In the wake of heightened concerns around the cost of living, Democrats have framed their campaign platforms around energy affordability, particularly by pledging to lower gasoline prices and utility bills.
Democrats that previously backed aggressive climate policies, like Rhode Island Governor Dan McKee (D), who signed the state’s 2021 Act on Climate into law, has proposed to delay the state’s renewable energy standard to “provide relief” on “growing energy bills.” Even progressive stalwarts, like Bernie Sanders-backed Democratic Congressional Candidate Randy Villegas, are calling for aggressive action on elevated gas prices, proclaiming in a recent television ad:
“We shouldn’t have to dream of being able to fill up our tanks. We should be able to dream of owning the whole damn truck.”
However, despite their public pledges, Democrats are quietly working to reinvigorate laws that will cripple the American energy industry and increase costs for consumers.
Just last Friday, the State of New York moved to appeal Southern District of New York Judge P. Kevin Castel’s ruling from September that struck down the state’s climate superfund law, continuing their effort to push through a $75 billion tax on American energy companies.
New York’s decision to appeal the ruling and keep their massive tax hike alive comes on the heels of Gov. Kathy Hochul’s rolling back the state’s landmark energy and climate law as she acknowledged “there’s going to be enormous costs.”
The Story of the Superfund
New York’s Climate Change Superfund Act passed at the tail end of the 2024 legislative session. While the bill initially faced dim prospects, Assembly leadership pulled it “off the shelf,” reportedly to plug a potential budget shortfall and appease climate activists.
Up to the last minute, Democratic leaders, including Assembly Speaker Carl Heastie (D), objected to the legislation over concerns that it would raise utility bills:
“Asking these companies to pay more, it’s going to be, of course, taken out on the ratepayer.”
After passing both chambers, the bill was subsequently signed by Governor Hochul.
A coalition of states and trade organizations sued, followed by the EPA. After meandering through the courts, Chief Judge Brenda Sannes of the U.S. District Court for the Northern District of New York granted summary judgment to the coalition of 22 states and business groups challenging the law in West Virginia v. James in August. Judge Sannes concluded that New York’s sweeping scheme is preempted by federal law and intrudes on the federal government’s authority over foreign affairs.
At the center of Judge Sannes’ ruling is the Second Circuit’s 2021 rejection of New York City’s (first) climate lawsuit, yet state legislators in Albany passed a statute doing the same thing anyway.
Judge Sannes saw right through it:
“There is very little daylight left to distinguish the Climate Act from the common-law claims in City of New York.”
“It makes no difference that the obligation to pay compensation stems from a past harm, because the activity that is subject to the compensation scheme—domestic greenhouse gas emissions—is ‘potentially subject to the exclusive federal regulatory scheme.’”
One month later, the U.S. District Court for the Southern District of New York also granted summary judgement and invalidated the law.
Actions Speak Louder than Words
Now, New York officials are appealing the Southern District’s ruling. Last Friday, the state filed a notice with the U.S. District Court for the Southern District of New York, advising that it would appeal the ruling to the U.S. Court of Appeals for the Second Circuit.
Bottom Line: With just a week until Election Day, Democratic officials in New York are showing their steadfast commitment to taxing American energy companies, ultimately leading to increased costs for consumers—even as Americans grapple with an affordability crisis. Despite the rhetoric around affordability, these elected officials are not committed to embracing affordability—but rather doubling down on their campaign against the energy industry.
