NJBIA Deputy Chief Government Affairs Officer Ray Cantor issued the following statement on Monday after a federal judge ruled New York cannot enforce its 2024 Climate Superfund Law, which seeks to impose $75 billion retroactive penalty on global energy producers, because the New York statute is pre-empted by federal law.

The decision by Chief Judge Brenda Sannes of the U.S. District Court for Northern New York is being closely watched in New Jersey, where a similar bill to impose a $50 billion retroactive penalty on energy producers is pending before the state Legislature. 

“As we have been predicting, a U.S. district court in New York reviewing its Climate Superfund law, which is legally indistinguishable from New Jersey's proposed legislation (S2338/A3735), found that statute unconstitutional on numerous grounds, including preemption under the federal Clean Air Act.

“In invalidating the law by summary judgment, the court stated that case law is clear that the ‘Climate Act operates in an area where federal law has governed for over a century. . . .Thus, the Court finds that the Climate Act is simply beyond the limits of state law.'

“We urge the supporters of this legislation in New Jersey to recognize that this bill is unfair, punitive to consumers, damaging to New Jersey jobs, and now, clearly unconstitutional. We look forward to having a productive conversation with the Legislature and the Sherrill administration on real solutions to climate change and resiliency.”