New York state government is taking action to fight global warming. One way it is doing this is through encouraging companies that are alleged to have contributed to pollution to reduce their carbon footprint.
To hold them accountable for pollution, Gov. Kathy Hochul recently signed a new law to force companies to pay for damage that came about due to extreme weather events. It is called the Climate Change Superfund Act. For companies confronted by these accusations and the possibility of hefty fines, it is important to have legal protection.
What does this new law mean?
The object of the law is to pursue companies whose operations cause pollution and obligate them to pay to fix damage that came about because of extreme weather. There is believed to be a link between fossil fuels and extreme weather events. If a company is found to be responsible for a significant proportion of carbon emissions buildups in the 25 years from 2000 through 2024, they must be $3 billion per year for each year.
Lawmakers want to reduce the cleanup costs for taxpayers. When there is a large storm, there is generally substantial damage that needs to be repaired. By shifting that responsibility from ordinary citizens to companies, it will defray the cost while giving companies an incentive to be more carbon friendly. Oil and gas companies are target of the law since they contribute heavily to greenhouse gases.
Businesses are understandably against the law. While the entire country is trying to address climate change in various ways, New York is only the second state to create a “superfund” with Vermont having been the first.
The penalties cannot be collected on yet. Companies are preparing challenges to the law. In addition, the reduction in people being obligated to contribute to the repairs after large, damaging storms could be canceled out by energy companies simply raising prices. This assertion is currently being debated.
Energy companies must prepare for new environmental laws
This is just one of myriad environmental laws that are being proposed and put in effect. Companies that are involved in energy and the environment can face regulations, accusations, legal filings and other complex issues.
This law is just one example of the challenges they can be confronted with. When trying to navigate this complex terrain and protect their interests, companies need to be shielded by those who understand all areas of environmental law and changes as they come about.