On Thursday, Governor Kathy Hochul signed a bill in New York that mandates large fossil fuel companies to pay fees to assist the state in combating the impacts of climate change. The legislation requires companies with significant greenhouse gas emissions to contribute to a state fund designated for infrastructure projects aimed at mitigating and preventing future climate-related damages.
Lawmakers passed the bill earlier this year to compel major oil and gas corporations to financially support repair efforts following extreme weather events and resilience initiatives like coastal wetland restoration, road enhancements, bridge upgrades, and water drainage system improvements.
The bill's sponsor, a Democratic state Senator, emphasized the significance of the Climate Change Superfund Act, stating that it holds the most culpable companies accountable for their role in the climate crisis. The law targets the largest greenhouse gas emitters from 2000 to 2018 for potential fines.
While the law does not immediately impose penalties on companies, the state is tasked with developing guidelines to identify responsible entities, notify them of fines, and establish a framework for determining which infrastructure projects will be financed by the fund. Legal challenges are anticipated.
The American Petroleum Institute, the primary lobbying organization for the oil industry, criticized the legislation as a punitive fee on American energy and is exploring future actions in response.
New York's enactment of this law follows Vermont's implementation of a similar measure earlier this year, signaling a growing trend in holding major greenhouse gas emitters financially accountable for climate change impacts.
