Today, New York Governor Kathy Hochul signed into law the Climate Change Superfund bill, which will charge oil and gas companies approximately $75 billion over the next 25 years. [emphasis, links added]
The controversial measure, sponsored by Sen. Liz Krueger and Rep. Jeffrey Dinowitz, is modeled on federal and state Superfund laws to bring charges against companies accused of pollution.
Although environmental groups strongly support the legislation, Business groups argue it will increase the cost of doing business in the state, and consumers will ultimately bear the brunt of higher energy prices.
“The Climate Change Superfund Act is now law,” said Senator Krueger. “Over the past decade, courts have frequently dismissed lawsuits against the oil and gas industry, saying climate liability issues should be decided by legislative bodies. Well, the Legislature of New York State, the world’s tenth largest economy, has accepted the invitation, and I hope we have Make it clear: Earth’s largest climate polluters are uniquely responsible for causing the climate crisis, and They must pay their fair share to help ordinary New Yorkers cope with the consequences.
However, Critics say the bill is unrealistic and believe it will face long-term legal challenges.
“What do you want them to do? Not sell fuel in New York state,” said Ken Pokarski, vice chairman of the New York State Business Council.
A group of business leaders also lambasted the measure:
“This legislation is bad public policy and raises significant implementation and constitutional issues. Additionally, its $75 billion price tag will result in unintended consequences and increase costs for households and businesses.
However, Governor Hochul hailed the legislation as a victory for the state’s citizens and said the funds will be used to mitigate climate change efforts.
“This bill would allow New York State to recoup $75 billion from major polluters… For too long, New Yorkers have been bearing the costs of a climate crisis that is impacting every region of the state.”
The bill would impose a major review of domestic and foreign energy producers, Saudi Arabia's Aramco is likely to face the largest bill, at $640 million per year, while Mexico's state-owned Pemex will face $193 million per year.
Russia's Lukoil could face charges of around $100 million a year.
These assessments are based on estimates of annual carbon dioxide emissions, measured in million tons of greenhouse gases.
A total of 38 companies deemed to be carbon polluters will be punished, including US oil giants Exxon Mobil and Chevron, British Shell and BP, and Petrobras.
Critics of the legislation also point to potential difficulties in gathering required assessments from foreign companies.
The bill also involves consumer advocacy groups as it joins other new measures that will have a significant impact on commuters and consumers:
“We also noticed The measure follows New York City's reinstatement of congestion pricing and ahead of the Environment Department's pending “cap and invest” rulesthe combination will also New multibillion-dollar assessment of fossil fuel use affects a wide range of consumers,” said opponents of the bill.
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