Business groups challenge controversial New York climate law in federal court

By 
 March 3, 2025

Last year saw New York Democratic Gov. Kathy Hochul sign the Climate Superfund Act, a controversial law which forces oil, natural gas, and coal companies to pay $75 billion.

However, a group of business and trade groups have moved to challenge the Democrat-supported legislation in federal court. 

Legislation said to punish energy firms for climate change

The New York Post reported that Marty Durbin serves as president of the U.S. Chamber of Commerce's Global Energy Institute, which is one of the organizations suing Hochul's administration.

He maintains that the law is aimed at punishing energy companies for supposedly contributing to climate change, something which is prohibited under federal law.

Specifically, the lawsuit alleges that fossil fuel firms are being targeted for their "global, lawful greenhouse gas emissions based on completely unsubstantiated 'attribution science.'"

What's more, Durbin warns that the massive levy will ultimately be passed on to consumers in the form of higher gas and heating bills.

"This law is not only illegal and misguided, but it will likely increase the cost of energy, placing an unnecessary burden on New Yorkers and consumers nationwide — especially during a time of already high prices," Durbin was quoted as telling the Post.

Plaintiffs: Other state will be affected by law

The law is also being challenged by the National Mining Association, the American Petroleum Institute, and the New York State Business Council, whose vice president is Ken Pokalsky.

"We’ve always argued that this is bad policy for New York, and we intend to seek reversal through all available avenues," Pokalsky said.

The Post noted how the lawsuit accuses New York of seeking "to reach back decades in time and impose significant monetary penalties."

It stresses further that the Climate Superfund Act could subject "other States and consumers to increased energy costs, while reaping the financial benefits to pay for ‘climate change adaptive infrastructure.'"

Spokesperson says governor looks forward to "defeating Big Oil"

Paul DeMichele is a spokesperson for Hochul, and he expressed confidence that the legislation in question will be upheld.

What's more, DeMichele boasted that the governor "believes corporate polluters should pay for the damage done to our environment—not everyday New Yorkers."

"We look forward to defending this landmark legislation in court and defeating Big Oil once again," the spokesperson went on to declare.

" A free people [claim] their rights, as derived from the laws of nature."
Thomas Jefferson