Saturday, 11 Jan 2025

Hochul signs bill that will charge oil and gas firms $75B, but critics say customers will really foot the tab

New York Governor Kathy Hochul signed legislation that will issue assessments to energy firms operating in New York; funds will be used for climate mitigation.


Hochul signs bill that will charge oil and gas firms $75B, but critics say customers will really foot the tab
1.0 k views

While environmental groups heralded the legislation, business groups argued that it will increase the cost of doing business in the state and that consumers will ultimately bear the brunt in terms of higher energy prices.

However, critics have deemed the bill impractical and contend that it will be subject to protracted legal challenges.

"What would you have them do? Not sell fuel in New York State," said Ken Pokalsky, vice president of the New York State Business Council. 

A group of business and industry leaders also lambasted the measure: "This legislation is bad public policy that raises significant implementation questions and constitutional concerns. Moreover, its $75 billion price tag will result in unintended consequences and increased costs for households and businesses."

However, Gov. Hochul heralded the legislation as a victory for the state's citizens, stating that the funds will be used for climate mitigation efforts.

Russia's Lukoil will likely face charges of around $100 million per year.

The assessments are based on estimated yearly CO2 emissions, measured in millions of tons of greenhouse gases.

In total, 38 firms deemed carbon polluters will be on the hook, including American oil giants Exxon and Chevron, the UK's Shell and BP, and Brazil's Petrobras.

Critics of the legislation have also noted the potential difficulty in collecting the stipulated assessments from foreign firms.

The bill is also concerning consumer advocacy groups in light of its implementation in conjunction with other new measures which stand to greatly affect commuters and consumers:

"We also note this measure would come on the heels of the reinstatement of congestion pricing in New York City, and in advance of the Environmental Department's pending `cap and invest' rule, which combined will also impose billions of dollars in new assessments on fossil fuel usage, impacting a wide range of consumers," stated bill opponents.

you may also like

'Opposite of a seat squatter': Flight passenger shares unexpected encounter with fellow traveler
  • by foxnews
  • descember 09, 2016
'Opposite of a seat squatter': Flight passenger shares unexpected encounter with fellow traveler

A social media user is sharing her in-flight encounter with a passenger who was an "opposite" tale from the viral "seat squatter" stories. An etiquette expert weighs in.

read more