Federal Judge Blocks New York's $75 Billion Climate Superfund Law
A federal judge struck down New York's Climate Change Superfund Act, ruling that the state cannot collect $75 billion from fossil fuel companies under federal law.
U.S. District Judge P. Kevin Castel struck down New York's Climate Change Superfund Act on September 25, blocking the state from collecting $75 billion from fossil fuel companies. The law aimed to fund climate infrastructure by charging companies for greenhouse gas emissions produced between 2000 and 2024. This ruling follows an August 31 decision by U.S. District Judge Brenda Sannes, who also blocked the law after challenges from 22 states and various business groups.
Stanley E. Woodward, Jr. and the U.S. Department of Justice argued that the law violated the doctrine of preemption by intruding on federal authority to regulate emissions under the Clean Air Act and interfering with foreign affairs. Judge Castel rejected New York's claim that the law was for compensation rather than regulation, ruling that the charges effectively regulated interstate emissions.
While New York plans to appeal, the decision has emboldened Republican officials. West Virginia Attorney General JB McCuskey vowed to sue any other state passing similar policies, including Vermont, which has enacted its own climate superfund law. Conversely, Democratic lawmakers in Rhode Island, Connecticut, and Hawaiʻi intend to continue pursuing accountability legislation. The future of these state-level efforts may depend on the Supreme Court of the United States' upcoming ruling in Suncor v. Boulder County, which could establish a national precedent on whether federal law preempts state climate liability claims.
