Governor Kathy Hochul took a significant step towards safeguarding the environment in New York by signing groundbreaking legislation on Thursday. The newly enacted law, S.2129-B/A.3351-B, mandates that large fossil fuel companies bear the financial responsibility for vital initiatives aimed at protecting and restoring the environment. Under this legislation, a ‘Climate Superfund‘ will be established to support projects within New York that enhance the state’s ability to withstand the adverse effects of climate change, such as flooding and extreme heat.
“With nearly every record rainfall, heatwave, and coastal storm, New Yorkers are increasingly burdened with billions of dollars in health, safety, and environmental consequences due to polluters that have historically harmed our environment,” Governor Hochul said. “Establishing the Climate Superfund is the latest example of my administration taking action to hold polluters responsible for the damage done to our environment and requiring major investments in infrastructure and other projects critical to protecting our communities and economy.”
This groundbreaking legislation transfers the burden of climate adaptation expenses from ordinary New Yorkers to the fossil fuel companies that bear the greatest responsibility for pollution. The enactment of a Climate Change Adaptation Cost Recovery Program guarantees that these companies will contribute to the financing of essential infrastructure projects, like coastal protection and flood mitigation systems, in order to bolster the climate resilience of communities statewide.
New York State Department of Environmental Conservation Interim Commissioner Sean Mahar said, “Holding polluters accountable for the damages they cause is essential to New York’s environmental protection efforts, and I commend Governor Hochul for signing this historic climate legislation into law. By ensuring those responsible for historic climate-altering emissions bear the costs of the significant health, environmental, and economic impacts already being passed on to New Yorkers, this law will complement the State’s efforts to reduce greenhouse gas emissions, help communities adapt to the climate-driven impacts experienced today, and leverage the significant investments the Governor is making in climate resilience.”
New York State aims to achieve an affordable and equitable transition to a clean energy economy that generates well-paying jobs, fosters economic expansion through sustainable investments, and ensures that at least 35 percent of the benefits reach marginalized communities. To realize this goal, New York is spearheading a range of initiatives across various sectors, such as energy, buildings, transportation, and waste management, to pave the way for a carbon-free economy by 2050.
According to the New York Public Interest Research Group, New York has become the second state, following Vermont, to mandate that fossil fuel companies bear the cost of climate damage. This legislation is expected to generate $75 billion over a span of 25 years from the oil and gas companies primarily accountable for the climate crisis. The funds raised will be allocated towards essential climate adaptation and resilience initiatives throughout the state.
“The governor’s approval of the Climate Change Superfund Act is a welcome holiday gift for New York taxpayers. Until her approval, New York taxpayers were 100% on the financial hook for climate costs. Now Big Oil will pay for much of the damages that they helped cause. As a result, New Yorkers will have their future tax burden reduced by $3 billion annually,” said Blair Horner, Executive Director of NYPIRG. “This legislation is also designed to ensure that the oil industry will protect consumers from Climate Superfund costs being passed along. It’s a win for taxpayers and consumers. NYPIRG applauds the action by Governor Hochul, Senator Krueger, Assemblymember Dinowitz, and the other legislative supporters for making this innovative proposal become law.”
