Another Federal Judge Strikes Down New York’s Climate Superfund Law as Unconstitutional
A federal judge ruled New York’s Climate Change Superfund Act unconstitutional, blocking $75 billion in penalties against energy companies and affirming federal authority over energy regulation.
A federal judge in the Southern District of New York invalidated New York’s Climate Change Superfund Act, ruling it unconstitutional and blocking the state from imposing $75 billion in penalties on energy producers. The decision follows a similar ruling last month by a judge in the Northern District of New York, both citing federal preemption and sovereign authority over interstate emissions. The U.S. Department of Justice argued the law overstepped state authority and interfered with national energy policy. The court held the law conflicts with federal regulations under the Clean Air Act and the foreign affairs doctrine.
The Justice Department asserted that New York’s law was not only unconstitutional but also harmful to energy affordability and reliability nationwide. Associate Attorney General Stanley E. Woodward, Jr., stated the rulings affirm federal responsibility for regulating the nation’s energy market. The DOJ emphasized its commitment to preventing state-level actions that undermine federal energy policy. The department framed the decisions as a defense of President Trump’s energy agenda to prioritize domestic energy production.
New York enacted the Climate Change Superfund Act in 2024, aiming to hold domestic and foreign energy companies liable for alleged climate impacts. The law sought to impose billions in penalties on companies involved in fossil fuel extraction or crude oil refining. The court ruled the state lacked authority to regulate interstate emissions or foreign affairs, areas reserved for federal oversight. The decision underscored the federal government’s exclusive role in setting national energy and environmental policy.
Principal Deputy Assistant Attorney General Adam Gustafson of the DOJ’s Energy and Natural Resources Division highlighted that two federal judges have now struck down the law as unconstitutional. The DOJ stated the rulings reinforce federal preemption, preventing states from enacting climate policies that conflict with national frameworks. The department vowed to continue challenging state-level energy regulations it deems unlawful or overreaching.