Coalition of 22 States Sue New York Attorney General Over Climate Superfund Law

New York Attorney General Letitia James speaks during a press conference in the Manhattan borough of New York City, on Feb. 16, 2024. David Dee Delgado/Reuters

New York is being sued by a coalition of 22 states who contend that a new law forcing a small group of major energy producers to retroactively pay for the costs of alleged climate change damage is unconstitutional.

The lawsuit was filed in the U.S. District Court for the Northern District of New York Albany Division on Feb. 6.

It lists state Attorney General Letitia James, Interim Commissioner of the New York State Department of Environmental Conservation Sean Mahar, and Acting Tax Commissioner Amanda Hiller as defendants.

West Virginia Attorney General JB McCuskey is leading the coalition of states challenging New York’s Climate Change Superfund Act, according to a statement from his office.

“The iconic New York City skyline was built with the blood, sweat and labor of the men and women of our coalfields—from the steel in their skyscrapers, down to the electricity they use every day,” McCuskey said.

“The level of ungratefulness from the elites in New York for the sacrifices that continue to be made to give them the lavish lifestyle they enjoy is beyond the pale.”

The attorney general said the lawsuit seeks to ensure that “these misguided policies, being forced from one state onto the entire nation, will not lead America into the doldrums of an energy crisis, allowing China, India and Russia to overtake our energy independence,”

New York’s Climate Change Superfund Act was signed into law by Gov. Kathy Hochul in December 2024.

The measure established a “recovery” program under which companies that have “contributed significantly” to greenhouse gas emissions must pay $3 billion annually into a superfund for climate change damage allegedly done from 2000 to 2018.

The companies would be required to make the payments for the next 25 years; amounting to a total of $75 billion.

The legislation applies to companies that the state’s Department of Environmental Conservation considers responsible for more than 1 billion tons of greenhouse gas emissions during the 18-year period.

According to the legislation, the money deposited into the fund will be used to pay for new or upgraded infrastructure, such as coastal wetlands restoration and stormwater drain systems; support for programs addressing climate-driven public health challenges; and responses to extreme weather events, among others.

Attorneys General Condemn ‘Overreach’

“Based on decades of research it is now possible to determine with great accuracy the share of greenhouse gases released into the atmosphere by specific fossil fuel companies over the last 70 years or more, making it possible to assign liability to and require compensation from companies commensurate with their emissions during a given time period,” the legislation states.

The measure states that New York will likely have to spend “several hundred billion dollars” through 2050 on climate adaptation investments.

In their lawsuit, the attorneys general called the legislation politically motivated “overreach” and accused New York of trying to force energy producers and consumers in other states “to subsidize certain New York-based ‘infrastructure’ projects, such as a new sewer system in New York City.”

They argued that the energy producers fully complied with federal law and “could not have reasonably expected that they would be punished for their lawful behavior.”

According to the lawsuit, the superfund is preempted by the federal Clean Air Act, and forcing energy producers to pay the billions of dollars could leave them with no choice but to cease operating, resulting in massive job losses.

“The State of New York believes it can seize control over the makeup of America’s energy industry,” the lawsuit states. “In an unprecedented effort, New York has set out to impose tens of billions of dollars of liability on traditional energy producers disfavored by certain New York politicians.”

Joining McCuskey in the lawsuit are attorneys general from states including Alabama, Georgia, Iowa, Kentucky, Louisiana, Mississippi, South Dakota, Texas, and Wyoming, among others.

Other plaintiffs include three coal trade groups and Alpha Metallurgical Resources, a large coal miner.

A spokesperson for Hochul told Reuters that the governor “believes corporate polluters should pay for the wreckage caused by the climate crisis—not everyday New Yorkers.”

“We look forward to defending this landmark legislation in court,” the spokesperson said.

The Epoch Times has contacted James’s office for comment.

Reuters contributed to this report.