ALBANY, NY | Fiscal Policy Institute Director Nathan Gusdorf today released the following statement about the Climate Change Superfund Act, which was signed into law by Governor Hochul this morning:

“The Fiscal Policy Institute applauds Governor Hochul’s decision to sign the Climate Change Superfund Act, a measure recently passed by the Senate and Assembly that will raise $75 billion for climate change adaptation over the next 25 years by imposing fees on the largest polluters in the world. Adapting to the challenges of climate change in New York State will require hundreds of billions of dollars in infrastructure investment—upgrading our sewers and roads to be resilient in the face of storms and flooding, building a sea barrier for New York City, ensuring the supply of clean water, and preventing energy disruptions, among others. The Superfund will make a substantial contribution to these investment needs without imposing higher costs on New Yorkers.

“FPI’s analysis of this legislation found that only 30 to 40 firms will be affected, among them US companies such as ExxonMobil and foreign companies such as Saudi Aramco and BP. The 8 largest fossil fuel companies earned nearly $400 billion in profits in 2022 alone—indicating that the $3 billion in total annual fees imposed by the Superfund would be less than 1% of industry profits in some years. Further, FPI’s analysis found that because these fees are based on past behavior, and imposed at different levels for different market participants, they will not be passed on to consumers in the form of higher energy prices.

“The Superfund is a fiscally sound mechanism for upgrading our statewide infrastructure in the face of urgent climate challenges, and FPI commends the governor and legislature for successfully working together to enact it.”