More than 20 states sue New York over Climate Change Superfund Act

• Over 20 states have filed a federal lawsuit against New York, challenging the constitutionality of the Climate Change Superfund Act. The law seeks to collect $75 billion from fossil fuel companies for greenhouse gas emissions.
• Plaintiffs argue the law imposes unprecedented liability on energy producers, violates the U.S. Constitution and Clean Air Act, and could increase costs for businesses and consumers.
• Supporters say the law ensures major polluters, not taxpayers, bear the financial burden of climate-related damages.

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More than 20 states have filed a federal lawsuit against New York, challenging the constitutionality of the state’s recently enacted Climate Change Superfund Act. The lawsuit, filed in the U.S. District Court in Albany, argues that the legislation imposes unprecedented liability on energy producers and violates both the U.S. Constitution and the federal Clean Air Act.

What does the Climate Change Superfund Act do?

The law, signed by Gov. Kathy Hochul, D, in December, aims to collect approximately $75 billion from companies deemed responsible for greenhouse gas emissions due to fossil fuel production and refinement. Foreign governments control some of these companies.

New York’s Attorney General’s Office and Department of Taxation and Finance have been granted enforcement authority under the law. However, questions remain about the extent of their jurisdiction over foreign entities.

Why are states suing New York over this law?

The lawsuit is led by attorneys general from 22 states, with industry groups such as the Gas and Oil Association of West Virginia also joining the challenge. The plaintiffs argue that the law unfairly penalizes a select group of energy producers for global emissions while overlooking the role of consumers in fossil fuel use.

Additional opponents of the law, including a coalition of business, energy, and labor organizations aligned with the Business Council of New York State, argue that the measure could increase costs for businesses and consumers.

What are the law’s supporters saying?

Supporters of the Climate Change Superfund Act, including several New York state lawmakers, contend that the law holds major greenhouse gas emitters accountable and ensures taxpayers do not bear the financial burden of climate-related damages.