Chief U.S. District Judge Brenda Sannes struck down New York's landmark Climate Change Superfund Act, ruling that the state law is preempted by the federal Clean Air Act and foreign affairs doctrine. Signed by Governor Kathy Hochul in 2024, the law sought to collect $75 billion over 25 years from major fossil-fuel companies to fund climate resiliency projects. The ruling represents a major victory for the 22 Republican state attorneys general, industry groups, and the Trump administration who challenged the measure.
Federal court ruling
- ▪Judge Brenda Sannes ruled that New York's Climate Change Superfund Act is preempted by federal law and operates beyond the limits of state authority.
- ▪Chief U.S. District Judge Brenda Sannes ruled on August 31, 2026, that New York cannot enforce its 2024 Climate Change Superfund Act.
- ▪Judge Brenda Sannes relied on the Second Circuit Court of Appeals' 2021 decision in City of New York v. Chevron to support her ruling striking down the New York law.
Clean Air Act preemption
- ▪Judge Brenda Sannes ruled that the Clean Air Act, which designates the Environmental Protection Agency as the primary regulator of greenhouse gases, does not authorize states to adopt emissions compensation schemes.
- ▪Judge Brenda Sannes wrote that attempting to collect climate damages from foreign fossil fuel producers is preempted by the foreign affairs doctrine, making it unconstitutional.
Climate Superfund Act provisions
- ▪The New York Climate Change Superfund Act required fossil-fuel companies responsible for over 1 billion tons of greenhouse gas emissions between 2000 and 2018 to pay $3 billion annually starting in 2028.
- ▪The Climate Change Superfund Act, signed by New York Governor Kathy Hochul in December 2024, required major fossil-fuel companies to pay a combined $75 billion over 25 years.
- ▪Funds collected under New York's Climate Change Superfund Act were earmarked for infrastructure projects, including coastal wetlands, stormwater systems, roads, bridges, and extreme weather responses.
Republican states challenge law
- ▪West Virginia Attorney General JB McCuskey led a coalition of 22 Republican state attorneys general in a February 2025 lawsuit challenging New York's Climate Change Superfund Act.
- ▪The Trump administration's Department of Justice filed a lawsuit and supported the Republican attorneys general in challenging New York's Climate Change Superfund Act.
Other state climate laws
- ▪Lawmakers in at least 12 other U.S. states have proposed climate superfund bills, though none have been passed into law.
- ▪Vermont is facing a parallel legal challenge from the U.S. Chamber of Commerce, the American Petroleum Institute, and the Trump administration over its own climate superfund law.
Story comments
Loading comments…