A federal judge ruled Wednesday that New York’s attempt to make fossil fuel companies pay up $75 billion to combat climate change was unconstitutional, delivering a victory to the Trump administration.
Judge P. Kevin Castel, a George W. Bush appointee, said the state trampled on Congress’ powers to regulate interstate and foreign commerce.
He issued a permanent injunction against the law.
“The court agrees with the United States that, under decisions binding on this court, the Climate Act impermissibly regulates interstate greenhouse gas emissions and is thus preempted,” he wrote.
New York’s 2024 law had sought to create a “superfund” to pay for climate change mitigation projects in the state, with the money coming from firms that engaged in extracting or refining crude oil this century.
The Trump administration had sued to block the law.
Another federal judge in New York had issued a preliminary injunction several weeks ago against the law.
Judge Castel’s ruling is a more permanent blockade.
It came a day after a federal court in Michigan shot down a state antitrust lawsuit against four major energy companies.
Michigan had argued the companies sought to suppress renewable energy and forced higher prices for fossil fuels.
But the judge said the state couldn’t connect higher prices to the firms’ alleged collusion.
The Trump Justice Department, which had sided with the energy firms, hailed that ruling.
“This dismissal should make states rethink the use of lawfare to enact climate change policy,” said Associate Attorney General Stanley E. Woodward Jr.
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