Uncategorized

The New York State Climate Change Superfund Act and its National Impact

Jahneka Cassells

Class of 2026

New York has spent billions combating climate change and will continue to do so. At the end of 2024, New York was the second state (behind Vermont) to enact a Climate Change Superfund Act. The Act, signed into law by Governor Kathy Hochul, establishes a Climate Change Adaptation Cost Recovery Program that holds major greenhouse gas contributors financially accountable. The program mandates companies that have or will significantly contribute to climate-warming emissions to bear a portion of the expenses associated with necessary infrastructure investments for climate change adaptation. Moreover, the Act aims to distribute the financial burden of climate resilience equitably so that those most responsible for exacerbating climate change must substantially fund adaptive measures–instead of taxpayers.

The Act requires corporations identified as major greenhouse gas contributors between 2000 and 2024 to collectively contribute approximately $3 billion annually over a 25-year period. As part of her 2025 State of the State address, Governor Hochul also announced a $1 billion investment to address the climate crisis. Additionally, the New York City FY 2024-2028 Capital Commitment Plan includes $18.5 billion for projects supporting flood resiliency and over $9.3 billion for projects supporting heat resiliency. 

Twenty-two states have filed a lawsuit against New York for its Climate Change Superfund Act. They claim that the Act infringes on federal authority by imposing significant fines on energy companies for activities conducted outside New York, interferes with the economic interests of other states, and unfairly penalizes energy producers for legal activities. The plaintiff states also claim the law would disrupt energy markets in their states, leading to reduced tax revenue and higher energy costs. Since New York imports 85% of its energy and is not home to most of the companies targeted by the law, the plaintiffs assert that the legislation unfairly protects New York’s interests. 
Despite ongoing legal challenges to New York’s Climate Change Superfund Act, several other states are considering passing similar legislation to address climate change. California, Maryland, and Massachusetts have proposed climate superfund laws modeled after those enacted by Vermont and New York. While New York’s Climate Change Superfund Act is a promising step toward ensuring polluters bear the costs of climate change, it faces significant legal challenges regarding its enforceability and effect on other states.