Department of Justice Blocks New York's Climate Superfund Act, Citing Unconstitutionality
The U.S. District Court for the Northern District of New York has ruled against the State of New York's 'Climate Change Superfund Act,' preventing its enforcement. This act, enacted in 2024, aimed to impose billions of dollars in liability on domestic and foreign energy companies involved in fossil fuel extraction or crude oil refining for their alleged contributions to global greenhouse gas emissions. A coalition of states and trade organizations challenged the law, arguing it was preempted by the federal Clean Air Act and federal foreign affairs power, and violated the U.S. Constitution. The Department of Justice (DOJ) filed a statement of interest and presented oral arguments supporting the plaintiffs, aligning with President Trump's directive to protect American energy from state overreach. Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Energy and Natural Resources Division (ENRD) stated that the law would have expropriated $75 billion from energy companies, defy...