lohud: Albany’s Climate Change Superfund Act chills upstate New York’s economy | Opinion

January 22nd, 2025

Justin Wilcox Special to the USA TODAY Network

Only in Albany would leaders propose penalizing oil and gas companies at the very moment we depend on these products to heat our homes and fuel our snowplows during the harsh winter months. Yet, that’s exactly what Gov. Kathy Hochul did when she signed the Climate Change Superfund Act. Then, even as she championed an affordability agenda in her State of the State address, she doubled down on her support for the bill — a policy that will inevitably increase costs for every family in the state.

The bill, which imposes a hefty $75 billion in surcharges on a handful of fossil fuel producers, aims to hold energy companies fully responsible for global climate change. The premise ignores the reality that the primary source of emissions is the consumption of these fuels, not their production. By targeting American energy producers while lacking a mechanism to address major global emitters like China’s state-run coal operations—which alone account for nearly a quarter of the world’s emissions—this policy will likely be ineffective in significantly reducing environmental impact. Yet, it is certain to lead to higher energy bills for all New Yorkers.

The $252 billion budget proposed by Gov. Kathy Hochul on Jan. 21, 2025, includes a ban on students using cell phones during school, pitched as way to remove learning distractions.
New York state itself relies heavily on these fuels for a full fleet of vehicles that provide essential services, including everything from state police to emergency responders, to the snowplows that clear the Thruway. This contradiction has been called out in court cases on this very subject. Ahead of tossing a lawsuit filed by contingency fee lawyers on behalf of New York City against fossil fuel companies, U.S. District Judge John Keenan of the Southern District of New York pointedly asked if the city itself could claim to be blameless: “The firehouses all have trucks. The Sanitation Department has trucks. If you open the door and go out to Foley Square, you’re going to see five police cars.”

Now, through legislation, hitting energy producers with enormous financial penalties is not only ill-advised but also dangerously shortsighted. As frigid temperatures and heavy snows blanket the regions upstate, natural gas, oil, and propane are necessary for survival. For years, the state and local governments have indirectly supported the energy industry through various subsidies. Abruptly penalizing these companies without due process under the guise of environmental protection undermines affordable access to the essential products — required for modern life and a functioning economy — they provide.

With this measure, Hochul and lawmakers in Albany show that they fundamentally misunderstand the scope of the state’s powers. The effort to regulate global carbon emissions through state-level legislation overlooks the reality that the correct venue for these deliberations is through international treaties and federal policies. The Clean Air Act gives the Environmental Protection Agency authority to regulate emissions, not individual states. Albany’s overreach here not only exceeds its jurisdiction but also sets the stage for policy clashes and potential legal challenges, diverting attention and resources away from feasible and effective climate-related solutions.

Beyond the mechanics of the bill, this proposal sends a chilling signal about New York’s stance towards business and industry — a position likely to exacerbate the ongoing outmigration of companies and residents seeking more favorable economic climates. Extracting what essentially amounts to new taxes from industries that are integral to the economy and to the livelihoods of our communities, as this bill does, is a red flag that New York is becoming ever more hostile toward businesses.

The law’s hasty enactment — without thorough consideration of real-world economic and legal implications — reflects a troubling trend in Albany that prioritizes symbolic victories over substantive solutions. New York should instead be focusing on fine-tuning existing environmental policies, addressing their shortcomings before imposing new, costly mandates that will make the Empire State even less affordable.

Effective governance requires a nuanced understanding of the interplay between ambitious goals and pragmatic realities. Only through careful consideration and strategic planning can New York hope to lead on environmental protection and climate policy in a way that truly benefits communities throughout the state. This involves crafting regulations that are as grounded and effective as they are visionary. They must ensure that the path toward a cleaner, more sustainable future does not come at the expense of those who call New York home and the energy sources they rely on to stay warm.

Justin Wilcox is executive director of Upstate United, a nonpartisan business and taxpayer advocacy coalition focused on growing and protecting the economic vitality of upstate New York.