New York Enacts Legislation Requiring Fossil Fuel Companies Pay $3B Annually for “Climate Damage Repair”

Wedoany.com Report-Dec 30,New York Governor Kathy Hochul signed legislation (S.2129-B/A.3351-B) requiring fossil fuel companies to contribute $3 billion annually for “climate damage repair” over 25 years for a total of up to $75 billion.

By creating a Climate Change Adaptation Cost Recovery Program, this law—modeled on federal Superfund legislation—ensures that these companies will contribute to the funding of infrastructure investments, such as coastal protection and flood mitigation systems, to enhance the climate resilience of communities across the state.

According to the legislation, at least 35%, with a goal of 40% or more of the overall benefits of program spending would go to climate change adaptive infrastructure projects that directly benefit disadvantaged communities.

This act is remedial in nature, seeking compensation for damages resulting from past actions. The American Petroleum Institute criticized it as a punitive fee on energy.

Governor Hochul also signed legislation expanding 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.