Today, New York Governor Cathy Hochul signed into law the Climate Superfund Act, which charges oil and gas companies an estimated $75 billion over the next 25 years. The controversial bill, proposed by Sen. Liz Krueger and Rep. Jeffrey Dinowitz, is modeled on federal and state Superfund laws that impose penalties on companies accused of polluting the environment.
Environmental groups welcomed the bill, but business groups argued it would increase the cost of doing business in the state and ultimately leave consumers bearing the brunt of higher energy prices.
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New York Governor Kathy Hochul (Lev Radin/Pacific Press/LightRocket, Getty Images)
“The Climate Superfund Act is now law,” said Senator Krueger. “Over the past decade, courts have often dismissed lawsuits against the oil and gas industry, arguing that climate change liability issues should be decided by Congress. Parliament – I accepted your invitation, and I hope we’ve made ourselves clear: Earth’s biggest climate polluters are uniquely responsible for causing the climate crisis, and they’re not just ordinary New Yorkers. must pay their fair share to help address the climate crisis.
But critics say the bill is unrealistic and subject to lengthy legal challenges.
“What do you want them to do? Don’t sell fuel in New York state,” said Ken Pokalski, vice president of the New York State Business Council.
New York State Sen. Liz Krueger, D-Manhattan. (Getty)
A group of business and industry leaders also slammed the bill, saying, “This bill is bad public policy that raises serious implementation questions and constitutional concerns. Moreover, its $75 billion price tag is a huge burden on household budgets and “This will have unintended consequences and increased costs for businesses.”
However, Governor Hochul hailed the bill as a victory for the state’s citizens and said the funds will be used for climate change mitigation efforts.
“This bill would allow the state to recover $75 billion from major polluters…For too long, New Yorkers have been bearing the costs of the climate crisis that is impacting every region of our state.”
The bill would result in significant assessments for domestic and foreign energy producers, with Saudi Arabia’s Saudi Aramco likely to face the biggest bill of $640 million a year, and Mexican state-owned company Pemex facing a $100 million annual bill. It is considering a claim of $93 million.
Russia’s Lukoil could face charges of about $100 million a year.
This assessment is based on estimated annual CO2 emissions measured in millions of tons of greenhouse gases.
A total of 38 companies deemed to be carbon polluters will be prosecuted, including US oil giants Exxon and Chevron, Britain’s Shell and BP, and Brazil’s Petrobras.
Critics of the law also note the potential difficulty in collecting required valuations from foreign companies.
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The bill is also relevant to consumer advocacy groups, given that it comes in conjunction with other new measures that will significantly impact commuters and consumers.
“We also note that this action follows the reinstatement of congestion pricing in New York City and precedes the Department of the Environment’s pending ‘cap-and-investment’ rule, which collectively It would impose $1 billion in new fossil valuations that would increase fuel use and impact a wide range of consumers,” opponents of the bill said.
David Unsworth reports on Latin America. You can follow David Unsworth on Twitter @LatinAmerUpdate.
