U.S. District Judge Brenda Sannes issued the ruling against the statute, which was signed into law in 2024 by Democratic New York Gov. Kathy Hochul. The litigation brought together a broad coalition of opponents, including business associations like the U.S. Chamber of Commerce, 22 Republican state attorneys general, the U.S. Environmental Protection Agency, and various fossil fuel interests.
Judicial Ruling and Constitutional Conflicts
According to Judge Sannes’ ruling, New York’s climate law operated in an arena governed by federal law for more than a century by attempting to collect damages for cumulative environmental conduct occurring nearly everywhere on Earth. Sannes wrote that the state-level program conflicts with the constitutional need for a uniform national energy and environmental policy.
The court found that the state legislation lacked authorization under the federal Clean Air Act, which designates the EPA as the primary regulator of greenhouse gas emissions. Furthermore, Sannes noted that attempting to extract financial penalties from foreign fossil fuel producers directly violates the foreign affairs doctrine, rendering the statute unconstitutional.
Origins of New York Climate Law
The invalidated statute required energy companies responsible for substantial greenhouse gas emissions between 2000 and 2018 to collectively pay $3 billion annually over a 25-year period. State lawmakers originally approved the measure to force major oil and gas companies to shoulder the costs of extreme weather repairs and underwrite resiliency infrastructure projects, such as coastal wetland restoration and upgrades to roads, bridges, and water drainage systems.
Following the decision, climate change activists urged Governor Hochul’s administration to appeal. A spokesperson for the governor’s administration stated that taxpayers shouldn’t have to foot the bill for damages caused by polluters and confirmed that officials are reviewing the decision to determine next steps.
Federal Enforcement and Industry Response
President Donald Trump’s administration previously challenged similar laws in Michigan, Hawaii, and Vermont after declaring a national energy emergency and directing the U.S. Department of Justice to take action against states overreaching their regulatory authority.
Adam Gustafson, a principal deputy assistant attorney general, said in a statement that the ruling delivers on President Trump’s order to protect American energy from state overreach. Gustafson noted that New York’s law would have expropriated $75 billion from energy companies around the world during an energy emergency and in direct defiance of American foreign policy and federal law.
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