New York sued by 22 US states over $75 billion climate superfund (updated)

Alpha Metallurgical Resources

06/02/2025 19:01

(Recasts with additional states suing; adds New York governor's
office, more plaintiffs, accusations, description of New York
law, byline)

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      Republican attorneys general oppose New York 'overreach'
    

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      Lawsuit says superfund could cost jobs
    

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      New York says 'corporate polluters' should pay 
    

  
    By Jonathan Stempel
       NEW YORK, Feb 6 (Reuters) - New York was sued on
Thursday by 22 other U.S. states over a new law requiring fossil
fuel companies to contribute $75 billion over 25 years into a
fund that will pay for damage caused by climate change.
    Led by West Virginia and all with Republican attorneys
general, the 22 states called New York's law a
politically-motivated "overreach" that punishes traditional
energy companies for emitting greenhouse gases many years ago
even though they complied fully with applicable laws.
    They said the collection of hefty payouts from coal, oil and
natural gas producers violates the U.S. Constitution and is
preempted by the federal Clean Air Act, and could wipe out
thousands of jobs if producers are forced to shut down.
    New York became the second U.S. state to create an
industry-financed "superfund" to address climate change, under a
law signed by Democratic Governor Kathy Hochul on December 26.
Vermont's superfund took effect last July.
    "We're not going to allow left-wing states like California,
New York, Vermont to dictate to the American people how they're
going to get their electricity," West Virginia Attorney General
John McCuskey said at a press conference.
    "We need to stay ahead of countries like China, India and
Russia as they move forward with their coal and gas-fired power
plants," he added.
    The lawsuit names New York Attorney General Letitia James
and two other state regulators as defendants. James' office
declined to comment. The other regulators did not immediately
respond to requests for comment.
    A spokesperson for Hochul said the governor "believes
corporate polluters should pay for the wreckage caused by the
climate crisis--not everyday New Yorkers. We look forward to
defending this landmark legislation in court."
    West Virginia is second among U.S. states in coal
production, the U.S. Energy Information Administration said.
    Other plaintiffs include three coal trade groups and Alpha
Metallurgical Resources  AMR.N , a large coal miner. The lawsuit
is being filed in federal court in Albany, New York, the state's
capital.
    New York's law requires fossil fuel companies to contribute
$3 billion annually starting in 2028 to the superfund, divided
based on the amount of greenhouse gases they emitted into the
atmosphere between 2000 and 2018.
    The law applies to companies that the state's Department of
Environmental Conservation considers responsible for 1 billion
tons of greenhouse gas emissions during that period. 
    Money would help build infrastructure such as roads, water
systems and sewage systems to protect communities and coastlines
from weather events such as extreme heat and flooding.
    On Dec. 30, the U.S. Chamber of Commerce and the American
Petroleum Institute sued Vermont to block that state's
superfund. That case remains pending.
    President Donald Trump, a Republican, won 70% of the West
Virginia vote in November's election.

 (Reporting by Jonathan Stempel in New York; Editing by Daniel
Wallis)
 ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.net))