Gov. Hochul signs Climate Change Superfund Act, opening potential new funding source for resiliency and adaptation projects

On December 26, 2024, New York Governor Kathy Hochul signed the second-in-the-nation Climate Change Superfund Act (S.2129-B/A.3351-B), following Vermont in making large fossil fuel companies pay to help New York recover from and prepare for the impacts of climate change.

Under a theory of strict liability, the Act requires fossil fuel companies with the largest greenhouse gas emissions from 2000–2018 to offset the damaging effects of their past emissions by paying a proportionate share of $3 billion annually for 25 years into a newly established Climate Change Adaptation Fund. The Fund will support climate adaptation projects, such as coastal wetlands restoration, stormwater drainage system upgrades, energy efficient cooling systems, and programs addressing climate-related public health challenges, and allay recovery costs following extreme weather events. Portions of the Fund will go toward new and upgraded infrastructure, creating a potential new funding source for climate change and resiliency projects like those on which SPR routinely advises clients. The Act requires the New York State Department of Environmental Conservation to promulgate implementing regulations within one year and to issue a Statewide Climate Change Adaptation Master Plan within two years. Read the Governor’s announcement here.