New York Governor Signs Climate Bill Charging Oil and Gas Companies $75B But Who Really Pays?

New York just approved a plan that will charge oil and gas companies $75 billion over 25 years, sparking questions about who really pays the bill.

Key Facts:

Gov. Kathy Hochul signed the Climate Change Superfund Act yesterday, sponsored by Senator Liz Krueger and Assembly Member Jeffrey Dinowitz.
The law targets 38 companies, including Exxon, Shell, and Saudi Aramco, based on estimated yearly CO₂ emissions.
Saudi Aramco faces the largest annual charge of $640 million, and Russia’s Lukoil could owe around $100 million.
Critics argue the law will raise consumer costs and may face legal challenges.

The Rest of The Story:

Environmental groups praise the law as a meaningful way to hold major polluters accountable. They argue the fees will fund climate mitigation projects across the state, easing the burden on everyday New Yorkers.

“The Climate Change Superfund Act is now law,” said Senator Krueger, adding that it ensures “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.”

Business groups warn that energy firms will pass along extra costs or leave the state. They also question how effectively foreign companies can be compelled to pay, considering international legal hurdles.

One industry statement calls it “bad public policy that raises significant implementation questions,” warning it will lead to “increased costs for households and businesses.”

Ken Pokalsky of the New York State Business Council even asks, “What would you have them do? Not sell fuel in New York State?”

I look forward to seeing this in the court system.

Also, would love to see NY function without gas and fuel if this comes to fruition and companies just stop doing business in the state.

"Today New York Governor Kathy Hochul signed into law the Climate Change Superfund Act,… https://t.co/JfeKL46DiF

— Tracy Shuchart (𝒞𝒽𝒾 ) (@chigrl) December 27, 2024

Gov. Hochul maintains it’s a necessary step, saying, “This bill would allow the state to recoup $75 billion from major polluters…For too long New Yorkers have borne the costs of the climate crisis.”

Commentary:

If the law holds up in court, companies may reduce fuel sales in New York or hike prices to offset the fees. That could hurt consumers facing an already tough economy.

Rather than protecting residents, this could mean fewer energy options and higher bills for families and businesses.
The state may want a strong environmental stand, but it risks adding new costs to millions of people for a cause some consider controversial.

The Bottom Line:

New York’s Climate Change Superfund Act aims to make oil and gas firms pay for pollution, but it could also leave New Yorkers facing fewer energy choices and bigger bills. The debate over who truly carries the burden may intensify in the coming months.