ALBANY, N.Y. — In a bold step towards combating climate change, New York Governor Kathy Hochul has signed a new bill requiring major fossil fuel companies to contribute fees aimed at funding climate resilience initiatives.
The newly enacted law mandates that corporations responsible for significant greenhouse gas emissions pay into a state fund dedicated to infrastructure projects. These initiatives are designed to either repair damage caused by extreme weather events or mitigate future climate-related risks.
Earlier this year, state lawmakers advanced this legislation, targeting large oil and gas companies to shoulder the financial burden of climate disaster repairs. This includes funding critical projects such as coastal wetland restoration and enhancements to vital infrastructure like roads, bridges, and drainage systems.
“The Climate Change Superfund Act is now law, and New York is sending a clear message: those most responsible for the climate crisis will be held accountable,” stated a sponsoring senator. “The largest polluters have a responsibility to aid New Yorkers in dealing with the repercussions of their actions.”
Under this legislation, companies identified as the top greenhouse gas emitters from 2000 to 2018 will face financial penalties. However, the implementation of fines won’t be immediate. New York will first establish regulations to outline how responsible parties will be identified and informed, as well as create a framework for allocating funds to specific infrastructure projects. Legal challenges to the law are anticipated.
In response, the oil industry has voiced concerns, labeling the law a “punitive new fee” on American energy and considers its options for future actions.
This move comes just months after Vermont implemented similar legislation, highlighting a growing trend among states to hold fossil fuel companies accountable for climate change impacts.
