'They helped keep the lights on': 22 states sue New York for its Big Oil-financed climate fund
A new law has been enforced in New York which requires a group of major energy producers to pay $75 billion (€72 bn) into a fund to cover climate change damage.
22 US states filed a lawsuit on Thursday contending that the new law is unconstitutional.
While the complainants say this could lead America into an energy crisis, New York spokesperson argue it will help the state's climate resilience plans - and the entire nation to transition away from fossil fuels.
The climate fund is to make fossil fuels company pay for historic GHG emissions
New York state developed a Climate Change Superfund Act, which requires payments of $75 billion (€72 bn) for damage allegedly done by energy companies from 2000 to 2018.
The new law requires major fossil fuel companies to pay into the damages fund over the next 25 years, based on their historic greenhouse gas emissions.
However West Virginia Attorney General JB McCuskey is leading a coalition of 22 states against the fund.
The lawsuit says the state law is 'an ugly example of the chaos that can result when States overreach' and highlights that coal, oil, and natural gas were once fundamental to New York.
"They helped keep the lights on in Albany, manufacture the steel that supported New York City's iconic skyscrapers, and fuel the industry that keeps New York ports humming,' the lawsuit further says.
McCuskey said in statement that he was "proud" to lead the coalition it what he alleges is an "unconstitutional" law.
"This lawsuit is to ensure that these misguided policies, being forced from one state onto the entire nation, will not lead America into the doldrums of an energy crisis, allowing China, India and Russia to overtake our energy independence,' McCuskey said.
"If we allow New York to get away with this, it will only be a matter of time before other states follow suit – wrecking our nation's power grid.'
The other named states are Alabama, Arkansas, Georgia, Idaho, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, and Wyoming.
The New York law could set an example in other states to "defeat Big Oil"
The lawsuit accuses New York state of trying to force energy producers and consumers in other states 'to subsidise certain New York-based ' infrastructure ' projects, such as a new sewer system in New York City.'
The current sewage system is described by experts as "archaic" and not fit to cope with increasing climate-related storm surges and extreme rainfall.
Last September, state highways and one of the subway lines flooded when the remnants of storm Ophelia blew through the city, according to Inside Climate News.
The state that put forward the law believes that the environmental fund is an important part of its climate resilience and energy transition and is prepared to fight.
In 2021, New York City launched the largest urban climate resiliency project in America. Experts fear that rising sea levels by 2050 could put some of New York underwater, particularly the island of Manhattan.
'We look forward to defending this landmark legislation in court and defeating Big Oil once again,' Paul DeMichele, a spokesperson for Democratic New York governor, Kathy Hochul's office, says.
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