In an effort to protect the state’s environment and recover from the damage caused by fossil fuel emissions, New York Governor Kathy Hochul recently signed the Climate Change Superfund Act into law.
The new law will require oil companies to pay $75 billion over the next 25 years to help support projects that increase the state’s resiliency to the effects of climate change, such as flooding and extreme heat. New York is the second state in the nation to set up this type of Superfund; Vermont passed a similar bill earlier this year.
“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 in a recent statement. “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.”
The new law establishes the Climate Change Adaptation Cost Recovery Program, which will require these companies to pay a portion of the $3 billion annual penalties related to their prior emissions. The fines assessed under the new law are based on a company’s historic greenhouse gas emissions and “no finding of wrongdoing is required,” according to the bill’s language.
“These punitive measures against past polluters dovetail perfectly with the governor’s bold vision for a ‘Cap and Invest’ program that will help curb future greenhouse gas emissions and generate revenue to help New York transition to a more equitable clean energy economy. The Sierra Club is excited to see this momentum carry into 2025,” said Sierra Club Atlantic Chapter Conservation Director Roger Downs in a recent statement.
Before any penalties are assessed, the state must first adopt methodologies to properly determine the responsible parties, as well issue notices of “cost recovery demand” to these parties and the consequences of non-payment.
