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

A New York democratic bill aimed at charging oil and gas companies for pollution could result in regressive costs for working families in the state, energy and economic experts tell Fox News Digital.

New York Gov. Kathy Hochul recently signed the Climate Change Superfund Act, a bill that seeks to charge polluters up to $75 billion for pollution dating from 2000 to 2018. The money will reportedly be used to fund projects rebuilding infrastructure damaged by weather over the years.

While the bill seeks to fine large corporations, some economists say that such actions will result in higher prices for some New Yorkers.

"It’s heartwarming to see Governor Hochul finally acknowledge what energy advocates have long understood: the best way for humanity to thrive is through adaptation to a changing climate. By signing this bill, she’s effectively endorsed that philosophy—though in the most counterproductive way possible," Jason Isaac, CEO and founder of The American Energy Institute, said in a statement shared with Fox News Digital. 

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"Instead of incentivizing innovation, this legislation piles billions in new costs onto energy producers, punishing the very industry that keeps the light and heat on for New Yorkers," Isaac continued. "The real tragedy here isn’t just the higher energy costs for working families; it’s watching businesses and residents flee a state that refuses to adapt its own bloated policies to economic reality."

"The result will be higher energy costs for households, families, and small businesses in one of the most expensive states to live in the country," Trisha Curtis, economist at the American Energy Institute, said. "With no plan to address the broader economic consequences, this law will drive people, businesses, and state revenue out of New York and into other more competitive states."

O.H. Skinner is the executive director of the Alliance for Consumers, a Phoenix-based nonprofit committed to ensuring consumer protection efforts, class action lawsuits, and attorney general enforcement actions are consistent with the rule of law. He is also a member of the Washington, D.C.-based Federalist Society. 

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Skinner called the bill "the latest attempt by left-wing politicians in New York to drive reliable energy production out of existence and force everyone to abide by their preferred Progressive Lifestyle Choices."

"This policy will do nothing except raise energy prices for hardworking Americans and decrease our standard of living, while progressive elites pat themselves on the back for punishing disfavored industries," Skinner told Fox.

"Whether it's charging citizens to drive into their own city, banning new gas appliances, or foisting a massive new tax bound to significantly raise the price of energy, hardly a day goes by that New York government doesn't implement ESG policies that make their citizens' lives quantifiably worse," said Consumers’ Research Executive Director Will Hild.

Fox News contributor David Webb said that the bill is "going to cost New Yorkers."

"If you're an energy company, you're already guilty. They're just going to decide over the next decade how they're going to charge you for your guilt," Webb told "Fox & Friends First," calling Hochul a "far left governor" that is "bound to this ideology."

However, proponents praised the legislation for requiring companies to pay for fossil fuel pollution in the state.

"By signing the Climate Change Superfund Act, Gov. Hochul is addressing the financial burden placed on New Yorkers by the fossil fuel companies," said Richard Schrader, Director of New York Government Affairs at Natural Resources Defense Council, a nonprofit environmental organization. "It’s a key example of what putting fiscal fairness and environmental justice front and center looks like."

In total, 38 firms reportedly deemed carbon polluters will be on the hook, such as American oil giants Exxon and Chevron, as well as the UK's Shell and BP.

Vermont remains the only other state to adopt similar pieces of legislation.

The bill comes just weeks after Hochul rolled out a plan to offer payments of up to $840 to New York residents who switch out their washing machines for a green alternative.