Hochul Reconsiders Tropical Deforestation Bill After Previous Veto, Amid New Amendments and Lobbying

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Governor Kathy Hochul is once again reviewing a bill aimed at combating tropical deforestation after vetoing a similar proposal last year. The legislation, known as the Tropical Rainforest Economic & Environmental Sustainability (TREES) Act, seeks to ensure that companies contracting with New York State do not contribute to the degradation of tropical forests through their supply chains.

The bill's original version faced significant opposition from businesses and was ultimately vetoed by Hochul in December 2023. The Governor cited concerns about the feasibility of implementing the bill, including the challenges of tracing the origins of commodities like palm oil, coffee, and beef, which are often linked to deforestation. “Imposing this burden on businesses could drive them away from doing business with the state and put at risk important government operations,” Hochul stated in her veto memo.

In response to these concerns, lawmakers have introduced several amendments to the bill. These include exemptions for specific state agencies like the Metropolitan Transit Authority (MTA) and the Staten Island Ferry, which have been granted a five-year grace period to comply with the new regulations. Additionally, the bill now includes provisions to help small and medium-sized businesses adapt to the new requirements through the proposed Supply Chain Transparency Assistance Program.

State Senator Liz Krueger, a key sponsor of the bill, emphasized the importance of the legislation for global environmental efforts. “This bill is about using New York’s economic leverage to require companies to change the way their supply chains impact tropical forests,” Krueger said. She also highlighted the global significance of the bill, noting that tropical forests play a critical role in climate mitigation and biodiversity protection.

The legislation has also drawn the attention of major corporations like Sysco, the world’s largest food distributor, which has lobbied against the bill. Sysco, which has over $200 million in contracts with the state, has expressed concerns about the difficulty of complying with the new regulations, particularly in accurately tracing the origins of its products.

Advocates for the bill are pushing back against efforts to weaken its provisions. Jeff Conant, director of the International Forests Program at Friends of the Earth, warned that any significant dilution of the bill’s requirements would undermine its purpose. “For Hochul to weaken this bill, in any way, is to undermine any commitment she may have to climate, to the environment, and to human rights,” Conant said.

As Governor Hochul weighs the revised bill, environmental advocates are urging her to sign it into law without further concessions, arguing that it is a critical step toward preventing deforestation and addressing the climate crisis. The outcome of this decision could have significant implications, not only for New York but also as a potential model for other states and even international policy on environmental sustainability.