New York 'polluters pay' law backcharging oil, gas companies faces Republican AGs' lawsuit: 'Devastating'
2025-02-07
Category: political

FIRST ON FOX: In one of his first major moves, newly-elected West Virginia Attorney General J.B. McCuskey is suing New York over the state's new "devastating" law that retroactively charges energy companies billions of dollars for pollution from 2000 to 2018.&nbsp; "This bill is an attempt by New York to step into the shoes of the federal government to regulate something that they have absolutely no business regulating, and we are more than happy to step in and tell the rest of the country, along with our incredible other state partners, that this is unconstitutional, and it won't stand," McCuskey told Fox News Digital in an interview.&nbsp; The lawsuit alleges the law signed by Gov. Kathy Hochul, known as the Climate Change Superfund Act, unfairly targets traditional energy producers — regardless of whether they operate in New York — by imposing massive financial liabilities.&nbsp; "These energy choices—and the benefits that come with them—entail necessary tradeoffs. All energy use, including energy deriving from 'renewable' sources, creates some pollution," the 59-page lawsuit reads. "Traditional energy is no different." HOCHUL SIGNS BILL THAT WILL CHARGE OIL AND GAS FIRMS $75B, BUT CRITICS SAY CUSTOMERS WILL REALLY FOOT THE TAB  According to the complaint, the burden of these costs would not fall on New York consumers, but will instead be forced onto producers and consumers in other states. The suit also alleges that New York is using these funds to subsidize its own infrastructure projects, such as a new sewer system in New York City that has been damaged by extreme weather events. The lawsuit, filed in the U.S. District Court for the Northern District of New York Albany Division, cites New York AG Letitia James, Sean Mahar, the Interim Commissioner of the New York State Department of Environmental Conservation and Amanda Hiller, the acting tax commissioner of the New York State Department of Taxation and Finance. "When you live in the real world, like I do, and you live in a place like West Virginia, where the values of the people indicate that we pay our bills, we're humble, we're modest, and we're respectful of the people around us," McCuskey said. "These kind of things hit us a lot harder. And so, you know, this is really a fight between the elites and the people that make this country run on the back end." Attorneys general for Alabama, Arkansas, Georgia, Idaho, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, Texas, Utah and Wyoming also joined the lawsuit. The West Virginia Coal Association, the Gas and Oil Association of West Virginia and Alpha Metallurgical Resources, Inc., are also joining the complaint. The bill, first introduced under the Biden administration, this "landmark legislation shifts the cost of climate adaptation from everyday New Yorkers to the fossil fuel companies most responsible for the pollution," according to the governor's December 2024 press release. TRUMP EXECUTIVE ORDER FORCES NEW JERSEY TO CANCEL ITS FIRST OFFSHORE WIND FARM  "By ensuring those responsible for historic climate-altering emissions bear the costs of the significant health, environmental, and economic impacts already being passed on to New Yorkers, this law will complement the State’s efforts to reduce greenhouse gas emissions, help communities adapt to the climate-driven impacts experienced today, and leverage the significant investments the Governor is making in climate resilience," Mahar, the state's Environmental Conservation interim commissioner said in the press release.&nbsp; The law mandates that fossil fuel companies collectively contribute $75 billion over the next 25 years into a dedicated "superfund" that would then help rebuild climate change-induced infrastructure damage.&nbsp; "This liability could be devastating to traditional energy producers," the lawsuit states. "Indeed, the ruinous liability that the Act promises—especially when paired with similar efforts that might arise in other States—could force coal, oil, and natural gas producers to shutter altogether." FORMER TRUMP CABINET MEMBERS LAUNCH GROUP TO PROMOTE PRESIDENT'S ENERGY AGENDA  In total, 38 firms – including American oil giants Exxon and Chevron, the UK's Shell and BP, and Brazil's Petrobras – categorized as "carbon polluters" could be on the receiving end of hefty bills, Fox News Digital previously reported.&nbsp; New York’s effort to hold energy producers accountable comes at a time when the Trump administration is moving in the opposite direction, rolling back climate commitments through a recent executive order. CLICK HERE TO GET THE FOX NEWS APP Trump signed two executive orders last month dramatically reshaping U.S. energy and environmental policy from the Biden administration's priorities. The "Unleashing American Energy" order aims to boost domestic fossil fuel production by cutting regulations and expediting permits for oil, gas, and coal projects. Meanwhile, "Putting America First in International Environmental Agreements" withdraws the U.S. from global climate commitments, including the Paris Agreement, and halts funding for international climate initiatives. This is the second time under a Trump presidency that the U.S. has exited the Paris Agreement.&nbsp; "Governor Hochul proudly signed the Climate Superfund Act because she believes corporate polluters should pay for the wreckage caused by the climate crisis—not everyday New Yorkers. We look forward to defending this landmark legislation in court and defeating Big Oil once again," Paul DeMichele, deputy communications director of New York's Energy &amp; Environment Department told Fox News Digital in a statement. Fox News Digital has also reached out to the New York attorney general's and acting tax commissioner's offices for comment.