Gov. Kathy Hochul said Tuesday that the state is reviewing its options after a federal judge in Syracuse struck down New York’s Climate Change Superfund Act.
The law, which passed in 2024, sought to collect $75 billion from fossil fuel and other companies, both foreign and domestic, that are believed to be responsible for greenhouse gas emissions.
A coalition of mostly Republican-led states and business groups sued to block the law. And eventually, the Department of Justice joined the effort, arguing that the law was unconstitutional.
Federal District Court Judge Brenda Sannes did not go that far but found that the act is “simply beyond the limits of state law.”
In a statement, the DOJ said it acted to “protect American energy from state overreach.”
“The court held that federal law preempts New York’s attempt to regulate global environmental concerns, marking a significant step in advancing President Trump’s energy agenda and lowering energy prices for Americans,” said Associate Attorney General Stanley Woodward. “We will continue to fight to uphold the rule of law, unleash American energy, and protect our national security.”
The judge also found the claims the state was making were similar to claims that New York City made in its lawsuit against oil companies in 2018. It was later dismissed by the U.S. Second Circuit Court of Appeals.
But Sen. Liz Krueger, D-Manhattan, one of the bill’s original sponsors, disagreed.
“It is unfortunate that Judge Sannes failed to recognize the clear distinction between a tort lawsuit … and a state legislature exercising its constitutional powers to raise revenues and protect its citizens,” Krueger said in a statement.
Other supporters of the law, such as the New York Public Interest Research Group, are urging the state to appeal.
“If this ruling stands, then New Yorkers or New York taxpayers are out somewhere in the neighborhood of $75 billion that they're going to get either in increased taxes or reduced services, or both,” said Blair Horner, senior policy adviser for NYPIRG. “And so that is the stark reality of this court decision.”
A similar law in Vermont is also facing a court challenge. Horner said both could end up before the Second Circuit.
