On Thursday, New York was sued by 22 U.S. states over a new law requiring fossil fuel companies to contribute $75 billion over 25 years to a fund aimed at addressing climate change damage. The lawsuit, led by West Virginia and supported by Republican attorneys general, argues that the law unfairly punishes energy companies for past emissions, even though these companies complied with laws at the time.
The states involved in the lawsuit claim that New York’s law violates the U.S. Constitution and conflicts with the federal Clean Air Act. They also warn that forcing coal, oil, and natural gas companies to make substantial payments could lead to job losses and harm the economy.
New York’s new law, signed by Democratic Governor Kathy Hochul on December 26, creates a fund that fossil fuel companies will be required to contribute to, beginning in 2028. It is the second such law in the U.S., following Vermont’s law, which went into effect last year.
West Virginia Attorney General John McCuskey criticized the law during a press conference, calling it a politically-driven move by left-leaning states like California, New York, and Vermont. He emphasized that the U.S. should focus on staying competitive with countries like China and India, which continue to build coal and gas-fired power plants.
The lawsuit names New York Attorney General Letitia James and two other state regulators as defendants. James’ office declined to comment, and other regulators did not immediately respond to inquiries.
A spokesperson for Governor Hochul defended the law, stating that corporate polluters should bear the financial responsibility for the damage caused by climate change, not ordinary New Yorkers. The governor’s office expressed confidence in defending the law in court.
The lawsuit also includes three coal trade groups and Alpha Metallurgical Resources, a major coal mining company. The case is being filed in federal court in Albany, New York.
Under the new law, fossil fuel companies will be required to contribute $3 billion annually to the fund starting in 2028. Contributions will be based on the amount of greenhouse gases companies emitted between 2000 and 2018. The money will be used to build infrastructure aimed at protecting communities and coastlines from the effects of climate change, such as extreme heat and flooding.
In December, the U.S. Chamber of Commerce and the American Petroleum Institute also filed a lawsuit against Vermont, attempting to block that state’s climate superfund. That case is still pending.
West Virginia, a major coal-producing state, has long been a stronghold for the Republican Party, with President Donald Trump winning 70% of the vote in the state in the 2020 election.
Read more:
