Several businesses and trade groups have formed a group to block a new law that New York Gov. Hochul signed. It forces gas companies to pay $75 billion for carbon emissions.
The group’s lawsuit targets the state’s Climate Change Superfund Act. Under this authoritarian law, the state decides who is responsible for most carbon emissions and fines them. The money will allegedly go into infrastructure to deal with weather events. They plan to fine foreign and out of state companies.
The group suing to block the law says holding liable companies operating outside the state is illegal.
Additionally, the group says that the roughly 38 companies identified as polluters and forced to pay would be unable to do so without passing on costs to consumers through price increases.
Twenty-two states have also sued New York over the climate law.
The lawsuit’s plaintiffs include the U.S. Chamber of Commerce’s Global Energy Institute, the New York State Business Council, the American Petroleum Institute, and the National Mining Association.
The president of the Global Energy Institute, Marty Durbin, said in a statement about the lawsuit, “Reliable, affordable energy helps power economic growth and enhances the quality of life for American families and communities. It defies logic that New York would pursue massive retroactive penalties from companies meeting consumer and business demand for this essential resource.
“This law is not only illegal and misguided, but it will likely increase the cost of energy, placing an unnecessary burden on New Yorkers and consumers nationwide, especially during a time of already high prices,” he added.
He also argued that the issue is “a global issue best left to the federal government.”
An analysis of the law conducted for its sponsors estimated that companies would have to collectively pay about $3 billion annually for 25 years. It provided an example of the type of fees companies could be required to pay. The Saudi Arabia-based Saudi Aramco could be fined $640 million a year, the largest annual fee ever for a company. Meanwhile, the state-owned Petroleos Mexicanos could be forced to pay $193 million annually.
Other companies identified as polluters in the analysis include Exxon, Chevron, Shell, and BP. Shell and BP are also foreign companies based in the United Kingdom.
The chairman of the New York GOP, Ed Cox, said in a statement about the lawsuit, “This ‘climate’ law forces an outrageous $75 billion in new fees, which will ultimately be paid by consumers and businesses, driving more productive citizens and businesses from our state. From skyrocketing gas prices to higher heating bills, New Yorkers are already stretched thin, and now Hochul’s new ‘green’ agenda threatens to push them over the edge.
“The plaintiffs are right to call this law illegal and misguided: it’s a reckless overreach that prioritizes ideology over the economic well-being of our citizens. Under Kathy Hochul, New York continues to hemorrhage affordability, chasing away jobs and residents with every new burdensome tax and regulation,” Mr. Cox said.
Kathy Hochul is trying to impose $75 BILLION in new energy fees. The good news? A coalition of businesses and trade groups is SUING to stop her. Here’s our statement: pic.twitter.com/r95YPggsaU
— New York GOP (@NewYorkGOP) March 3, 2025
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