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PoliticsSeptember 12, 2026

Federal court blocks New York's climate liability law for energy companies

The Climate Change Superfund Act would have imposed billions in costs on fossil fuel companies for their role in climate change.

SK
Steve Kim
3d ago
Source: This report is based on an official public release from U.S. Department of Justice. PULSE organizes and summarizes public government communications. Read the original release →

A federal judge has blocked New York's Climate Change Superfund Act, ruling that the state law is unconstitutional and exceeds state authority. The law sought to impose strict liability on fossil fuel companies for their contributions to climate change.

New York enacted the law in 2024 to require domestic and foreign energy companies that extract fossil fuels or refine crude oil to pay for climate change damages. A coalition of states and trade organizations sued, challenging the law as an unconstitutional overreach of state power.

The U.S. District Court for the Northern District of New York ruled that the law is preempted by the federal Clean Air Act and by federal authority over foreign affairs. The court found the Climate Change Superfund Act invalid.

The U.S. Department of Justice had filed a statement of interest in the case, arguing that the state law improperly intruded on federal authority over environmental regulation and international relations.

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