Court strikes down New York law that sought to hold fossil fuel companies liable for climate change

A federal court on Monday struck down a New York law that sought to hold fossil fuel companies accountable for climate change .

Brenda Sannes, an Obama appointee, ruled that New York’s “Climate Superfund” law is preempted by federal statutes.

“The Climate Act is an unusual and sweeping statute, designed to address the effects of climate change — a ‘uniquely international problem of national concern,’” Sannes wrote.

She added that the act is “beyond the limits of state law” and added “it is precisely because the Climate Act operates within an area of law ‘in which the federal interest is so dominant’ that it cannot be enforced.”

In 2024, New York Gov. Kathy Hochul (D) signed a bill that would hold the companies that have been responsible for the most planet-warming emissions to pay a total of $3 billion a year for 25 years.

The law is modeled after federal Superfund laws, which put companies on the hook to pay for the pollution that they cause.

Republican-led states and fossil fuel trade associations challenged the New York law in court, characterizing it as an attempt to reshape the entire country’s energy industry.

New York has argued that its law seeks to hold companies accountable for harm the state has incurred due to climate change’s impacts on rising temperatures and extreme weather.

The Trump administration has also sued New York to try to block the law. It has also sued Vermont, which has a similar one on the books .

“Taxpayers shouldn’t have to foot the bill for damages caused by polluters,” said Ken Lovett, senior communications adviser on energy and environment for Hochul, in an email.

“We are reviewing the decision to determine possible next steps,” he added.

Red states and the Trump administration celebrated the ruling.

“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,” said Principal Deputy Assistant Attorney General Adam Gustafson in a written statement.

“This is a major victory in the fight against liberal states, trying to balance their budgets on the backs of our hard-working men and women in the coal, oil and gas industries,” said West Virginia Attorney General JB McCuskey (R) in a written statement. “West Virginians can’t afford more liberal policies that jack up electricity and transportation costs. Thankfully, New York politicians can’t put their hands in West Virginia families’ pocketbooks now.”