Federal Judge Strikes Down New York's $75B Climate Superfund Law

A federal judge on Monday struck down New York’s landmark climate “superfund” law, ruling that the state cannot force fossil fuel companies to pay $75 billion into a fund to cover the costs of climate change adaptation. The decision, issued by Chief U.S. District Judge Brenda Sannes, found that the state law is preempted by federal authority, dealing a significant blow to a novel strategy for holding energy companies financially accountable for global warming. The ruling came in a lawsuit filed by a coalition of 22 Republican-led states and industry groups, including the U.S. Chamber of Commerce and the American Petroleum Institute. The U.S. Department of Justice also intervened in support of the challengers. The legal challenge centered on New York’s Climate Change Superfund Act, which was signed into law by Governor Kathy Hochul in December 2024. The law required major fossil fuel companies responsible for more than 1 billion tons of greenhouse gas emissions between 2000 and 2018 to collectively pay $3 billion annually, totaling $75 billion over 25 years, into a state fund.