BCW Joins with Business Groups Statewide Urging Veto of “Climate Superfund” Bill

The Business Council of Westchester is among 35 business organizations statewide urging Gov. Hochul to veto legislation passed by the Senate and Assembly known as the “climate superfund” because it would result in unintended consequences and increased costs for households and businesses.

The business groups contend that the bill discriminates by targeting only the largest fossil fuel extraction and processing firms, including petroleum, natural gas and coal. “Applying ‘strict liability’ to a narrow category of businesses is an unfair approach that fails to consider the complexity of the issue.”

The groups argue that the legislation ignores the near universal use and benefits associated with fossil fuel. “Furthermore, New York State recognized the vital need for adequate fuel supplies and not long ago created the FUEL NY Initiative establishing a strategic fuel reserve “to maintain public safety, commerce and the well-being and economic vitality of its residents, businesses and governments.”

The group points out that the state government is proposing to penalize the very same suppliers of gasoline, natural gas, and other fossil fuel-based products. “In most situations during the bill’s applicability period, no alternatives were available to fully serve the electric, heating and transportation needs of the state.”

Importantly, the group explains that the bill does not address the direct cause of carbon emissions: consumption. “By targeting and imposing strict liability only on the extraction and refinement of fossil fuels, the bill disregards the fact that most emissions are generated by the actual use of fossil fuels and not by their refinement or extraction. Imposing a fee on this past activity means is not designed to impact business or consumer behavior, suggesting the main goal of the legislation is to receive funding from the fuels sector,” the business groups note.

According to the business groups, the legislation would have the state impose a $75 billion assessment on the energy sector during a time of heightened concerns of affordability facing households and businesses alike. “While opinions may differ as to how the cost of this legislation may be directly allocated, there is concern that these payments could impact the state’s overall economy and individual households.”

The group states, “The petroleum and natural gas sectors have a proven track record of reliably supplying the energy that heats and cools our homes, gets us to work, and fuels our economy, and will continue to have a significant role supporting New York’s economy even during its planned transition to a low-carbon future. Given the potential legal challenges, costs, and discriminatory nature of the climate superfund, we respectfully request the governor veto this legislation.”

On another energy front, the BCW’s Westchester Clean Energy Action Coalition will focus on helping to build the county’s new renewable energy infrastructure.