Gov. Kathy Hochul approved a controversial law that would cost the state a staggering $75 billion for oil, natural gas and coal companies that contribute to carbon emissions and climate change.
But critics say the law is unenforceable, likely to be challenged in court, and ultimately only increases the burden on customers.
“What do you want them to do? Don't sell fuel in New York state,” said Ken Pokalski, vice president of the New York State Business Council, who opposed the measure.
The New York Climate Superfund is modeled after a federal law that holds polluters accountable for abandoned toxic waste sites, supporters said.
The money collected from oil companies over 24 years will go toward resilience projects such as coastal protection and flood mitigation.
“This bill would allow states to recover $75 billion from major polluters,” Hochul said Thursday in a message approving the bill.
He said energy companies are responsible for emitting 1 billion tons of greenhouse gases into New York's atmosphere.
“For too long, New Yorkers have been paying the price of the climate crisis, which is impacting every region of our state,” Hochul said, citing extreme storms as an example.
The governor said oil companies should pay for it.
An analysis conducted by the bill's sponsors, state Sen. Liz Krueger (D-Manhattan) and Rep. Jeffrey Dinowitz (D-Bronx), and obtained by the Post in August, found that foreign and U.S. companies It was shown that the total amount would be approximately $3 billion per year. 25 years.
Saudi Arabian oil giant Saudi Aramco could face the highest annual assessment of any company ($640 million annually) for emitting 31.269 billion tons of greenhouse gases from 2000 to 2020. There is sex.
Aramco (officially known as Saudi Arabian Oil Company) is owned by the Saudi royal family.
Mexico's national oil company Petroleos Mexicanos (Pemex) could be assessed $193 million for emitting 9,512 tons of CO2 and producing 9.512 billion tons of greenhouse gases.
Russia's Lukoil could be assessed a $100 million annual fee for emitting 4.912 billion CO2 emissions.
The 38 companies identified as carbon polluters include U.S. oil giants such as Exxon and Chevron, as well as Britain's Shell and BP, France's Total Energies IES, Brazil's Petrobras, Australia's BHP, Switzerland's Glencore and Norway. These include Equinor of India and ENI of India. Italy.
Oil industry representatives said the new law is a declaration of war against the companies that provide energy and power to New York.
On Dec. 5, more than 30 energy companies and business advocates sent a letter to Hochul urging him to veto the bill.
“This law is bad public policy that raises serious implementation questions and constitutional concerns. Moreover, its $75 billion price tag will have unintended consequences and increased costs for households and businesses. '' said the letter, co-signed by the Business Council, American Petroleum Institute Northeast Region, National Fuel and Gas Company, and others.
It's a double whammy for businesses and drivers who will now have to pay a new minimum $9 congestion fee to enter midtown Manhattan, advocates wrote.
“We also note that this action follows the reinstatement of congestion pricing in New York City and precedes the Department of the Environment’s pending ‘cap-and-investment’ rule, which collectively It would impose $1 billion in new fossil valuations that would increase fuel use and impact a wide range of consumers,'' opponents of the bill said.
A former state energy utility regulator questioned whether the law would survive legal challenges.
“I think both companies will get a favorable hearing in federal court,” said John Howard, former chairman of the state Civil Service Commission.
He also wondered how New York State would raise money from foreign companies such as Saudi Aramco and Russia's Lukoil.
The new law was supported by climate change activists such as the Sierra Club and New York State Environmental Advocates.
