United States of America v. New York
Overview
Overview
The Trump administration sued New York over a state law, Superfund Act, that require oil companies to contribute to a fund that pays for damages caused by climate change.
The Issue
Issue
Whether New York's Superfund Act requiring oil companies to contribute to a climate damage fund violates the Dormant Commerce Clause, is preempted by federal law, or constitutes an uncompensated taking of property.
The Rules
Rule
State laws that discriminate against or unduly burden interstate commerce are subject to strict scrutiny under the Dormant Commerce Clause. State laws may also be preempted by federal law or violate the Fifth Amendment if they effect an uncompensated taking without rational basis.
The Application
Analysis
New York's law requires oil companies to fund climate-related damages through mandatory contributions. The government argues this either singles out interstate commerce, conflicts with federal authority over energy regulation, or takes property without compensation or legitimate justification.
The Conclusion
Conclusion
On September 23, 2026, Judge P. Kevin Castel granted the United States summary judgment and struck down New York's Climate Change Superfund Act. The court held that the Act, which imposed strict liability on fossil fuel producers for their share of historical greenhouse gas emissions from 2000 to 2024, is preempted by the Clean Air Act because it impermissibly regulates interstate greenhouse gas emissions, an area the Second Circuit held in City of New York v. Chevron Corp. is occupied by federal law. The court separately held that the Act is field-preempted under the foreign affairs doctrine, reasoning that addressing global greenhouse gas emissions is a subject of federal foreign policy and that applying the law to emissions generated outside the United States intrudes on that policy. Having resolved the case on those two grounds, the court did not reach the government's Commerce Clause or Due Process claims and dismissed them without prejudice. The court declared the Climate Change Superfund Act unconstitutional and permanently enjoined New York officials from enforcing it. New York may appeal to the Second Circuit.
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