Federal Court Blocks NY's $75B Climate Superfund Act
A New York federal court held the state's $75 billion Climate Change Superfund Act is preempted by the federal Clean Air Act, finding it impermissibly targets global greenhouse gas emissions.
A federal court in New York has blocked the state's Climate Change Superfund Act, a law designed to recover $75 billion from fossil fuel companies for climate adaptation projects. Chief Judge Brenda Sannes held the Act is preempted by the federal Clean Air Act, reasoning its strict liability scheme targeting global greenhouse gas emissions was indistinguishable from state-law nuisance claims the Second Circuit previously rejected in City of New York v. Chevron. The decision provides a significant new defense for energy companies facing a wave of state-level climate liability statutes and lawsuits, and it may influence a similar pending challenge to Vermont's superfund law. The court also determined that applying the law to foreign producers would be barred by the foreign affairs doctrine. Counsel for energy and industrial clients should monitor New York's expected appeal. The ruling’s long-term impact may be shaped by the U.S. Supreme Court, which is set to hear arguments on related preemption issues in Suncor Energy v. County Commissioners of Boulder County on October 5, 2026.