By Jonathan Stempel
NEW YORK (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, 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)
