On February 6, 2025, a coalition of twenty-two states filed a lawsuit against New York, challenging the constitutionality of the Climate Change Superfund Act, which requires major energy producers to contribute $75 billion to a climate change fund.

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

This coalition is led by West Virginia Attorney General JB McCuskey, who argues that the law could precipitate an energy crisis and jeopardize national energy independence.

The lawsuit claims that New York is unfairly targeting a small group of energy producers for global greenhouse gas emissions, despite the historical contributions of fossil fuels to the state's economy and infrastructure.

Challengers argue that the law effectively forces energy producers and consumers from other states to subsidize New York's infrastructure projects, including improvements to its sewage system.

The plaintiffs also contend that New York lacks the authority to impose fines on companies legally extracting fossil fuels outside its state boundaries.

In response to the lawsuit, New York officials have emphasized the importance of the climate fund for enhancing the state's climate resilience and energy transition efforts.

Governor Kathy Hochul responded to the legal challenge on social media, stating, 'bring it on,' and her administration is committed to defending the legislation.

The Climate Change Superfund Act mandates payments from fossil fuel companies for damages attributed to emissions from 2000 to 2018, highlighting the historical significance of coal, oil, and natural gas to New York's economy.

State Senator Liz Krueger, who authored the legislation, expressed confidence that the law will withstand legal challenges due to its alignment with federal superfund programs and established pollution penalties.

A spokesperson for Governor Hochul reiterated the state's determination to defend the law in court against opposition from the energy industry.

The funding from the Climate Change Superfund Act is intended to repair and enhance New York's infrastructure, particularly projects aimed at coastal wetland restoration and stormwater drainage improvements.