West Virginia and nearly two dozen other states are suing to block a New York climate law that requires fossil fuel companies to pay $75 billion over 25 years to mitigate damage from future climate disasters in the state, arguing that the measure is unconstitutional and creates a “slippery slope” for corporations.
The lawsuit was filed Thursday in New York federal court and is being led by West Virginia Attorney General JB McCusky. Twenty-one other states have signed on, including Texas, Alabama and Louisiana, all of which are home to oil, coal and natural gas giants. Tennessee-based mining company Alpha Metallurgical Resources is also listed as a plaintiff.
“These emissions were controlled by the federal government, regulated by the federal government and were produced legally,” said McCusky during a Thursday news conference announcing the lawsuit. “They are trying to go back and retroactively fine companies that were completely complying with all applicable federal laws.”
Gov. Kathy Hochul signed the bill known as the Climate Change Superfund Act in late December. The measure requires companies that have emitted the most greenhouse gases in the state to pay $75 billion to support state climate projects and recovery efforts from storms, fires and other disasters, which have become more intense and frequent due to climate change.
Under New York’s law, fossil fuel manufacturers are expected to pay roughly $3 billion annually into a state fund over the next 25 years, with individual companies’ contributions based on their total emissions between 2000 and 2018. Payments into the fund are expected to begin in 2026.
Paul DeMichele, a spokesman for Hochul, said she signed the law “because she believes corporate polluters should pay for the wreckage caused by the climate crisis — not everyday New Yorkers.” DeMichele added that the governor’s office looks forward to defending the landmark law in court and “defeating Big Oil once again.”
The New York climate law is part of a growing movement by states to hold private companies responsible for their contributions to the climate crisis. Vermont became the first state to pass a climate superfund law in May (it is also facing a legal challenge). Other states, such as California, Massachusetts and New Jersey, are exploring similar measures.
The law’s sponsors say they’re confident that the measure will withstand the lawsuit.
“Our law is solid, and I am confident that Attorney General Letitia James will defend it against these corporate attacks,” said Assemblyman Jeffrey Dinowitz, the lead sponsor of the Climate Change Superfund Act in the state Assembly. “New York families should not bear the costs of climate change while Big Oil gets a free pass.”
