Utah helps defeat New York’s $75 billion climate superfund law

SALT LAKE CITY, Utah — A federal court has struck down New York’s Climate Change Superfund Act, blocking the state’s attempt to impose $75 billion in penalties on energy producers for decades of lawful energy production. The U.S. District Court for the Northern District of New York declared the law unenforceable, handing a win to Utah and the 21 other states that challenged it. 

Utah joined the coalition, led by West Virginia Attorney General JB McCuskey, in bringing the case. The U.S. Department of Justice filed a statement of interest supporting the states’ position, and attorneys representing the coal, oil, and natural gas industries brought a parallel lawsuit that the court consolidated with the states’ case.

“Utah fought to protect the industries that keep our lights on and our economy running — and today, we won. New York tried to hand energy producers a $75 billion bill for legally producing energy, going all the way back to 2000,” said Utah Attorney General Derek Brown. “One state doesn’t get to dictate energy policy for the rest of the country, and this ruling makes that clear.”

The Court heard arguments in West Virginia v. James in late July. Today, Chief Judge Brenda Sannes issued a written ruling in favor of the state and industry plaintiffs, holding that the Climate Change Superfund Act was “simply beyond the limits of state law.” The Court found that New York’s law conflicts with the federal government’s interest in uniform air pollution regulation. Because the federal Clean Air Act sets the exclusive rules for regulating interstate air pollution, and New York’s law is inconsistent with it, New York cannot enforce the state law. The Court also held that the foreign affairs doctrine preempts the law’s attempt to regulate international emissions.

The ruling is the first of its kind on this issue. The West Virginia-led coalition is currently challenging a similar Superfund law in Vermont, and comparable legislation is pending in several other states.

Background on the challenge of New York’s Climate Change Superfund Act:

• Climate Superfund laws threaten America’s energy independence by punishing energy producers for decades of prior, lawful production. New York’s statute assessed liability for greenhouse gas emissions attributable to fossil fuel extraction and refining from 2000 to 2024.
• Throughout those years, energy producers followed the law. The EPA regulated them, and they operated under state laws that allowed them to legally produce energy for the nation.
• New York itself used and profited from fossil fuels during the same period.
• The law singled out select traditional energy producers for crippling penalties, aiming to impose $75 billion in fines.

Utah joined West Virginia, Alabama, Arkansas, Georgia, Idaho, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, and Wyoming in the lawsuit.