NY Considers Billions in Fees for Oil Companies

Governor Kathy Hochul is poised to make a decision on a contentious bill that would require oil, natural gas, and coal companies to pay billions to New York State for their role in climate change. The legislation, which has passed both the Assembly and Senate, faces criticism for being impractical and potentially costly for consumers. Opponents argue that if enacted, the bill could lead to prolonged legal battles and ultimately burden customers with higher prices. Among the companies targeted by the bill is Saudi Aramco, which could face the largest annual fee of $640 million for its significant greenhouse gas emissions from 2000 to 2020. The legislation identifies 38 major carbon polluters, including prominent American companies like Exxon and Chevron, as well as international firms such as Shell, BP, and Total Energies. Critics, including former state Public Service Commission Chairman John Howard, question the feasibility of collecting fees from foreign-owned companies and express concerns that these firms may simply pass the costs onto consumers. The bill's implications for businesses operating in New York have raised alarms among industry leaders. Critics argue that it sends a negative message to companies, suggesting that compliance with existing regulations may not shield them from additional penalties imposed by the state. Lawmakers like Dinowitz echo these sentiments, emphasizing the potential deterrent effect on businesses considering operations in New York. As the governor weighs her options, the future of this legislation remains uncertain, with significant implications for both the state's climate initiatives and its business environment.