A federal court on Monday struck down New York’s Climate Change Superfund Act, ruling that the state cannot impose strict liability on energy companies for global greenhouse gas emissions.
The U.S. District Court for the Northern District of New York determined that the 2024 state law is invalid because federal authority overrides it. Specifically, the court found the statute is preempted by the federal Clean Air Act and the federal government’s constitutional power over foreign affairs.
Enacted in 2024, the Climate Change Superfund Act sought to collect billions of dollars from domestic and international companies that extract fossil fuels or refine crude oil.
A coalition of states and trade organizations filed lawsuits against the measure, arguing it violated the U.S. Constitution and conflicted with federal statutes. Following the consolidation of the lawsuits, the U.S. Department of Justice intervened, submitting a statement of interest and presenting oral arguments backing the challengers.
“The Department of Justice is delivering on President Trump’s order to protect American energy from state overreach,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Energy and Natural Resources Division. “New York’s law would have expropriated $75 billion from energy companies around the world during an energy emergency and in direct defiance of American foreign policy and federal law. We will continue to fight for affordable, reliable energy for all Americans.”
The Justice Department’s involvement follows Executive Order 14260, titled Protecting American Energy from State Overreach, in which President Trump directed the Attorney General to halt state measures that burden domestic energy production.
Federal attorneys are also pursuing related legal actions in other jurisdictions. The Justice Department has filed a separate complaint against New York’s law in the U.S. District Court for the Southern District of New York, alongside a legal challenge against Vermont’s Climate Superfund Act in the District of Vermont.
In both pending cases, the federal government is seeking formal declarations that the state statutes are unconstitutional, as well as injunctions to block their enforcement.
READ: Federal Monitors Stationed Across Massachusetts For Primary Day
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