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New York cannot enforce $75 billion climate 'superfund' law, US judge rules

The ruling found the law exceeded state authority and conflicted with the federal Clean Air Act, which would have imposed $75 billion in fines.

  • On Monday, Chief U.S. District Judge Brenda Sannes ruled that New York cannot enforce its Climate Change Superfund Act, finding federal law preempts the state measure that sought $75 billion from fossil fuel companies.
  • West Virginia Attorney General J.B. McCuskey led the successful legal challenge, arguing the state law constituted "overreach" that improperly penalized energy producers under the federal Clean Air Act.
  • Sannes found the law "simply beyond the limits of state law," blocking requirements for companies to pay $3 billion annually over 25 years for infrastructure projects including coastal wetlands and stormwater systems.
  • Principal Deputy Assistant Attorney General Adam Gustafson welcomed the ruling, while New York Governor Kathy Hochul's office stated it is reviewing the decision to determine next steps for the state's climate agenda.
  • This ruling serves as a bellwether for parallel litigation in Vermont, where industry groups have challenged a similar superfund law, raising uncertainty about the future of state-led environmental liability schemes nationwide.
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Reuters broke the news in London, United Kingdom on Monday, August 31, 2026.
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