A new law in New York is aiming to make fossil fuel companies pay up for pollution. State lawmakers, including Democratic New York Gov. Kathy Hochul said these oil, gas and coal companies are now on the hook for projects to reduce the effects of climate change.
Hochul signed the bill into law on Thursday, Dec. 26, under which fossil fuel companies will be fined $75 billion over 25 years for damage caused to the climate.
The money will reportedly go into a fund to pay for infrastructure projects related to mitigating the effects of climate change or a so-called “Climate Superfund” starting in 2028.
Democratic lawmakers are praising the legislation.
“The companies most responsible for the climate crisis will be held accountable,” State Sen. Liz Krueger, D-NY, said.
Fossil fuel companies will be charged based on the amount of greenhouse gases they released into the atmosphere between 2000 and 2018.
The law applies to any company the New York Department of Environmental Conservation deems responsible for more than one billion tons of global greenhouse emissions.
However, the law will not begin fining companies right away.
First, the state must come up with rules to identify the biggest polluters and then notify the companies of the penalties. Afterward, the state must determine the infrastructure projects the funds will go toward.
Oil, coal and gas companies are reportedly expected to challenge the law in court.
The American Petroleum Institute, which is the oil industry’s top lobbying group, responded to the law in a statement.
“This type of legislation represents nothing more than punitive fee on American energy, and we are evaluating our options moving forward,” the statement said.
New York is now the second state to pass such legislation fining fossil fuel companies for pollution. Vermont became the first this summer.
