Bill Text: NY A04056 | 2023-2024 | General Assembly | Amended


Bill Title: Creates climate liability for fossil fuel related activity which caused or contributed to climate change; creates a right of action.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced) 2024-01-11 - print number 4056a [A04056 Detail]

Download: New_York-2023-A04056-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         4056--A

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    February 9, 2023
                                       ___________

        Introduced  by  M.  of  A.  SOLAGES, GALLAGHER, EPSTEIN, RAGA, SHRESTHA,
          DE LOS SANTOS -- read once and referred to the Committee  on  Environ-
          mental  Conservation  -- recommitted to the Committee on Environmental
          Conservation in accordance with Assembly Rule 3, sec. 2  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee

        AN  ACT  to  amend  the  general  business  law, in relation to creating
          climate liability for dangers to safety and health caused  by  certain
          fossil fuel related activities

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The legislature finds that the consequences of  a  changing
     2  climate  directly  impact  New York state. Around the world thousands of
     3  scientific studies have documented changes  in  air  and  water  temper-
     4  atures,  melting  glaciers,  diminishing  snow cover, shrinking sea ice,
     5  rising sea levels, ocean acidification, and increasing atmospheric water
     6  vapor.   Warming trends  and  incidences  of  intense  heat  waves  will
     7  contribute  to  greater  localized  heat stresses; heavy rainfall events
     8  that  exacerbate  localized  flooding  will  continue  to  impact   food
     9  production,  natural ecosystems, and water resources; and sea-level rise
    10  will increasingly threaten sensitive coastal communities and ecosystems.
    11  Climate change is adversely affecting New  York's  economic  well-being,
    12  public health, natural resources, and environment.
    13    To   achieve  the  goals  of  the  Climate  Leadership  and  Community
    14  Protection Act (hereinafter the "Climate Act") that include 70%  renewa-
    15  ble  electricity  by 2030, 100% zero-emission electricity by 2040, a 40%
    16  reduction in statewide GHG emissions from 1990 levels by  2030,  an  85%
    17  reduction  in  statewide GHG emissions from 1990 levels by 2050, and net
    18  zero emissions statewide by 2050, the  New  York  State  Climate  Action
    19  Council  (the  "Council") determined in its Scoping Plan for the Climate
    20  Act that "[i]t is imperative that New  York  take  immediate  action  to

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01983-03-4

        A. 4056--A                          2

     1  aggressively  reduce GHG emissions as well as invest in resiliency meas-
     2  ures." Although the plan is not  authoritative  on  the  full  scope  of
     3  damage,  the cost of not taking immediate and aggressive action, accord-
     4  ing to the Council, is approximately $115 billion dollars.
     5    The  public health impacts of GHG and co-pollutant emissions are simi-
     6  larly devastating. Increased heat  stress  (such  as  heat  edema,  heat
     7  stroke, heat cramps, heat stress, and dehydration) and other heat-relat-
     8  ed  morbidity  and  mortality;  exacerbation  of  respiratory conditions
     9  (including pneumonia, asthma, and chronic obstructive pulmonary disease)
    10  and cardiovascular disease; increased duration and severity  of  allergy
    11  symptoms  due  to  increased  duration  and  intensity of pollen season;
    12  increased risk for vector-borne diseases (such  as  Lyme  disease,  West
    13  Nile  virus,  and  other  pathogens); increased risk of injury and death
    14  following extreme precipitation events  and  flooding  (or,  conversely,
    15  after  droughts);  rising  sea  levels that threaten infrastructure; the
    16  saltwater intrusion of the  State's  groundwater  resources  (which  may
    17  impact  drinking  water  supplies); and poor indoor air quality (such as
    18  mold and  moisture)  are  just  some  of  those  impacts.  Additionally,
    19  climate-driven  impacts  are magnified in New York's historically margi-
    20  nalized communities that have been disproportionately  affected  by  and
    21  are on the front lines of climate change.
    22    The  legislature finds that the New York Constitution grants every New
    23  Yorker the right to mitigate these impacts.   Article I, Section  19  of
    24  the  New  York State Constitution reads: "Each person shall have a right
    25  to clean air and water, and  a  healthful  environment."  Overwhelmingly
    26  approved  by the voters in 2021, this "green amendment" to our constitu-
    27  tion placed a right to a healthful environment alongside the freedom  of
    28  speech,  religion,  and  property in our Bill of Rights.  As such, every
    29  New Yorker should have the tools to best utilize that right.  This  bill
    30  seeks to provide them with at least one tool.
    31    The  legislature also finds that there has been a scientific consensus
    32  for several decades that climate change is occurring exemplified by  the
    33  testimony  of  Dr.  James  Hansen  of the National Aeronautics and Space
    34  Administration in June 1988 to the U.S. Senate and the  formation  later
    35  that  year  of  the  United  Nations  Intergovernmental Panel on Climate
    36  Change.
    37    The legislature further finds that the fossil fuel industry has  known
    38  for decades that their products overwhelmingly contributed to and accel-
    39  erated climate change, yet they have - and continue to -  lie about this
    40  fact  to  the public. Documents unveiled by litigation and investigative
    41  journalists demonstrate that as early as the 1950s, the industry  became
    42  aware of the potentially catastrophic impact of its products and even in
    43  the  face  of  scientific  consensus  shortly  thereafter  and  research
    44  conducted by their own scientists affirming the impacts of  their  busi-
    45  ness,  the industry outright denied that climate change was real, spread
    46  disinformation to cast doubt on the science, dismissed regulatory action
    47  as insufficient (after no longer  being  able  to  deny  climate  change
    48  outright),  and  currently  advertise "green" efforts to the public that
    49  mask the industry's lack of real investment in  resiliency  and  energy-
    50  source  transition. A December 2022 report by the Oversight Committee in
    51  Congress also revealed internal documents from  senior  leaders  in  the
    52  industry  where,  among  other  things,  they  explicitly  reject taking
    53  accountability for the emissions of their products.
    54    By conduct and impact, the industry has intentionally  obfuscated  the
    55  truth  about climate change and outright deceived the public in order to
    56  continue dependence on their products. The legislature finds  that  this

