Court strikes down New York law that sought to hold fossil fuel companies liable for climate change

A federal judge has struck down New York's plan to create a $75 billion fund to hold fossil fuel producers accountable for climate change damages, ruling that the state's law extends beyond its authority and crosses into a matter of federal interest. Democratic Governor Kathy Hochul signed the law in 2024, but it faced legal challenges from fossil fuel interests, business groups, Republican state attorneys general, and the U.S. Environmental Protection Agency.

U.S. District Judge Brenda Sannes ruled that the state's climate law operates within the realm of federal law and aims to collect damages for a global issue, which conflicts with the need for uniform national energy and environmental policies and is not authorized by the Clean Air Act. The judge also noted that attempting to collect damages from foreign producers is preempted by foreign affairs doctrine, making it unconstitutional.

Climate change advocates are considering an appeal of the decision, while Governor Hochul's administration stated that taxpayers should not have to bear the burden of damages caused by polluters and is reviewing the ruling to determine the next steps. The Department of Justice, under the previous administration, had previously challenged similar laws in Michigan, Hawaii, and Vermont, in line with its efforts to uphold President Trump's "national energy emergency" declaration.