A federal judge ruled that New York cannot enforce its Climate Change Superfund Act, which sought to require fossil fuel companies to pay $75 billion over 25 years to fund climate adaptation projects.

Chief U.S. District Judge Brenda Sannes of the Northern District of New York sided with a coalition of 22 Republican state attorneys general, industry groups including the U.S. Chamber of Commerce, and the U.S. Department of Justice in finding the law preempted by federal authority.

Sannes, an appointee of former President Barack Obama, held that the 2024 state law conflicts with the Clean Air Act, which gives the federal Environmental Protection Agency primary authority over greenhouse gas emissions. The ruling also found that demands against foreign producers would violate the foreign affairs doctrine.

The law, signed by Democratic Gov. Kathy Hochul, would have required companies responsible for more than 1 billion tons of emissions between 2000 and 2018 to contribute a collective $3 billion annually starting in 2028. New York was the second state after Vermont to enact such a measure.

Plaintiffs argued the statute amounted to state-level regulation of interstate and international emissions in an area long dominated by federal law. The Justice Department filed a statement of interest supporting the challenge, consistent with efforts to prevent state overreach on energy policy.

The decision marks a significant setback for state efforts to shift climate-related costs onto energy producers. Similar challenges continue against Vermont’s law.

New York officials said they are reviewing the ruling for possible next steps, while supporters of the decision described it as a win for uniform national energy policy and affordable energy production.