Large fossil fuel companies would have to pay fees to help New York fight the effects of climate change under a bill signed Thursday by Gov. Kathy Hochul.
The new law requires companies responsible for substantial greenhouse gas emissions to pay into a state fund for infrastructure projects meant to repair or avoid future damage from climate change.
Lawmakers approved the bill earlier this year to force big oil and gas companies to contribute to the cost of repairs after extreme weather events and resiliency projects such as coastal wetland restoration and upgrades to roads, bridges and water drainage systems.
“The Climate Change Superfund Act is now law, and New York has fired a shot that will be heard round the world: the companies most responsible for the climate crisis will be held accountable,” said state Sen. Liz Krueger, a Democrat who sponsored the bill.
“The planet’s largest climate polluters bear a unique responsibility for creating the climate crisis, and they must pay their fair share to help regular New Yorkers deal with the consequences,” Krueger said.
The biggest emitters of greenhouse gases between 2000 and 2018 would be subjected to the fines.
The law won’t start penalizing companies immediately. Instead, the state must come up with rules on how to identify responsible parties, notify companies of the fines and create a system to determine which infrastructure projects will be paid for by the fund. Legal challenges are expected.
“This type of legislation represents nothing more than a punitive new fee on American energy, and we are evaluating our options moving forward,” the American Petroleum Institute, the oil industry’s top lobbying group, said in a statement.
New York’s governor signed the measure months after Vermont put a similar law in place.
(AP)
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They may run into legal problems trying to collect damages for activities done out of state, for activities in which the state and its residents were involved (failure to name as defendants New York residents who use oil and gas), and for which damages are hard to prove (especially for a state that often gets heavy snow and cold weather, and has a short growing season, meaning New York benefits from global warming). There are probably will be enough equal protection and due process issues (not to mention supremacy clause issues) to get the case to the United States Supreme Court, which is not likely to be sympathetic.
Plus many of the defendants might simply stop operation in New York State, which be design, produces very little of its own oil or gas.