U.S. Chamber Sues New York Over Costly Retroactive Liability Law, Cautions Against Similar Action from Other States

WASHINGTON, D.C. — The U.S. Chamber of Commerce, along with the American Petroleum Institute, the National Mining Association, and the Business Council of New York, filed a lawsuit against the state of New York over its new retroactive liability law, which attempts to extract billions of dollars from energy companies lawfully operating in the state going back 25 years. The lawsuit, which was filed in the U.S. District Court for the Southern District of New York, argues that the U.S. Constitution precludes the new law and that the law is preempted by the Clean Air Act.

New York is the latest state to attempt to regulate a global issue best left to the federal government. In December 2024, the Chamber challenged a similar law in Vermont.

Retroactively imposing massive financial penalties on companies providing lawful and necessary products could raise energy costs for consumers in New York and lead to higher prices overall for products that are produced or transported thanks to energy.

“Reliable, affordable energy helps power economic growth and enhances the quality of life for American families and communities. It defies logic that New York would pursue massive retroactive penalties from companies who are meeting consumer and business demand for this essential resource,” said Marty Durbin, president of the U.S. Chamber’s Global Energy Institute. “This law is not only illegal and misguided, but it will likely increase the cost of energy, placing an unnecessary burden on New Yorkers and consumers nationwide, especially during a time of already high prices.”

“The potentially enormous costs this law could unleash on families and communities should serve as a cautionary tale to other states considering similar legislation and encourage them to change course,” Durbin continued. “We are confident the courts will strike down this misguided effort that could raise prices on working families.”

California, Connecticut, Hawaii, Maryland, Massachusetts, New Jersey, and Oregon are among the states considering comparable legislation.