Governor Kathy Hochul recently approved a law requiring oil, natural gas, and coal companies to pay $75 billion to the state. The funds will be used to address carbon emissions and combat climate change. The law has sparked controversy, with critics arguing it is impractical, likely to face legal challenges, and could result in higher costs for consumers.
Ken Pokalsky, from the New York State Business Council, questioned the law’s fairness, asking if it meant energy companies would no longer sell fuel in New York. The $75 billion will be collected over 24 years from companies responsible for emissions. The funds will go toward projects to protect against coastal flooding and other climate-related challenges.
The law is based on a federal program that holds polluters accountable for cleaning up toxic waste sites. Governor Hochul argued that energy companies are responsible for releasing a billion metric tons of greenhouse gases into the state’s atmosphere and that New Yorkers should not bear the cost of the climate crisis.
The law will impose fees on major oil and gas companies, including Saudi Aramco, Exxon, and Chevron. For example, Saudi Aramco could face an annual fee of $640 million. The money will be used to fund projects aimed at improving climate resilience in New York.
However, many businesses and energy groups argue that this law will have negative effects on the economy, raising costs for households and businesses. They also raised concerns about its potential legal challenges and difficulties in collecting money from foreign companies.
The law was supported by environmental groups like the Sierra Club and Environmental Advocates NY, who argue it is a necessary step to fight climate change.