        A. 4056--A                          3

     1  conduct and the subsequent impact on the public is not political speech,
     2  but  fundamentally commercial activity with incidental political impact.
     3  We also find this conduct to be a substantial factor  in  affecting  the
     4  public's  perception of the threat of climate change, scientific consen-
     5  sus notwithstanding.
     6    New Yorkers should have the ability  to  hold  those  responsible  for
     7  climate  change  accountable for their deceptive practices and the cata-
     8  clysmic impacts these practices have yielded. This bill seeks to provide
     9  them with that opportunity.
    10    § 2. The general business law is amended by adding a new article  20-B
    11  to read as follows:
    12                                ARTICLE 20-B
    13                        FOSSIL FUEL RELATED ACTIVITIES
    14  Section 328.   Definitions.
    15          328-a. Fossil fuel industry member climate liability.
    16          328-b. Defense to liability.
    17          328-c. Right of action.
    18    § 328. Definitions.  For purposes of this article, the following terms
    19  shall have the following meanings:
    20    1. "Covered period" shall mean the period from January first, nineteen
    21  eighty-nine to the effective date of this article.
    22    2. "Fossil fuel industry  member"  shall  mean  a  firm,  corporation,
    23  company,  partnership,  society, joint stock company or any other entity
    24  or association that emitted or caused to be emitted through the extract-
    25  ing, storing, transporting, refining, importing,  exporting,  producing,
    26  manufacturing,  distributing,  compounding,  marketing,  or offering for
    27  wholesale or retail sale, a qualified product with total greenhouse  gas
    28  emissions  of  at least one billion metric tons of carbon dioxide equiv-
    29  alent during the covered period. It shall not include any public  utili-
    30  ty, public authority, or the state of New York or its political subdivi-
    31  sions.
    32    3. "Qualified product" shall mean a fossil fuel product including, but
    33  not limited to:
    34    (a)  crude  petroleum  oil  and  all other hydrocarbons, regardless of
    35  gravity, that are produced at the wellhead in liquid  form  by  ordinary
    36  production methods.
    37    (b) natural, manufactured, mixed, and byproduct hydrocarbon gas.
    38    (c)  refined  crude  oil,  crude  tops, topped crude, processed crude,
    39  processed crude petroleum, residue from crude petroleum, cracking stock,
    40  uncracked fuel oil, fuel oil, treated  crude  oil,  residuum,  gas  oil,
    41  casinghead  gasoline, natural-gas gasoline, kerosene, benzine, wash oil,
    42  waste oil, blended gasoline, lubricating oil, and blends or mixtures  of
    43  oil  with  one or more liquid products or byproducts derived from oil or
    44  gas.
    45    (d) any physical waste generated in the  extracting,  storing,  trans-
    46  porting, refining, importing, producing, manufacturing, distributing, or
    47  compounding  a  qualified product defined in paragraphs (a), (b), and/or
    48  (c) of this subdivision which contains or is contaminated by any  quali-
    49  fied product defined in paragraphs (a), (b), and/or (c) of this subdivi-
    50  sion or any substance appearing on a list within regulations promulgated
    51  by  the  department  of  environmental  conservation pursuant to section
    52  37-0101 of the environmental conservation law.
    53    4. "Reasonable controls  and  procedures"  shall  mean  policies  that
    54  include,  but  are not limited to: (a) instituting business practices to
    55  prevent pollution, including but not limited to the  release  of  green-
    56  house  gases  which  contribute  to  climate  change and emissions which

