Federal court strikes down New York's climate 'superfund' law, arguing it's preempted by federal law

A federal court on Monday struck down a New York law that sought to penalize oil companies for what the law's supporters claim are the impacts of climate change. 

Judge Brenda Sannes, an Obama appointee, ruled that New York's "Climate Superfund" law is preempted by federal law, and the act is "beyond the limits of state law." 

"It is precisely because the Climate Act operates within an area of law ‘in which the federal interest is so dominant’ that it cannot be enforced," Sannes wrote, The Hill reported. 

New York Gov. Kathy Hochul, a Democrat, signed the bill in 2024. It would have required oil companies to pay a total of $3 billion a year for the next 25 years. 

Republican-led states and industry organizations challenged the law in court, arguing that it attempts to impose New York's climate policies upon the entire country's energy industry. The Trump administration also sued New York to block the law, as well as New Hampshire, which has a similar law on the books. 

Ken Lovett, senior communications adviser on energy and environment for Hochul, told The Hill that the governor's office is "reviewing the decision to determine possible next steps."