New York Governor Kathy Hochul has signed a controversial law requiring fossil fuel companies to pay $75 billion for climate change damages, sparking debate and potential legal challenges.
At a Glance
- The Climate Change Superfund Act mandates major fossil fuel companies to pay for climate-related damages
- Companies must contribute approximately $3 billion annually for 25 years
- Funds will support climate resilience projects and infrastructure upgrades
- Critics argue the law is unworkable and will increase costs for consumers
- Legal challenges are anticipated as the state moves to implement the law
New York’s Climate Change Superfund Act
Governor Kathy Hochul of New York has signed into law the Climate Change Superfund Act, a groundbreaking piece of legislation that holds major fossil fuel companies accountable for their greenhouse gas emissions. The law requires oil, natural gas, and coal companies to contribute $75 billion to New York State over the next 24 years to address the impacts of climate change.
The legislation targets companies responsible for significant carbon emissions from 2000 to 2024, demanding they pay approximately $3 billion annually. The funds collected will support various climate resilience projects, including coastal protection, flood mitigation, and infrastructure upgrades to help communities better withstand extreme weather events.
Shifting Costs from Taxpayers to Polluters
Governor Hochul’s office stated the law’s primary goal is to shift the financial burden of climate adaptation from New York taxpayers to the fossil fuel companies responsible for pollution.
Do you believe her? Will she reduce New Yorkers’ taxes, then?
The Climate Superfund is modeled after a federal law that holds polluters accountable for toxic waste sites, applying a similar principle to greenhouse gas emissions and their impact on climate change.
“With nearly every record rainfall, heat wave, and coastal storm, New Yorkers are increasingly burdened with billions of dollars in health, safety, and environmental consequences due to polluters that have historically harmed our environment,” Governor Hochul said.
The law requires the state to establish regulations to identify liable parties and develop a fund allocation system before imposing penalties. Companies facing potential assessments include Saudi Aramco, Pemex, Lukoil, Exxon, Chevron, Shell, and BP, among others.
Industry Opposition and Potential Challenges
The petroleum industry views the law as a declaration of war against energy providers in New York. Over three dozen energy firms and business advocates urged Governor Hochul to veto the bill, citing policy and constitutional concerns. Critics argue the law is unworkable, likely to face legal challenges, and will increase costs for consumers.
“This type of legislation represents nothing more than a punitive new fee on American energy, and we are evaluating our options moving forward,” the American Petroleum Institute stated.
Ken Pokalsky, Senior Advisor to The Business Council of New York State, questioned the practicality of the law, asking, “What would you have them do? Not sell fuel in New York State?”
Support from Environmental Groups
Despite industry opposition, the law has garnered support from climate change activists, including the Sierra Club and Environmental Advocates NY. These groups view the legislation as a necessary step in holding fossil fuel companies accountable for their role in climate change and its impacts on New York communities.
“Establishing the Climate Superfund is the latest example of my administration taking action to hold polluters responsible for the damage done to our environment and requiring major investments in infrastructure and other projects critical to protecting our communities and economy,” Governor Hochul emphasized.
She’ll do anything to squeeze more money out of…anyone, really.
Expect lawsuits!
