Federal judge blocks New York's $75 billion climate superfund law targeting fossil fuel companies

Federal judge blocks New York's $75 billion climate superfund law, citing federal preemption.

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Chief US District Judge Brenda Sannes ruled on 2026-08-31 that New York cannot enforce its 2024 Climate Change Superfund Act, which required fossil fuel companies to pay $75 billion over 25 years into a fund for climate change damage. ^[1] Chief Judge Brenda Sannes of the U.S. District Court for the Northern District of New York ruled on Monday that New York's 2024 climate Superfund law is preempted by the federal Clean Air Act. ^[2] Sannes, an appointee of Democratic president Barack Obama, said the federal Clean Air Act, which gave the Environmental Protection Agency authority to regulate carbon-dioxide emissions, did not authorize states to adopt emissions compensation schemes such as New York's. ^[3] The New York Climate Change Superfund Act, signed by Governor Kathy Hochul in December 2024, required fossil fuel companies to contribute $3 billion annually to the superfund starting in 2028, divided based on their greenhouse gas emissions between 2000 and 2018. ^[4] The lawsuit challenging New York's law was brought by fossil fuel companies and the attorneys general of 22 Republican-led states. ^[5] West Virginia Attorney General JB McCuskey, a Republican who led the states' opposition, called the law 'a money grab by the elites in New York.' ^[6] West Virginia Attorney General JB McCuskey stated that the ruling was a major victory in the fight against liberal states trying to balance budgets on the backs of the coal, oil, and gas industries. ^[7]

What this stands on

Chief Judge Brenda Sannes of the U.S. District Court for the Northern District of New York ruled on Monday that New York's 2024 climate Superfund law is preempted by the federal Clean Air Act. · Florida Phoenix

Sannes, an appointee of Democratic president Barack Obama, said the federal Clean Air Act, which gave the Environmental Protection Agency authority to regulate carbon-dioxide emissions, did not authorize states to adopt emissions compensation schemes such as New York's. · The Jerusalem Post

The New York Climate Change Superfund Act, signed by Governor Kathy Hochul in December 2024, required fossil fuel companies to contribute $3 billion annually to the superfund starting in 2028, divided based on their greenhouse gas emissions between 2000 and 2018. · The Jerusalem Post

The lawsuit challenging New York's law was brought by fossil fuel companies and the attorneys general of 22 Republican-led states. · Florida Phoenix

West Virginia Attorney General JB McCuskey, a Republican who led the states' opposition, called the law 'a money grab by the elites in New York.' · The Jerusalem Post

West Virginia Attorney General JB McCuskey stated that the ruling was a major victory in the fight against liberal states trying to balance budgets on the backs of the coal, oil, and gas industries. · Florida Phoenix

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