New York has become the second state in the U.S. to require fossil fuel companies to pay for climate damage, joining an increasing effort to hold major polluters accountable for the rising frequency and cost of extreme weather disasters.
According to the Washington Post, the bill signed into law by New York Governor Kathy Hochul will allow the state to impose fines totaling up to $75 billion on the largest greenhouse gas emitters, to be paid over 25 years into a fund. The fines will be determined based on each company’s contribution to total emissions from 2000 to 2018.
The funds collected will be used to address damages already inflicted on homes, roads, and bridges, as well as to help finance preparations for more extreme weather events in the future.
“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,” Hochul said in a statement accompanying the bill’s signing.
“New York has fired a shot that will be heard round the world: the companies most responsible for the climate crisis will be held accountable,” said state Sen. Liz Krueger (D), who sponsored the bill.
The legislation, known as the Climate Change Superfund Act, is similar to a bill that Vermont lawmakers approved last summer. Several other Democratic-led states, including California, Maryland, and Massachusetts, considered similar measures but were unable to pass them this year.
The concept behind these bills is derived from the federal Superfund Act, which mandates that polluting companies clean up toxic waste sites. Environmentalists have been advocating for a “polluter pays” approach to address the increasing disasters fueled by climate change.
Advancements in climate attribution science and the rising costs associated with climate-driven floods, hurricanes, and wildfires have sparked interest among Democratic lawmakers in holding corporations financially responsible for climate damages.
New York Public Interest Research Group (NYPIRG) Executive Director Blair Horner said, “It’s spreading from state to state among policymakers because they are all confronting the same issue — the rising costs of dealing with climate damage.”
New York’s law is likely to face legal challenges, as the American Petroleum Institute (API), a powerful oil and gas industry lobby group, has sent a letter to state legislators indicating that the proposed legislation may be unconstitutional. They argue that it could be struck down by a court because it predates federal law and seeks to hold companies accountable for actions taken by society as a whole.
“This type of legislation represents nothing more than a new punitive tariff on American energy, and we are evaluating our options moving forward,” stated Scott Lauermann, a spokesperson for API, after the governor signed the bill.
Nationally, weather-related disasters are becoming increasingly common, costing the U.S. about $150 billion annually on average, according to the latest National Climate Assessment released in 2023. The report paints a stark picture of a nation whose economy, environment, and public health are facing escalating threats as the planet warms.
However, federal disaster relief typically covers only a fraction of what cities and towns need to recover from catastrophic floods or wildfires, leaving much of the financial burden to states, municipalities, and taxpayers.
In the case of New York, advocates for the new law have noted that a series of storms this year have highlighted the state’s growing vulnerability to climate change. Since January 2024, New York has experienced eight weather disasters, each causing over $1 billion in damages, according to the National Oceanic and Atmospheric Administration (NOAA). This marks a record for New York since data collection began in 1980; the previous record was set last year.
