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Brenda Sannes strikes down New York climate superfund law requiring fossil fuel companies to pay $75 billion in damages

A federal judge ruled that New York State cannot enforce its Climate Change Superfund Act, a law signed by Governor Kathy Hochul in December 2024. Chief U.S. District Judge Brenda Sannes stated that the law was preempted by the federal Clean Air Act and fell outside the jurisdiction of state law. The act sought to collect $75 billion from fossil fuel companies over 25 years to fund infrastructure projects, such as flood barriers and drainage upgrades, to mitigate the effects of climate change. Judge Sannes noted that the law was an unusual and sweeping statute that addressed a uniquely international problem of national concern. The administration announced that the ruling supports the goal of protecting American energy from state overreach. The Department of Justice stated that the law would have expropriated $75 billion from energy companies during an energy emergency in defiance of federal law. The decision was reached after a lawsuit filed by a coalition of Republican-led states, business groups, and fossil fuel interests. While the administration commended the ruling, the governor's office is currently reviewing the decision to determine next steps.

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