Company press releases and official statements

New York Governor Signs $75 Billion Climate Superfund Act, Targeting Fossil Fuel Companies Over 25 Years

Dec 26, 2024, 06:40 PM

New York Governor Kathy Hochul has signed the Climate Change Superfund Act into law, marking a significant step in the state's approach to climate change. The legislation requires fossil fuel companies responsible for over 1 billion metric tons of greenhouse gas emissions between 2000 and 2018 to contribute to a state-run fund. This fund will collect an estimated $75 billion over 25 years, with annual payments of $3 billion, to support climate-related infrastructure and adaptation projects. These projects include coastal restoration, stormwater drainage improvements, and infrastructure upgrades, particularly in disadvantaged communities. The law aims to shift the financial burden of climate change adaptation from taxpayers to the fossil fuel industry, which is seen as primarily responsible for the crisis. The legislation follows a model similar to existing superfund programs for toxic waste and operates under a standard of strict liability, meaning companies must pay based on their historical emissions, regardless of past legal compliance. The law's implementation will involve identifying responsible parties, determining their share of expenses, and managing the distribution of funds. While environmental advocates and Democratic lawmakers have praised the move, industry groups have indicated potential legal challenges, citing concerns over federal preemption and the retroactive application of liability. New York becomes the second state after Vermont to enact such a law, potentially setting a precedent for other states.