US court blocks New York's $75 billion climate superfund law
A US federal judge blocked New York's 2024 climate superfund law, citing federal preemption.
A federal judge has blocked New York from enforcing its 2024 climate superfund law, which sought to compel oil companies to contribute $75 billion over 25 years to a fund for climate-related damages.
Chief U.S. District Judge Brenda Sannes, sitting in Syracuse, ruled on Monday that the state measure is preempted by federal law. The decision came in response to a lawsuit filed by a group of Republican state attorneys general and industry bodies, including the U.S. Chamber of Commerce.
The ruling is a setback for the Democratic-led state's effort to hold fossil fuel companies financially accountable for climate change impacts. The law had been designed to create a dedicated fund to cover costs associated with extreme weather, rising sea levels, and other climate-related harms.
Legal experts say the decision could influence similar state-level initiatives, as it underscores the limits of state authority in areas where federal law governs interstate commerce and energy regulation. The case is likely to be appealed, potentially setting up a higher-court review of how states can address climate liability.