Another Federal Judge Strikes Down New York’s Climate Superfund Law as Unconstitutional

 

Last week, the U.S. District Court for the Southern District of New York granted the United States’ motion for summary judgment and invalidated New York’s “Climate Change Superfund Act.” The court held the law is unconstitutional and enjoined the state from imposing $75 billion in penalties on global energy producers for the alleged local effects of climate change. Last month, the U.S. District Court for the Northern District of New York also ruled against the state.

“New York’s woke climate change law is not only unconstitutional, it is harmful, jeopardizing every American’s access to affordable and reliable energy,” said Associate Attorney General Stanley E. Woodward, Jr. “We are pleased with the district courts’ decisions finding New York’s law unlawful and recognizing that the Federal Sovereign, not the States, regulates our Nation’s energy market. This Department of Justice will take every step to stop those who wish to thwart President Trump’s agenda to unleash American energy dominance.”

“Both federal judges to consider New York’s Climate Change Superfund Act have held it unconstitutional,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Energy and Natural Resources Division (ENRD). “Both hold that the federal government is responsible for setting national policy on global pollution, not states. This decision marks another significant step in advancing President Trump’s energy agenda and protecting American energy from state overreach. The Department of Justice will continue to fight for affordable, reliable energy for all Americans.”

New York enacted its law in 2024 seeking to impose billions of dollars in liability on domestic and foreign energy companies that extract fossil fuels or refine crude oil. 

In its ruling last week, the court held that the United States has standing to vindicate its sovereign authority to regulate interstate emissions and to promote its foreign affairs interests. The court also held the New York law is preempted on two independent grounds: first, because it is not authorized by the Clean Air Act, which displaced the federal common law governing interstate emissions; and second, because it is field-preempted under the foreign affairs doctrine.