3-minute read
New York’s Climate Change Superfund Act potentially places significant burdens on trucking companies and consumers through escalated costs. The trucking sector, already facing numerous regulations and taxes such as congestion pricing and the Highway Use Tax, is struggling to keep up.
The implementation of the Climate Change Superfund Act by Governor Kathy Hochul mirrors the erroneous logic of President Trump’s tariffs—assuming that taxing major industries won’t adversely affect everyday citizens. The $75 billion superfund aims to hold “big polluters” accountable, yet these expenses will ultimately pass on to fuel suppliers, trucking companies, and consumers, merely raising costs without fostering genuine environmental improvements.
Coupled with existing congestion pricing and zero-emission vehicle mandates, this new law adds yet another weight to an already taxed trucking industry, which is critical to New York’s economy. Rising operational costs present challenges for New Yorkers who are coping with an affordability crisis.
New York hosts over 113,000 trucking businesses, primarily small, locally owned entities. These aren’t large corporations; they’re family-operated firms crucial for distributing goods statewide. The trucking sector provides more than 328,000 jobs and contributes upwards of $20 billion in wages annually, supplying essential products to 89% of communities solely reliant on trucks.
Despite their contributions, trucking companies shoulder a heavier tax burden than most. In 2022, they collectively paid $979 million in federal and state roadway taxes—accounting for nearly a third of all motorist taxes in New York. Each five-axle truck incurs around $24,000 annually in highway user fees, in addition to standard business taxes.
However, policies such as the Climate Change Superfund Act are making it increasingly difficult for these companies to operate. The Trucking Association of New York has already protested the congestion pricing scheme, having filed lawsuits against the MTA, while legal challenges to the Superfund Act have emerged from a coalition of 22 states led by West Virginia, arguing that New York is overreaching its authority.
While over half of U.S. commercial trucks now employ cutting-edge near-zero-emission diesel technology, mandating an all-electric transition without adequate infrastructure is flawed. A more practical strategy would involve incentivizing investment in near-zero-emission diesel vehicles and renewable fuels, which could mitigate emissions without jeopardizing supply chains. New York should aim for balanced policies that support environmental goals without compromising an essential industry.
Kendra Hems is president of the Trucking Association of New York and previously served on the Climate Action and Community Protection Act Transportation Advisory Panel.
