A federal judge on Monday struck down New York's Climate Change Superfund Act, ruling that the 2024 law exceeded state authority by attempting to impose liability on energy companies for global greenhouse gas emissions.

U.S. District Chief Judge Brenda K. Sannes of the Northern District of New York held that the measure was preempted by the federal Clean Air Act and the foreign affairs doctrine. The 63-page decision found the law unenforceable because it operated in an area of dominant federal interest.

The statute, signed by Gov. Kathy Hochul in December 2024, would have required large fossil fuel companies to contribute a total of $75 billion over 25 years, or about $3 billion annually starting in 2028, based on their emissions from 2000 to 2018. The funds were intended for state projects addressing climate adaptation and mitigation.

Sannes relied on a 2021 Second Circuit ruling in City of New York v. Chevron, which dismissed a similar lawsuit by New York City against oil companies. The judge described the New York law as an "unusual and sweeping statute" designed to address a "uniquely international problem of national concern."

The ruling came in a case brought by 22 Republican-led states, industry groups including the U.S. Chamber of Commerce and the American Petroleum Institute, and others. The Trump administration filed a statement of interest supporting the plaintiffs and argued the law was preempted.

Associate Attorney General Stanley Woodward said the decision marks "a significant step in advancing President Trump’s energy agenda and lowering energy prices for Americans."

New York officials said they are reviewing the decision for possible next steps, including an appeal. Vermont, the only other state with a similar climate superfund law, faces parallel legal challenges.

The outcome prevents New York from enforcing the cost-recovery program against domestic and foreign energy producers and underscores limits on state efforts to regulate national and international emissions issues.