New York Governor Kathy Hochul approved legislation last week that will require oil, gas, and coal companies to pay $75 billion over the next 24 years to address the state’s carbon emissions and fund climate-related initiatives. The new law, known as the New York Climate Superfund, aims to force companies to pay for their carbon emissions in an effort to combat climate change. However, critics warn the law may ultimately burden consumers with higher costs.
The Climate Superfund law mirrors a federal law that compels polluters to take responsibility for abandoned toxic waste sites. Revenue collected under the law will be allocated to projects such as coastal protection and flood mitigation, according to a report by the New York Post.
In her approval message, Governor Hochul emphasized the need for the legislation, stating that, “This bill would allow the state to recoup $75 billion from major polluters.” Hochul also claimed that energy companies are responsible for one billion metric tons of greenhouse gas emissions in New York.
“For too long New Yorkers have borne the costs of the climate crisis, which is impacting every part of the state,” Hochul said.
An analysis by state lawmakers, reviewed by the New York Post, estimated that both US-based and foreign energy companies will will collectively pay around $3 billion annually for two and a half decades. These compnaies include large American energy companies like Exxon and Chevron.
Despite the governor’s endorsement, the legislation has drawn criticism from energy firms, business advocates, and legal experts. Over three dozen energy companies and industry groups sent a letter to Hochul urging her to veto the bill. The letter described the legislation as “bad public policy” that “raises significant implementation questions and constitutional concerns. Moreover, its $75 billion price tag will result in unintended consequences and increased costs for households and businesses.”
Former state Public Service Commission chairman John Howard suggested the law could face legal challenges, noting, “The companies will likely get a friendly ear in federal court.”
