Hochul signs bill that would charge energy companies $75B in fees, but critics say consumers will really foot the bill

Today, New York Governor Kathy Hochul signed into law the Climate Change Superfund bill, which will charge oil and gas companies approximately $75 billion over the next 25 years. The controversial measure, sponsored by Sen. Liz Krueger and Rep. Jeffrey Dinowitz, is modeled on federal and state Superfund laws to bring charges against companies accused of pollution.

While environmental groups welcomed the legislation, business groups argued it would increase the cost of doing business in the state, and consumers would ultimately bear the brunt of higher energy prices.

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“The Climate Change Superfund Act is now law,” said Senator Krueger. “Over the past decade, courts have regularly dismissed lawsuits against the oil and gas industry, saying climate liability issues should be decided by legislative bodies. Well, the Legislature of New York State, the tenth largest economy in the world – has accepted the invitation, I hope. We’ve made it clear: The planet’s largest climate polluters are uniquely responsible for causing the climate crisis, and they must pay their fair share to help ordinary New Yorkers cope with the consequences.

Critics, however, view the bill as unrealistic and believe it will face long-term legal challenges.

“What do you want them to do? Don’t sell fuel in New York state,” said Ken Pokarski, vice president of the New York State Business Council.

New York State Sen. Liz Krueger, D-Manhattan. (Getty)

A group of business leaders also lambasted the measure: “This legislation is bad public policy and raises significant implementation and constitutional issues. Additionally, its $75 billion cost will lead to unintended consequences and increase the cost for families and businesses.” cost.

However, Governor Hochul hailed the legislation as a victory for the state’s citizens and said the funds will be used to mitigate climate change efforts.

“This bill would allow New York State to recoup $75 billion from major polluters… For too long, New Yorkers have been bearing the costs of a climate crisis that is impacting every region of the state.”

The bill would result in major assessments for domestic and foreign energy producers, with Saudi Arabia’s Saudi Aramco likely to face the largest bill at $640 million per year, while Mexico’s state-owned Pemex would face $193 million per year.

Russia’s Lukoil could face charges of around $100 million a year.

These assessments are based on estimates of annual carbon dioxide emissions, measured in million tons of greenhouse gases.

A total of 38 companies deemed to be carbon polluters will be punished, including US oil giants Exxon Mobil and Chevron, British Shell and BP, and Petrobras.

Critics of the legislation also point to potential difficulties in gathering required assessments from foreign companies.

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The bill also involves consumer advocacy groups as it joins other new measures that will have a big impact on commuters and consumers:

“We also note that this measure would come after New York City’s reinstatement of congestion pricing, and ahead of the Environment Department’s pending ‘cap and invest’ rules, which combined will also impose billions of dollars in new fossil fuel Assessing fuel use affects a wide range of consumers,” opponents of the bill said.