        A. 4056--A                          4

     1  contribute to adverse health impacts; and (b) preventing deceptive  acts
     2  and  practices  and  false advertising and otherwise ensuring compliance
     3  with all provisions of article twenty-two-A of  this  chapter.  Acts  or
     4  practices related to environmental commitment, performance, or sustaina-
     5  bility  shall  also  be  subject to this subdivision and shall be clear,
     6  objective, and verifiable. The net impression of such acts and practices
     7  shall not mislead a reasonable person about  the  fossil  fuel  industry
     8  member's environmental commitment, performance, or sustainability.  This
     9  subdivision  may  not  be construed to impose liability on any speech or
    10  conduct protected by the first amendment of the United States  Constitu-
    11  tion, as made applicable to the states through the United States Supreme
    12  Court's  interpretation of the fourteenth amendment of the United States
    13  Constitution.
    14    5. "Deceptive acts or practices" shall mean those acts  and  practices
    15  which are unlawful pursuant to article twenty-two-A of this chapter.
    16    6. "False advertising" shall have the same meaning as defined in arti-
    17  cle twenty-two-A of this chapter.
    18    §  328-a.  Fossil  fuel  industry member climate liability. Any fossil
    19  fuel industry member whose conduct has caused or contributed to  climate
    20  change  in  New  York  state,  whether  directly or indirectly, shall be
    21  liable for damages under this article.
    22    § 328-b. Defense to liability. Any fossil fuel  industry  member  that
    23  establishes  and implements reasonable controls and procedures may offer
    24  evidence of those controls and procedures to limit the liability imposed
    25  under section three hundred twenty-eight-a of  this  article;  provided,
    26  however,  such  evidence  shall  not be a complete defense to liability.
    27  When determining the impact of such controls and procedures as a defense
    28  to liability, a court may consider the duration that such  controls  and
    29  procedures  are  in  place in relation to the duration of the conduct in
    30  violation of section three hundred twenty-eight-a of this article or any
    31  other means of measuring the mitigating  effects  of  any  controls  and
    32  procedures relative to the complete impact of the underlying conduct.
    33    §  328-c. Right of action. Any person, government entity, firm, corpo-
    34  ration or association that has been damaged as a result of a fossil fuel
    35  industry member's conduct as described in section three hundred  twenty-
    36  eight-a  of this article shall be entitled to bring an action for recov-
    37  ery of damages in:
    38    1. the county in which all or a substantial  part  of  the  events  or
    39  omissions giving rise to the claim occurred;
    40    2.  the  county of residence for any one of the natural person defend-
    41  ants at the time the cause of action accrued;
    42    3. the county of the principal office in this state of any one of  the
    43  defendants that is not a natural person; or
    44    4.  the  county  of  residence for any plaintiff if the plaintiff is a
    45  natural person residing in this state.
    46    § 3. Severability. If any clause,  sentence,  paragraph,  subdivision,
    47  section  or part of this act shall be adjudged by any court of competent
    48  jurisdiction to be invalid, such judgment shall not affect,  impair,  or
    49  invalidate the remainder thereof, but shall be confined in its operation
    50  to the clause, sentence, paragraph, subdivision, section or part thereof
    51  directly  involved  in the controversy in which such judgment shall have
    52  been rendered. It is hereby declared to be the intent of the legislature
    53  that this act would have been enacted even if  such  invalid  provisions
    54  had not been included herein.
    55    § 4. This act shall take effect immediately.
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