Calif. retreats on climate policy, but not Minn.
A tale of two headlines. From Politico:
Democrats retreat on climate: ‘It’s one of the more disappointing turnabouts’
A changing political climate has California Democrats recalibrating on climate policies.
From the Star Tribune:
Supporters of climate action say work will continue in Minnesota despite federal reversal.
Somehow, California, of all places, has taken the more pragmatic route on this issue. Back to Politico:
In the past two weeks alone, California Democrats have retrenched on environmental reviews for construction projects, a cap on oil industry profits and clean fuel mandates. Elected officials are warning that ambitious laws and mandates are driving up the state’s onerous cost of living, echoing longstanding Republican arguments and frustrating some allies who say Democrats are capitulating to political pressure.
But in Minnesota:
Minnesotans who favor climate action are mourning the loss of hundreds of billions of dollars in federal tax incentives meant to aid the fight against global warming.
They’re also set on plowing forward with the state’s climate agenda.
Reality be damned.
The [One Big Beautiful Bill] quickly phases out the tax credits for climate and clean energy projects under the 2022 Inflation Reduction Act, including some incentives intended to last for 10 years. For solar, wind and other renewable energy developers, they must begin construction on their projects within a year to qualify for the credits.
“It’s just devastating,” said Minnesota Rep. Jamie Long, a Democrat who wrote the state’s law mandating carbon-free power from utilities.
But Minnesota Democrats are undeterred, From the Walz administration:
The repeal of the tax credits will slow but not stop Minnesota from building solar and wind farms.
Democrats in California have seen the wall, and read the handwriting, Politico reports:
It’s a reversal that is dismaying to climate activists, an outspoken part of the Democratic Party’s base. And it’s a trade-off — freighted with significant and potentially long-lasting policy implications — that party leaders are making in an effort to regain political strength.
And not just in California:
Other parts of the country are pulling back on climate policies in the name of affordability, too. New York Gov. Kathy Hochul is delaying plans for a carbon-trading system and slowing enforcement of the state’s rules for clean cars and trucks, which follow California’s. Maryland Gov. Wes Moore is similarly pausing on carbon trading. And in Congress, some 36 Democrats — including two from California — signed on to the effort to overturn California’s vehicle rules.
As economist Milton Friedman famously said:
I do not believe that the solution to our problem is simply to elect the right people. The important thing is to establish a political climate of opinion which will make it politically profitable for the wrong people to do the right thing.
I’m guessing that Prof. Friedman never made it up here to Minnesota.