Hochul’s polluters pay bill could result in regressive costs for working families: economists

A new bill in New York aimed at charging oil and gas companies for pollution could have unintended consequences for working families in the state, according to energy and economic experts.

Governor Kathy Hochul recently signed the Climate Change Superfund Act, which will hold polluters accountable for up to $75 billion in pollution dating back to 2000. The funds collected will be used to finance projects that aim to rebuild infrastructure damaged by extreme weather events over the years.

While the bill targets large corporations, some economists believe that it will ultimately result in higher prices for consumers. Jason Isaac, CEO and founder of The American Energy Institute, expressed concern about the bill’s impact on energy producers and working families. He argued that the legislation will lead to higher energy costs and potentially drive businesses and residents out of the state.

Trisha Curtis, an economist at the American Energy Institute, echoed these concerns, warning that the bill will lead to higher energy costs for households, families, and small businesses in an already expensive state. She noted that without a plan to address the broader economic consequences, the law could drive people, businesses, and state revenue out of New York.

O.H. Skinner, the executive director of the Alliance for Consumers, criticized the bill as an attempt by left-wing politicians to eliminate reliable energy production and impose their progressive agenda on the public. He argued that the policy will only serve to raise energy prices and decrease the standard of living for hardworking Americans.

Consumers’ Research Executive Director Will Hild also criticized the bill, highlighting a pattern of policies in New York that negatively impact residents’ lives. He pointed to recent initiatives like charging citizens to drive into the city and banning new gas appliances as examples of policies that make life harder for New Yorkers.

On the other hand, proponents of the bill praised it for holding fossil fuel companies accountable for their pollution. Richard Schrader, Director of New York Government Affairs at the Natural Resources Defense Council, commended Governor Hochul for addressing the financial burden placed on New Yorkers by these companies. He described the legislation as a step towards fiscal fairness and environmental justice.

In total, 38 firms identified as carbon polluters will be affected by the bill, including major oil companies like Exxon, Chevron, Shell, and BP. Vermont is the only other state to have adopted similar legislation.

The bill comes on the heels of Governor Hochul’s plan to offer payments of up to $840 to residents who switch to green washing machines. Critics argue that these initiatives, along with the Climate Change Superfund Act, will ultimately result in higher costs for New Yorkers.