Add Art 76 §§76-0101 - 76-0105, En Con L; add §97-m, St Fin L
Establishes the climate change adaptation cost recovery program to require companies that have contributed significantly to the buildup of climate-warming greenhouse gases in the atmosphere to bear a share of the costs of needed infrastructure investments to adapt to climate change; mandates that projects funded by the program require compliance with prevailing wage requirements; requires that contracts for funded projects contain a provision that the structural iron and structural steel used or supplied in the performance of the contract or any subcontract thereto shall be produced or made in whole or substantial part in the United States, its territories or possessions; makes additional provisions; establishes the climate change adaptation fund.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3351B
SPONSOR: Dinowitz TITLE OF BILL:
An act to amend the environmental conservation law, in relation to
establishing the climate change adaptation cost recovery program; and to
amend the state finance law, in relation to establishing the climate
change adaptation fund
PURPOSE:
The purpose of the bill is to establish the climate change adaptation
cost recovery program, which would require companies that have contrib-
uted significantly to the buildup of greenhous'e gases, the primary
cause of climate change, to bear a share of the costs of infrastructure
investments required to adapt to the impacts of climate change in New
York State.
SUMMARY OF PROVISIONS:
Section 1: Names the bill the Climate Change Superfund Act. Section 2:
Legislative findings.
Section 3: Creates a new article 76 in the environmental conservation
law to create the climate change adaptation cost recovery program:
§ 76-101: Definitions § 76-103:
1. Establishes the climate change adaptation cost recovery program.
2. Outlines the purposes and structure of the program. 3, Details the
method for calculating the cost recovery demand amount for each fossil
fuel company found to be a responsible party.
4. Requires DEC to promulgate regulations to implement the program,
including the identification of responsible parties, the procedures for
issuing notices of cost recovery demands and collecting payment on those
demands, and procedures for identifying projects that would qualify as
climate change adaptive infrastructure projects, as well as a require-
ment to. hold at least two public hearings on the proposed regulations.
5. Requires DEC, within two years, to complete a Statewide Climate
Change Adaptation Master Plan for the purpose of guiding the dispersal
of funds in a timely, efficient, and equitable manner to all regions of
the state.
6. Authorizes DEC, the Department of Taxation and Finance, and the
attorney general to enforce the provisions of the article.
7. Entitles a fossil fuel company designated as a responsible party an
opportunity to contest a proposed action under this statute consistent
with due process requirements of the U.S. Constitution.
8. Requires monies received to be deposited in the climate change adap-
tation fund.
9. Requires DEC to conduct an independent evaluation of the program.
§ 76-105:
1. Requires public entities to assess and implement -strategies to
increase employment opportunities and improve job quality when imple-
menting projects funded through the program. Further requires the gover-
nor to publish a report within one hundred and twenty days on steps that
will be taken to ensure compliance the department or office or both
which are charged with implementation, regulations necessary to ensure
prioritization of the statewide goal of creating good jobs and increas-
ing employment opportunities, and steps that will be taken with all
public entities to implement a system to track compliance, accept
reports of non-compliance for enforcement action, and report annually on
the adoption of these standards to the legislature beginning one year
from the effective date of this section.
2. Defines public entity.
3. Requires projects funded through the program to comply with prevail-
ing wage requirements, and adds additional requirements for certain
projects, including project labor agreements, labor harmony policies, US
manufacturing requirements, apprenticeship agreements, and the preserva-
tion of worker rights and benefits and civil service protection and
collective bargaining status.
4. Requires applicant, bidders, and responders for contracts for renewa-
ble energy projects, energy efficiency projects, and other projects
funded by the program, except for construction projects, to submit a New
York jobs plan consisting of jobs that would result from being awarded
the bid or contract and requires information for nonsupervisory posi-
tions. Subcontractors would also be• subject to the plan. Further
requires DEC and the Department of Labor to develop a web-based portal
to track the plan commitments and compliance.
5. Nothing set forth in this section shall be construed to impede,
infringe, or diminish the rights and benefits which accrue to employees
through bona fide collective bargaining agreements, or otherwise dimin-
ish the integrity of the existing collective bargaining relationship.
6. Nothing set forth in this section shall preclude a public entity from
setting additional requirements or standards in addition to those set
forth in this article.
