Climate action tools trend
D Boggess
New York state will soon force major oil and gas companies to pay up for mounting climate damages caused by the burning of their products over the last two decades.
On December 26, lawmakers passed the Climate Change Superfund Act, modeled after federal and state Superfund laws that retroactively force polluters to fund the cleanup of their toxic waste. The New York legislation will require fossil-fuel companies responsible for the bulk of historic greenhouse gas emissions to pay a combined $3 billion each year for 25 years for infrastructure repairs and upgrades needed to recover from and adapt to climate change impacts like natural disasters, sea-level rise, and extreme heat.
New York is the second state to adopt a climate Superfund law following Vermont’s passage of a similar law last year. While it will take several years for state agencies to hammer out the details of exactly which companies will pay and how much, advocates say that the law marks an important step toward greater climate accountability in the Empire State.
Blair Horner, senior policy advisor at the New York Public Interest Research Group (NYPIRG), an advocacy organization closely involved with the law’s passage, described the law as a form of taxpayer relief for New Yorkers who — up until now — have paid for 100 percent of the costs of climate change. “This spreads the responsibility to what is likely to be the largest oil and gas companies,” Horner said.
An analysis by NYPIRG found that state taxpayers paid $2.2 billion in 2023 for climate-related repairs and projects. Those costs are only growing: A recent study by the state comptroller found that between 2018 and 2028, more than half of local government spending will be related to climate impacts. The Army Corps of Engineers estimates that protecting New York City from storm flooding will cost $52 billion, while protecting Long Island from natural disasters will cost up to $100 billion.
Legislators pointed out that $3 billion represents a fraction of the annual profits from the oil and gas industry, where the top three domestic producers made a combined $85.6 billion in profits in 2023 alone.
Most of the funds raised from New York’s law will go toward disaster response and immediate infrastructure needs to cope with a warming climate, including upgrading stormwater drainage systems and sewage treatment plants, protecting coastlines, and repairing roads and public transit lines.
Some of the money may also go toward energy efficiency projects, such as installing efficient cooling systems in schools and public housing, and weatherization and other building upgrades.