US Judge Blocks New York Climate Superfund Law, Halting $75 Billion Fossil Fuel Levy
A federal judge ruled that New York State cannot enforce its 2024 Climate Superfund Act, which sought to collect $75 billion from fossil fuel companies over 25 years. Chief Judge Brenda Sannes sided with Republican-led states and business groups, citing conflict with federal law. The ruling halts payments of $3 billion annually from about 36 companies, pending state review.
A federal judge has ruled that New York State cannot enforce its Climate Superfund Act, passed in 2024, which was designed to collect approximately $75 billion from carbon-emitting companies deemed responsible for climate damage between 2000 and 2018. Chief Judge Brenda Sannes of the U. S. District Court for the Northern District of New York, sitting in Syracuse, sided with attorneys general from 22 Republican-led states and industry groups such as the U. Chamber of Commerce, finding that the state law conflicts with federal law. The judge noted that the federal Clean Air Act authorizes the Environmental Protection Agency to regulate carbon dioxide emissions but does not permit states to implement their own emission compensation schemes.
New York Governor Kathy Hochul signed the law in December 2024, requiring about 36 fossil fuel companies to pay a combined $3 billion annually for 25 years, totaling $75 billion. The funds were intended for infrastructure projects including coastal wetlands, stormwater systems, roads, bridges, and extreme weather response.
West Virginia Attorney General John McCuskey led the lawsuit filed in February 2025. Participating state attorneys general argued at the time that New York's law was politically motivated and penalized traditional energy companies, including coal and natural gas firms in West Virginia, which currently comply with applicable laws.
A spokesperson for Governor Hochul's office, Ken Lovett, said the office is reviewing the ruling to determine next steps. New York is the second state to establish a superfund requiring large fossil fuel companies to fund infrastructure projects such as flood protection and coastal defense. The U. Chamber of Commerce and the American Petroleum Institute filed a similar lawsuit against Vermont's analogous law on December 30, 2024, which remains pending.