Provided by John Jennings, Harter Secret & Emery
On August 31st, the US District Court for the Northern District of New York struck down the Climate Change Superfund Acti, which was signed into law in 2024. The Actii sought to require certain fossil fuel companies to fund climate adaptation projects in New York based on their proportionate share of historic greenhouse gas emissions dating to January 1, 2000. The Climate Change Adaptation Cost Recovery Program created by the legislation would recover $75 Billion over 25 years to be used for “infrastructure investments and other expenses necessary for the comprehensive adaptation to the impacts of climate change in New York.”
Soon after its passage, twenty-two states and several trade associations representing businesses and the fossil fuel industry filed lawsuits challenging the Act. In a 63-page decision, Chief U.S. District Court Judge Brenda K. Sannesiii granted summary judgment for the plaintiffs, determining that the Act could not be enforced because it is preempted by federal law.
Judges Sannes noted that “the Climate Act is an unusual and sweeping statute, designed to address the effects of climate change – a uniquely international problem of national concern.” The decision emphasized that climate change and greenhouse gas emissions are inherently interstate and international issues, making them ill-suited for regulation through state laws that effectively seek recovery for worldwide emissions. In “seeking damages ‘for the cumulative impact’ of conduct that has ‘occurred simultaneously across just about every jurisdiction on the planet,’ the Climate Act conflicts with ‘the overriding…need for a uniform rule of decision’ on matters influencing national energy and environmental policy, and … basic interests of federalism.’”
A spokesperson for Governor Hochul said that they are reviewing the decision to determine possible next steps, but that “taxpayers shouldn’t have to foot the bill for damages caused by polluters.” Bill sponsor Senator Liz Krueger, stated, “We feel very strongly the attorney general needs to appeal this to a higher court, and we believe that we will win.”
If New York appeals this decision to the Second Circuit Court of Appeals, it faces an uncertain path. Judge Sannes’s decision relied on a 2021 Second Circuit case related to a lawsuit brought by the City of New York against several multinational oil companies, seeking damages for the cost of “climate proofing its infrastructure and property.”iv In that case, the Second Circuit dismissed the City’s claims on similar preemption grounds.
We will keep you apprised as the state considers its options on appeal.
i West Virginia v. James (N.D.N.Y. Aug. 31, 2026)
ii New York Environmental Conservation Law Sections 76-0101 – 0105.
iii Judges Sannes was appointed by President Barack Obama in 2014.
iv City of New York v. Chevron Corporation, 993 F.3d 81 (2d Cir. 2021).
