Gov. Kathy Hochul signed a law on Thursday that requires fossil fuel companies to pay billions for their role in the climate crisis. The move makes New York the second state in the U.S. to hold oil manufacturers accountable for supporting projects that protect against the damages of floods, hurricanes and other climate disasters.
The new law, dubbed the Climate Change Superfund Act, requires companies that have emitted the most greenhouse gases to pay an estimated $75 billion to support state climate projects. Fossil fuel manufacturers will pay roughly $3 billion annually into a state fund over the next 25 years, with individual companies’ contributions based on their total emissions between 2000 and 2024.
The funds will be used to repair buildings and roads damaged by climate disasters and build new infrastructure to prevent damage from future disasters including floods, hurricanes and wildfires. The payments could support projects such as restoring coastal wetlands, upgrading stormwater drainage systems and preparing bridges, roads and subways for climate damages.
“For too long, New Yorkers have borne the costs of the climate crisis, which is impacting every part of this state, including through extreme weather events that have become increasingly common, dangerous and costly,” Hochul said in a memo approving the bill.
The bill went through several changes before approval, including giving the Department of Environmental Conservation more time and authority to create the fund and implementing measures to increase transparency into future projects funded by the law, Hochul said.
New York’s law is part of a growing movement to hold private companies responsible for their role in the climate crisis. Vermont became the first state to pass a climate superfund law in May, and others including Maryland, California, Massachusetts, New Jersey and the federal government are considering similar measures.
The state has created previous funds to require payments for environmental damages, including the state superfund to support cleanups of toxic waste and the oil spill fund. But the Climate Change Superfund Act mandates the first fund for the cleanup of greenhouse gas emissions.
State environment officials will be required to create the climate superfund and start collecting payments by 2028. It is not yet known which companies will be required to pay into the fund.
