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New YorkS 8242025-2026 Regular SessionSenateWALLET

Relates to the climate change adaptation cost recovery program and requirements for climate change adaptive infrastructure projects

Sponsored By: Liz Krueger (Democratic)

Became Law

RULESCODES

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 0 costs, 3 mixed.

State recovers $75B from major fossil firms

The law makes major fossil fuel extractors and refiners with over 1 billion metric tons of covered emissions from 2000–2024 pay a share of a $75 billion statewide cost recovery. Liability is strict. The Department uses worldwide extraction and refining data, treats affiliates as one group, and allocates each party’s share based on emissions above the 1‑billion‑ton floor. The Department must send notices by June 30 of the fourth year after the law takes effect; the payment date is December 30 of that year. Parties have 60 days to seek reconsideration if served in the U.S. (90 days if served outside). Late payments owe a 50% penalty plus interest, and unpaid balances can accelerate on sale, closure, or bankruptcy. A party may choose installments after the payment date and pay no more than 92% over up to 24 years, with at least yearly, non‑increasing payments. The Department can demand data, use tax records, and adopt uniform factors; it must finalize rules within 30 months. The act repeals the prior program and replaces it with this updated framework.

Which projects qualify and who benefits

The law defines which adaptation projects can get money, like wetland restoration, stormwater and wastewater upgrades, energy efficiency, and grid resilience, guided by the statewide plan. At least 40% of qualified spending, with a hard floor of 35%, must benefit disadvantaged communities. The Department must hold at least two public hearings on proposed rules (one in‑person, one virtual) with at least 30 days’ public notice.

Climate Adaptation Fund spending rules

The law creates a Climate Change Adaptation Fund to hold these payments and finance eligible projects. All spending needs a legislative appropriation and Comptroller audit and warrant. Admin and implementation costs from the fund are capped at 1% of receipts. Budgets show amounts by project type, but money can be moved within an appropriation. The Comptroller may secure deposits and invest fund revenues under existing authority.

Higher wages and training on funded projects

A project is covered if it gets $100,000 or more from the state climate funds. Covered projects must pay prevailing wages, use apprenticeships or workforce training, and, when non‑construction staff are or seek to be represented, sign a labor peace agreement. Public entity projects that receive $5 million or more must follow added wage rules. Some private work is excluded, like a homeowner’s one‑ or two‑family home, work under certain pre‑hire union deals, and some private multi‑unit housing unless it meets affordability or supportive‑housing targets.

Use U.S.-made iron and steel

Projects paid for with the Adaptation Fund must use iron and steel made in the United States. For iron and steel products, all manufacturing from the first melt through coatings must occur in the U.S., with a narrow exception for refining steel additives.

Sponsors & Cosponsors

Sponsor

  • Liz Krueger

    Democratic • Senate

Cosponsors

  • Robert Jackson

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 49 • No: 31

Senate vote • 1/22/2025

FLOOR Vote

Yes: 35 • No: 24

committee vote • 1/13/2025

Rules Committee Vote

Yes: 14 • No: 7

Actions Timeline

  1. SIGNED CHAP.100

    2/28/2025Senate

  2. DELIVERED TO GOVERNOR

    2/28/2025Senate

  3. RETURNED TO SENATE

    2/24/2025House

  4. PASSED ASSEMBLY

    2/24/2025House

  5. ORDERED TO THIRD READING RULES CAL.51

    1/28/2025House

  6. SUBSTITUTED FOR A1474

    1/28/2025House

  7. REFERRED TO CODES

    1/22/2025House

  8. DELIVERED TO ASSEMBLY

    1/22/2025Senate

  9. PASSED SENATE

    1/22/2025Senate

  10. ORDERED TO THIRD READING CAL.98

    1/13/2025Senate

  11. REFERRED TO RULES

    1/8/2025Senate

Bill Text

  • Original

    1/6/2025

    PDF

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