On the day after Christmas, Governor Kathy Hochul signed the Climate Change Superfund Act adding to New York’s version of the Green New Deal. New York plans to collect $75 billion over twenty-five years for climate change adaptation from what they say are ‘the parties most responsible for causing the climate crisis - big oil and gas companies’. The bill was carried by Democrats Senator Liz Krueger and Assembly Member Jeffrey Dinowitz.
Climate activists call this a big win. They say the $75 billion will flow back into infrastructure and other ‘resiliency’ projects, and that may be true. Funds could be spent on these things from the fines and fees imposed on the energy companies. The ‘Big Lie’ here is that though the funds will technically come from energy companies, the energy companies get their money from us—the customers.
It is all of us ratepayers who will pay for this with higher rates on our energy bills. The Hochul Administration and the Democrat-led legislature are hiding behind the language of the Climate Change Superfund Act.
Hochul said, “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," she added.
The Democrats in Albany fully believe that Big Oil is at fault for climate change. The Climate Change Superfund Act is modeled on the existing State and Federal Superfund law by making Big Oil climate polluters financially responsible for the environmental damages they are accused of causing.
New York Conservative Party Chairman, Gerry Kassar, says, “The funding mechanism that places a multi-billion dollar burden on business will be another successful effort by Hochul and NYS to drive business out of the state. The Democratic-controlled legislature and Governor Hochul have made this their specialty.”
"What would you have them do? Not sell fuel in New York state," said New York State Business Council Vice President Ken Pokalsky.
"The Business Council is certainly disappointed with the so-called “climate superfund” bill, which will impose “punitive” assessments against businesses that produced fuels that were vital to the support of New York’s households, businesses, and overall economy for the past several decades. We recognize the importance of responding to global climate change and have been working with state officials to develop effective, workable approaches. However, we expect this legislation to be subject to protracted litigation. Given its potential legal challenges, costs, and discriminatory nature, we continue to see it as a bad policy for New York State."
Upstate United Executive Director, Justin Wilcox, says "Governor Hochul's decision to sign the Climate Change Superfund Act law is a misguided move that does a disservice to all New Yorkers, who already pay enough to fund the shortsighted measures linked to the CLCPA. This legislation, while aimed to address climate change fails to consider the practical realities faced by residents across the state.
"New Yorkers will STILL rely on fossil fuels to get to work and heat their homes, and in upstate New York, having the ability to do just that, with heating oil, natural gas, and propane, as the difference between life and death. Thus ill-advised decision is guaranteed to be quickly set with a host of lawsuits and legal challenges, further burdening New York taxpayers with the responsibility to foot the bill," Wilcox added.
In the end, this law will fleece the regular New York family. It is working families that will pay the price for this tax burden on business. Companies are not going to simply absorb $75 billion in costs. Everyone paying attention knows these costs will be passed on to customers’ bills.