Due to climate change, NYS fines big energy $75 billion

Rochester, New York – Over the next 25 years, the state of New York will fine fossil fuel businesses a total of $75 billion.

Last week, Governor Kathy Hochul signed the Climate Change Superfund Act into law.
According to representatives, the funds will be reinvested in preventing additional environmental damage, which includes enhancing transportation networks, sewage and water systems, roads, significant harbor protection, and infrastructure.

The environmental attorney Alan Knauf of Knauf Shaw LLP stated, “Well, they certainly have a lot of costs going forward to adapt to climate change.”

According to Knauf, New York is holding oil firms accountable for climate change by blaming carbon dioxide emissions.

“To really go straight to the oil companies and say, ‘Hey, you guys got to pay,’ is a pretty, let’s say, radical, I guess it is, approach to this,” he added.

According to Knauf, the measure’s impartiality is up for debate.

“I certainly see the point of view of the state is ‘You sold this product, you knew what was going to happen, or you should have known,'” added the politician. “I think a lot of the oil companies did know, but the very least they should have figured it out, and you’re just liable for the consequences.”

According to state authorities, large corporations such as Exxon were aware of the potential destruction that fossil fuels could cause to the globe as early as the 1970s.

But in the end, who will foot the tab for this $75 billion? Ethan Wade of Brighton Securities stated that the rest of us will bear the expenses, despite state legislators’ claims that the customer won’t be responsible.

“It’s another example of New York state making it more difficult for businesses to operate here within the state,” stated the governor.

He claimed that making conducting business more difficult has an adverse effect on our finances.
“Exxon or Chevron or these large energy companies will not just pay this money freely,” Wade stated. “They won’t say, ‘Well, we’ll accept less profit and we’ll let New York State put some money into their coffers.'”

According to certain interest organizations, big oil has made around $1 trillion in recent years.
So why not use that to contribute to the $75 billion? It’s not that simple, Wade remarked.

“Because (the companies) have shareholders to answer to,” Wade stated. “They need to run their business. They will keep trying to increase their profit margins. We could claim that they have made all of these profits in any given year. We may alternatively choose 2020 and claim that they lost all of this money because of the pandemic that year.

Wade stated that this is not the end, while Knauf stated that the legislation is essentially retroactive.

Are they going to fight this in the end? They will undoubtedly face lawsuits as a result of this,” Wade stated. There will be numerous lawsuits resulting from this, as there are likely other industries that may have been affected. The oil firms will oppose it. By 2028, they won’t simply give out hundreds of millions of dollars to equal $75 billion. In the end, this will be resolved in court.”

To date, just two states in the United States have passed legislation attempting to hold energy companies responsible for climate change: Vermont and New York.

“(The companies are) going to say it’s unconstitutional,” Knauf stated. “It’s being retroactive, and the federal government has primary jurisdiction under the Clean Air Act, so how can you take charge of this?”