serve as a model for the nation!

With negotiations wrapping up in the coming days, we must act now to ensure we have the best agreements possible, taking the steps necessary to make the clean energy transition as quickly as possible. I invite you to join me in taking action, by calling 612-673-2100 and/or writing to the mayor to let him know you care about the health of our community and planet, and that he should incorporate the four key provisions outlined above in any franchise agreement. Click here to send a postcard.