New York Judge Blocks State of New York’s Unconstitutional Climate Superfund Act

Today, the U.S. District Court for the Northern District of New York ruled that the State of New York may not impose strict liability on energy companies for their alleged contributions to global greenhouse gas emissions. In 2024, New York enacted the “Climate Change Superfund Act,” which purported to impose billions of dollars on domestic and foreign energy companies that extract fossil fuels or refine crude oil.  A coalition of states and trade organizations sued, alleging that the Act is preempted by the federal Clean Air Act and by the federal foreign affairs power, and that the Act violates the Constitution. After the case was consolidated with a suit filed by a different coalition of trade organizations, the Justice Department filed a statement of interest and presented oral argument in support of the plaintiffs. The court agreed that the New York Climate Change Superfund Act is preempted by the Clean Air Act and by the federal foreign affairs power, and the court held that the Climate Act is invalid.