New YorkS 8242025-2026 Regular SessionSenate

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

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 4 benefits, 5 costs, 1 mixed.

Climate projects prioritize disadvantaged communities

Recovery money supports climate adaptation infrastructure guided by New York's statewide resilience plan. Eligible work includes flood protection, wastewater upgrades, cooling, weatherization, stronger power grids, and responses to harmful algae. The law directs at least 40% of qualifying spending to projects benefiting legally defined disadvantaged communities. It also states a 35% minimum floor. These are project investments, not direct household checks.

Large fossil fuel companies owe $75 billion

Covered fossil fuel extractors and oil refiners owe a combined $75 billion for New York climate adaptation projects. Coverage requires more than one billion metric tons of emissions and enough New York contacts to meet constitutional requirements. Emissions count worldwide extraction and refining from January 1, 2000, through December 31, 2024. Each company's share reflects its emissions above that threshold compared with all covered companies' combined excess emissions. Related companies under common control count together, and any liable group member can face the group's unpaid demand.

Late company payments trigger steep penalties

Companies that miss required payments owe a penalty of 50% of the unpaid amount, plus interest under federal tax law. Unpaid balances become due upon specified events, including selling nearly all assets, closing the business, or filing for bankruptcy. The asset-sale exception applies when the buyer agrees with the environmental agency to assume all unpaid amounts.

Climate project workers gain wage protections

Covered construction projects receiving at least $100,000 from the adaptation fund must pay prevailing wages, including for building-service work. Owners and developers must meet labor-peace requirements for non-construction workers and use registered apprenticeships where applicable. Without apprenticeship programs, they must use workforce training and consider pre-apprenticeship pathways for local or disadvantaged workers. Exclusions cover qualifying private union-agreement projects, specified small owner-occupied residential projects, and qualifying private affordable or supportive housing projects. Public entities receiving at least $5 million for building or land improvement projects also face Labor Law procurement and project requirements.

Residents get input on climate planning

New York's environmental agency must issue program regulations within 30 months of the article's effective date. It must publish a statewide resilience plan within 18 months after final regulations and update it at least every three years. The plan identifies needs, projects, funding sources, and selection criteria, and encourages nature-based tidal shoreline protection. Drafts require 60 days' public notice, an in-person hearing, a virtual hearing, and analysis of comments and resulting changes. Participation must reach all regions, including disadvantaged communities, and project applications and guidelines must be posted online. An independent evaluation is due January 1 of the second calendar year after enactment, then annually by September 30. Evaluations track demands, collections, spending, disadvantaged-community funding, project progress and locations, and future funding needs.

Companies get payment and review options

Full payment is due December 31 of the fourth calendar year after enactment, unless an approved alternative applies. The environmental agency may approve paying no more than 92% of a demand over up to 24 years afterward. Payments start the following year, occur at least annually, and cannot increase over time. Companies can request reconsideration within 60 days after U.S. service or 90 days after service abroad, with reasons and documents. Companies must exhaust administrative review; final notices issued after the payment deadline make payment due 30 days after final issuance.

Funded projects must use domestic steel

Covered public-entity contracts using adaptation fund money must require domestic iron and steel, including in subcontracts. The rule also covers third parties acting for public entities. Covered materials must be made wholly or substantially in the United States, its territories, or possessions. Iron and steel manufacturing must occur domestically from initial melting through coating, except for processes refining steel additives.

State can demand company emissions records

New York's environmental agency can require historical production, extraction, refining, emissions, and related records to determine company liability. It can use consistent emissions factors and information from the state tax agency. The tax agency can share petroleum and fossil fuel business return data with environmental and energy agencies for program implementation. This sharing authority does not allow disclosure of taxpayer identities.

Separate climate worker standards are repealed

The law repeals a separate Environmental Conservation Law section covering labor standards and worker protections for climate adaptation projects. The supplied text does not identify that section's specific protections or affected workers. The repeal alone therefore does not establish how any worker's pay or protections change.

Climate funding gains flexibility and limits

After legislative approval, the adaptation fund can cover qualifying project costs, including operation and upkeep. Reasonable state administrative and direct implementation costs must support projects and cannot exceed 1% of fund receipts. Transfers to other funds need legislative approval or authorization and must directly relate to adaptation projects. Spending approvals must list amounts by project type, but agencies can shift those amounts without exceeding the approved total.

Sponsors & Cosponsors

Sponsor

Liz Krueger
Democratic • Senate

Cosponsors

Robert Jackson
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 146 • No: 79

House vote • 2/24/2025

Assembly floor vote

Yes: 97 • No: 48

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

SIGNED CHAP.100
2/28/2025Senate
DELIVERED TO GOVERNOR
2/28/2025Senate
RETURNED TO SENATE
2/24/2025House
PASSED ASSEMBLY
2/24/2025House
ORDERED TO THIRD READING RULES CAL.51
1/28/2025House
SUBSTITUTED FOR A1474
1/28/2025House
REFERRED TO CODES
1/22/2025House
DELIVERED TO ASSEMBLY
1/22/2025Senate
PASSED SENATE
1/22/2025Senate
ORDERED TO THIRD READING CAL.98
1/13/2025Senate
REFERRED TO RULES
1/8/2025Senate

Bill Text

Original
1/6/2025
PDF

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