New York to charge fossil fuel companies for damage from climate change

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New York Governor Kathy Hochul signed a landmark bill on Thursday that will require major fossil fuel companies to pay fees aimed at addressing the effects of climate change. The new law, known as the Climate Change Superfund Act, establishes a fund to finance infrastructure projects designed to repair or prevent damage caused by climate change.

Under the law, companies responsible for significant greenhouse gas emissions will be required to contribute to the fund. The money will be used for resiliency projects, such as restoring coastal wetlands and upgrading roads, bridges, and water drainage systems to withstand extreme weather events.

State Senator Liz Krueger, who sponsored the bill, called it a major step toward holding polluters accountable. "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 legislation targets the largest greenhouse gas emitters between 2000 and 2018, although penalties won't be enforced immediately. The state first needs to create rules for identifying responsible companies, notifying them of fines, and deciding which projects will receive funding.

The measure is likely to face legal challenges. The American Petroleum Institute, the oil industry’s leading lobbying group, criticized the law, describing it as "a punitive new fee on American energy" and stating that it is "evaluating its options moving forward."

New York's legislation follows Vermont's adoption of a similar law earlier this year, signaling a growing trend among states to compel fossil fuel companies to shoulder the costs of climate adaptation.