New York fires $75 billion shot for Big Oil to foot the landmark climate ‘superfund’ bill

As the climate crisis continues to wreak havoc across the globe, New York has taken decisive action to hold fossil fuel players accountable for their pollution effects by establishing a new climate fund, described as landmark legislation to strengthen the state’s climate endeavors and environmental protection laws.

Governor Kathy Hochul, who signed the legislation S.2129-B/A.3351-B to create a climate ‘superfund,’ has bolstered New York’s efforts to protect and restore the environment by requiring large fossil fuel companies to pay for critical projects that boost New York’s resiliency to dangerous climate woes like flooding and extreme heat.

State Senator Liz Krueger emphasized: “The Climate Change Superfund Act is now law, and New York has fired a shot that will be heard round the world: the companies most responsible for the climate crisis will be held accountable. Too often over the last decade, courts have dismissed lawsuits against the oil and gas industry by saying that the issue of climate culpability should be decided by legislatures.

“Well, the Legislature of the State of New York – the 10th largest economy in the world – has accepted the invitation, and I hope we have made ourselves very clear: 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. And there’s no question that those consequences are here, and they are serious.“

This landmark legislation is seen as a way to shift the cost of climate adaptation from everyday New Yorkers to the fossil fuel companies deemed most responsible for the pollution. The law, which launches a Climate Change Adaptation Cost Recovery Program, ensures Big Oil contributes to the funding of critical infrastructure investments, such as coastal protection and flood mitigation systems, enhancing the climate resilience of communities across the state.

“Repairing from and preparing for extreme weather caused by climate change will cost more than half a trillion dollars statewide by 2050. That’s over $65,000 per household, and that’s on top of the disruption, injury, and death that the climate crisis is causing in every corner of our state. The Climate Change Superfund Act is a critical piece of affordability legislation that will deliver billions of dollars every year to ease the burden on regular New Yorkers,” elaborated Senator Krueger.

Furthermore, another significant climate law, signed by Governor Hochul a few days ago, expands upon New York State’s 2014 prohibition of high-volume hydraulic fracturing to extract natural gas. As a result, 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.

Sean Mahar, New York State Department of Environmental Conservation Interim Commissioner, underlined: “By ensuring those responsible for historic climate-altering emissions bear the costs of the significant health, environmental, and economic impacts already being passed on to New Yorkers, this law will complement the State’s efforts to reduce greenhouse gas emissions, help communities adapt to the climate-driven impacts experienced today, and leverage the significant investments the Governor is making in climate resilience.”

Moreover, New York State’s climate agenda calls for an affordable and just transition to a clean energy economy in a bid to establish jobs, promote economic growth through green investments, and direct a minimum of 35% of the benefits to disadvantaged communities. To this end, the state is advancing its agenda to achieve an emissions-free economy by 2050 across the energy, buildings, transportation, and waste sectors.

Jeffrey Dinowitz, Assemblymember pointed out: “We refuse to let the entire burden of climate change fall on the backs of our taxpayers while Big Oil reaps record profits at the expense of our future. The Climate Change Superfund Act is a groundbreaking victory for accountability, fairness, and environmental justice.

“By ensuring the fossil fuel industry pays for some of the damages it has caused, we’re addressing the staggering costs of climate adaptation and setting a precedent for the nation to follow. This law is a testament to New York’s leadership in tackling the climate crisis head-on, and I am proud to have helped lead this battle every step of the way.”

According to New York State Senator Kruger, the bill will charge the largest multinational oil and gas companies for New York’s climate adaptation costs while insulating consumers by using the polluter-pays model exemplified by existing federal and state ‘superfund’ laws to collect $75 billion over 25 years for climate change adaptation from big oil and gas companies that are considered most responsible for causing the climate crisis.

Vanessa Fajans-Turner, Environmental Advocates NY Executive Director, underscored:“Governor Hochul’s signing of the Climate Change Superfund Act and the CO2 Fracking Ban are pivotal steps in safeguarding New Yorkers’ wallets and water. These measures hold the fossil fuel industry accountable for the immense costs of climate change while closing dangerous loopholes that permitted harmful fracking practices.

“Together, they provide vital funding for infrastructure, protect public health, reduce financial burdens on families and disadvantaged communities, and strengthen the State’s economic resilience. These actions represent significant milestones in New York’s climate journey, setting a critical precedent for corporate accountability and forward-thinking leadership as we enter a new political era.”

Senator Kruger outlines that the Climate Change Superfund Act, which is modeled on the existing State and Federal Superfund law that requires polluters to fund toxic waste dump cleanups, makes Big Oil climate polluters financially responsible for the environmental damages they allegedly caused. The top Big Oil companies will be required to pay a combined total of $75 billion over 25 years.

New York State Senator Kruger explained: “New York is facing staggering—and growing—climate costs. Last year alone Governor Hochul announced $2.7 billion in taxpayer funding for climate-related infrastructure repairs and upgrades and resilience projects. The U.S. Army Corps of Engineers estimates that it will cost $52 billion just to protect NY Harbor. On top of that, we’ll need $75-$100 billion to protect Long Island, and $55 billion for climate costs across the rest of the state.

“The state Comptroller has predicted that more than half of local governments’ costs will be attributable to the climate crisis. Big Oil is at fault for climate change, and it can certainly afford the costs. According to a study in One Earth, the world’s 21 top polluting companies are responsible for $5.4 trillion in climate damages over a period of 26 years. While these climate damage bills pile up for taxpayers, the industry responsible for this mess is raking in cash. From January 2021 through now, Big Oil has made $1 trillion in profits.”

While emphasizing that the record profits allowed Big Oil to deliver unprecedented returns to shareholders, Senator Kruger is adamant they did little to address the climate crisis they knew was coming, as scientists working for Exxon in the 1970s made “remarkably accurate projections of just how much burning fossil fuels would warm the planet.” However, “the oil giant publicly cast doubt on climate science, and cautioned against any drastic move away from burning fossil fuels, the main driver of climate change.”             

Based on a poll from Data for Progress, 89% of New Yorkers support fossil fuel companies covering at least some of the cost for climate damages while another poll found that 70% of New York voters support the Climate Change Superfund Act, including majorities across party lines.

Governor Hochul highlighted: “With nearly every record rainfall, heatwave, and coastal storm, New Yorkers are increasingly burdened with billions of dollars in health, safety, and environmental consequences due to polluters that have historically harmed our environment.

“Establishing the Climate Superfund is the latest example of my administration taking action to hold polluters responsible for the damage done to our environment and requiring major investments in infrastructure and other projects critical to protecting our communities and economy.”

On a national level, 89% of Democratic voters support the climate superfund approach, with 53% of New York voters more likely to vote for candidates who support the passing of a climate superfund bill.

Julia Walsh, Frack Action Director, stated: “Thank you to Governor Hochul for signing the ban on drilling and fracking with carbon dioxide. New Yorkers can breathe a sigh of relief knowing that the loophole is closed and our state will remain frack free. Our thanks also to the legislature for passing the bill.”

Gov. Andrew M. Cuomo signed legislation to ban offshore drilling in New York’s waters in April 2019, which was interpreted as an attempt to thwart the Trump administration’s hopes of opening the Eastern Seaboard for oil and gas exploration.

The New York City Council recently presented a new bill for a feasibility study of zero-emission port operations by 2040, following a $10 million solicitation for clean hydrogen research, development, and demonstration projects in May 2023.