By Hank Russell
A court recently ruled that New York State cannot force energy companies to pay for damages they allegedly caused to the environment.
The U.S. District Court for the Northern District of New York recently ruled that the state of New York may not impose strict liability on energy companies for their alleged contributions to global greenhouse gas emissions. They also said that the state’s Climate Superfund Act was unconstitutional.
As previously reported in Long Island Life & Politics, Governor Kathy Hochul signed the New York Climate Superfund Act into law in December 2024. It imposes strict fines on companies that impacted the environment in New York communities and bans hydraulic fracturing, or “fracking.”
In March 2025, The U.S. Chamber of Commerce’s Global Energy Institute, the New York Business
Council, the American Petroleum Institute, and the National Mining Association filed a lawsuit over the Act, which would force fossil fuel companies to pay $75 billion for releasing carbon emissions, LILP also reported. The plaintiffs claimed these costs will be passed on to the consumers.
The following month, President Donald Trump signed an executive order that prevented states from imposing what he said were undue burdens on energy companies. “[W]hen States subject energy producers to arbitrary or excessive fines through retroactive penalties or seek to control energy development, siting, or production activities on Federal land, American energy suffers,” Trump wrote.
On August 31, 2026, Chief U.S. District Judge Brenda K. Sannes wrote in her decision that the state’s attempt to recover any monies from a foreign energy producer “would be preempted by the foreign affairs doctrine” and the Act is “‘simply beyond the limits of state law.’”
“The court held that federal law preempts New York’s attempt to regulate global environmental concerns, marking a significant step in advancing President Trump’s energy agenda and lowering energy prices for Americans,” said Associate Attorney General Stanley Woodward. “We will continue to fight to uphold the rule of law, unleash American energy, and protect our national security.”
LILP reached out to Hochul’s office for comment.
“Taxpayers shouldn’t have to foot the bill for damages caused by polluters,” Ken Lovett, Hochul’s senior communications advisor on energy and environment, said. “We are reviewing the decision to determine possible next steps.”