Federal judge says the state cannot charge major fossil-fuel producers for emissions tied to operations around the world.
OKLAHOMA CITY — Oklahoma Attorney General Gentner Drummond has won a federal court victory against a New York law that sought to collect $75 billion from major fossil-fuel producers for climate-related infrastructure projects.
Chief U.S. District Judge Brenda Sannes issued the ruling Monday in a lawsuit brought by 22 states, including Oklahoma. West Virginia led the case, which was joined with a separate challenge from oil, gas and mining industry groups.
“Climate Superfund laws threaten America’s energy independence by punishing energy producers for decades of prior energy production,” Drummond said. “Energy producers have followed the law and should not be hit with crippling, erroneous fines.”
The New York law required companies to pay a portion of the $75 billion based on emissions attributed to fossil fuels they extracted or refined from 2000 through 2024.
It applied to worldwide operations—not just activity in New York—and imposed liability even if a company had broken no environmental law. The money was intended to pay for upgrades to roads, wastewater plants and other infrastructure as New York prepared for the effects of climate change.
Why the judge rejected it
Sannes ruled that the federal Clean Air Act leaves regulation of interstate air pollution primarily to the federal government. New York could not create its own payment system based on emissions produced across the country and around the world, she concluded.
In her 63-page ruling, Sannes called the law “an unusual and sweeping statute” that was “simply beyond the limits of state law.”
She also ruled that applying it to foreign energy producers would interfere with the federal government’s control over foreign affairs.
The ruling may be appealed. Sannes ordered the parties to report by Sept. 14 on how they want to proceed.
