In 2019, Minnesota Gov. Tim Walz bypassed his own state legislature to adopt California's vehicle emissions standards, setting off contentious legal and economic debates in the state.
Walz's decision led to the implementation of the "clean cars" rule in Minnesota, which has been met with opposition and legal challenges, particularly from the Minnesota Auto Dealers Association and GOP lawmakers, as the Washington Free Beacon reports.
On Sept. 25, 2019, Walz announced his plan to adopt California's electric vehicle (EV) regulations. The governor directed the Minnesota Pollution Control Agency to draft a "clean cars" rule, modeled after California's Advanced Clean Cars program, which would impose stricter emissions standards and mandate increased delivery of electric vehicles to Minnesota dealerships starting in 2024.
Walz's decision to bypass the Minnesota Legislature utilized a seldom-invoked provision from past legislation. Consequently, the "clean cars" rule was adopted in July 2021, making Minnesota the 14th state to follow California's lead on this issue. Under federal law, California can pursue stricter emissions standards with a waiver, and Minnesota aimed to align with these regulations.
However, this move faced significant backlash. GOP lawmakers and the Minnesota Auto Dealers Association strongly opposed the new mandate. Scott Lambert, President of the Minnesota Auto Dealers Association, argued that Walz had unlawfully ceded Minnesota's regulatory authority to California.
"Governor Walz unilaterally imposed California emission standards on Minnesota via administrative rule," Lambert said. He also expressed skepticism about the governor's understanding of the rule's implications, suggesting that Walz had been misled by his advisors.
The economic ramifications of this decision have been a focal point of opposition. Major automakers like General Motors, Ford, and Volkswagen announced plans to scale back EV production due to economic challenges, a trend that critics say will be exacerbated by the new mandate. Between January and March 2024, electric vehicles accounted for only 6.5% of new car sales in Minnesota, trailing behind states without similar mandates like Utah and Florida.
According to a March 2024 study by Boston Consulting Group, automakers are losing approximately $6,000 on every $50,000 electric vehicle sold. The average transaction price for an electric vehicle stands at $56,371, nearly $8,000 more than that of a gasoline-powered vehicle. The Minnesota Auto Dealers Association attempted to overturn the rule through legal channels but was unsuccessful. The U.S. Supreme Court declined to hear the case, solidifying the rule's standing.
Prominent voices on both sides of the political spectrum have voiced their concerns. Isaac Orr, a Minnesota-based energy expert, criticized Walz's penchant for adopting California-style energy policies. "Governor Walz has never seen a California energy policy that he did not try to implement in the state of Minnesota," Orr said.
Minnesota House Minority Leader Lisa Demuth also weighed in, saying that Walz had unilaterally imposed "expensive California style vehicle mandates" and criticized him for partnering with Vice President Kamala Harris, suggesting that the administration aims to eliminate gas-powered vehicles entirely.
Dean Urdahl, a Republican state representative, argued that the legislature would not have passed such a mandate. "I don't think it would have passed in the legislature, basically adopting the California automobile standards. A one-size-fits-all approach doesn't work for Minnesota," he said.
Despite the legal and political battles, the "clean cars" rule is set to take effect for the 2025 model year. The regulation is expected to increase electric vehicle sales in Minnesota by over 200%, a substantial shift for the state's auto market.
Walz has remained steadfast in his position, emphasizing Minnesota's leadership role in combating climate change. "If Washington won't lead on climate, Minnesota will," he declared back in 2019, but whether his fellow Minnesotans will stand for that continued approach, only time will tell.
