NY state passes ‘Climate Superfund’: oil companies must foot bill

New York State has passed new legislation that will require large fossil fuel companies to fund efforts to protect the environment and mitigate  the growing costs of climate change.  Legislation S.2129-B/A.3351-B creates a ‘Climate Superfund’ to support New York-based projects that bolster New York’s resiliency to dangerous climate impacts like 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 landmark legislation shifts the cost of climate adaptation from everyday New Yorkers to the fossil fuel companies most responsible for the pollution. By creating a Climate Change Adaptation Cost Recovery Program, this law ensures that these companies contribute to the funding of critical infrastructure investments, such as coastal protection and flood mitigation systems, to enhance the climate resilience of communities across the state.

New York Public Interest Research Group (NYPIRG) Executive Director Blair Horner said, “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. 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.”

Another new significant climate law signed by Governor Hochul  last week expands upon New York State’s 2014 prohibition of high-volume hydraulic fracturing to extract natural gas. Legislation S.8357/A.8866 amends the State Environmental Conservation Law to prohibit the use of carbon dioxide in gas or oil extraction to prevent potential negative health or environmental effects from carbon dioxide fracking in the state.