Section 4: Creates a new section 97-m within the state finance law
establishing the climate change adaptation fund in the custody of the
comptroller and the commissioner of taxation and finance, to receive
monies through cost recovery demands and issue funds for qualifying
expenditures of the climate change adaptation cost recovery program.
Section 5: Nothing in this act shall preclude the pursuit of civil
action or other remedy by any person.
Section 6: Severability.
Section 7: Liberal construction. Section 8: Effective date.
JUSTIFICATION:
Climate change, resulting primarily from the combustion of fossil fuels,
is an immediate, grave threat to New York's communities, environment,
and economy. In addition to mitigating the further buildup of greenhouse
gases, the State must take action to adapt to certain consequences of
climate change that are irreversible, including rising sea levels,
increasing temperatures, extreme weather events, flooding, heat waves,
toxic algae blooms and other climate change-driven threats. Maintaining
.New York's quality of life into the future, particularly for young
people, who will experience greater impacts from climate change over
their lifetimes, will be one of the State's greatest challenges over the
next three decades. Meeting that challenge will require a shared
commitment of purpose and huge investments in new or upgraded infras-
tructure.
New York has previously adopted programs now in place - the inactive
hazardous waste disposal site program (also known as the state superfund
program) and the oil spill fund - to remediate environmental damage to
lands and waters based on the principle that, where possible, the enti-
ties responsible for environmental damage should pay for its clean up.
No similar program exists yet for the pollution of the atmosphere by
greenhouse gas buildup as a result of burning fossil fuels.
Based on decades of research it is now possible to determine with great
accuracy the share of carbon dioxide released into the atmosphere by
specific fossil fuel companies over the last 70 years or more, making it
possible to assign liability to and require compensation from companies
commensurate with their emission of carbon dioxide into the atmosphere
during a given time period.
This bill would establish a Climate Change Adaptation Cost Recovery
Program that will require companies that have contributed significantly
to the buildup of greenhouse gases in the atmosphere to bear a propor-
tionate share of the cost of infrastructure investments required to
adapt to the impacts of climate change in New York State. The obli-
gation to pay under the program is based on fossil fuel companies'
historic contribution to the buildup of greenhouse gases. The program
operates under a standard of strict liability; companies are required to
pay into the fund because the use of their products caused the
pollution. No finding of wrongdoing is required.
Nonetheless, it is important to recognize that the actions of many of
the biggest fossil fuel companies have been unconscionable, closely
reflecting the strategy of denial, deflection, and delay perfected by
the tobacco industry. In spite of the information provided by their own
scientists that the continued burning of fossil fuels would have
catastrophic results, these companies hid the truth from the public and
actively spread false information that the science of. climate change
was uncertain when in fact it was beyond controversy. This breach of the
public trust was breathtaking in its scope and consequences, and it
continues to this day. For example, while claiming a commitment to
renewable energy, Chevron invested only 2%. and ExxonMobil only 1.6% of
their total capital investments in low-carbon sources.
In 2022, the fossil fuel industry has taken advantage of several over-
lapping global crises to earn immense profits (Chevron and ExxonMobil
had combined profits for the first quarter of 2022 of over $11.8
billion), charging incredibly high prices while aggressively rejecting
any responsibility for the costs of its business activities. While all
the profits accrue to the companies, all the costs of climate change are
paid by taxpayers. This is a market failure that needs to be addressed
through policy change.
The Climate Change Adaptation Cost Recovery Program is remedial in
nature, seeking compensation for damages resulting from the past actions
of polluters. Payments by historical polluters into the Program would be
used for new or upgraded infrastructure needs such as coastal wetlands
restoration, storm water drainage system upgrades, and energy efficient
cooling systems in public and private buildings, including schools and
public housing, all of which are necessary to protect the public safety
and welfare in the face of the growing impacts of climate change. Disad-
vantaged communities would receive at least 35%, with a goal of at least
40%, of the overall benefits of Program spending.
LEGISLATIVE HISTORY:
2021-22: A.10556/5.9417 - Environmental Conservation / Environmental
Conservation
FISCAL IMPACT ON THE STATE:
Potential to collect up to $75 billion over 25 years for climate change
adaptive infrastructure projects in the state.
EFFECTIVE DATE:
This act shall take effect immediately.
