ALBANY, N.Y. — New York Governor Kathy Hochul has enacted a new law that mandates significant fossil fuel companies to contribute financially to the state’s efforts in combating climate change.
This legislative move requires companies that have historically produced considerable greenhouse gas emissions to deposit funds into a state-managed account designated for infrastructure initiatives aimed at alleviating or preventing damage caused by climate-related events.
The bill was previously endorsed by state lawmakers earlier this year, aiming to ensure that major oil and gas corporations assist in covering the expenses associated with restoration following severe weather occurrences.
Furthermore, it promotes resiliency strategies, such as restoring coastal wetlands and upgrading essential infrastructure like roads, bridges, and drainage systems.
“The Climate Change Superfund Act is now law, symbolizing New York’s commitment to accountability: those who have significantly contributed to the climate crisis will face repercussions,” stated state Senator Liz Krueger, a Democrat, who was instrumental in sponsoring the legislation.
“The largest global climate contributors bear a distinct obligation for instigating this crisis, and they must contribute their fair share to help New Yorkers cope with its impacts,” she emphasized.
The law targets the leading greenhouse gas emitters from 2000 to 2018, although it won’t impose penalties on these companies right away.
The state is tasked with developing regulations to effectively identify responsible entities, inform them about the penalties, and establish a framework to decide which infrastructure projects will benefit from the fund’s contributions.
Legal disputes surrounding this legislation are anticipated.
In a response to the enactment, the American Petroleum Institute, the main lobbying organization for the oil sector, criticized the legislation as merely a new financial burden on American energy producers.
“We are currently assessing our options as we move forward,” the organization noted.
This new law follows Vermont’s introduction of a comparable statute earlier this year.
