Climate 'Superfund' Bills Spread Nationwide, Despite Legal Battles

Industry groups gear up to fight state-level efforts to force oil companies to pay for climate change damage.

Published on Feb. 6, 2026

Got story updates? Submit your updates here. ›

Climate 'superfund' bills, based on the principle that oil companies should pay costs associated with climate change, are gaining ground in state legislatures around the country. Despite legal challenges to the only two states that have passed such laws so far, New York and Vermont, other states like Maine, Illinois, and New Jersey are proposing similar measures. Proponents argue the funds are necessary to finance urgent public projects like fortifying coastal areas against flooding, while industry groups call the bills an 'existential threat' and are gearing up for a legal showdown.

Why it matters

As the costs of recovering from climate-related disasters and undertaking adaptation measures strain municipal budgets, states are looking to 'climate superfund' laws as a way to force the biggest emitters of greenhouse gases to help pay for the damage. However, the legal validity of these laws remains uncertain, with industry groups mounting challenges that could set an important precedent.

The details

The climate 'superfund' laws borrow from the long-running federal Superfund program that requires companies to pay to clean up industrial pollution sites. New York's law requires the biggest emitters to collectively pay $75 billion over 25 years, while Vermont's directs officials to determine the financial penalties. Industry groups like the American Petroleum Institute have called the bills an 'existential threat' and are pushing for a Congressional liability shield, similar to the one that protects gun manufacturers.

  • In 2024, New York and Vermont passed the first climate 'superfund' laws.
  • Last week, a climate 'superfund' bill passed a committee vote in Maine.
  • Climate 'superfund' bills have also been recently introduced in Illinois and New Jersey, with one expected soon in Connecticut.

The players

New York

One of the two states that have passed climate 'superfund' laws so far, requiring the biggest emitters to collectively pay $75 billion over 25 years.

Vermont

One of the two states that have passed climate 'superfund' laws so far, directing officials to determine the financial penalties for the biggest emitters.

American Petroleum Institute

An industry group that has called the climate 'superfund' bills an 'existential threat' and is pushing for a Congressional liability shield, similar to the one that protects gun manufacturers.

Exxon

An oil company that has discussed the relationship between the climate 'superfund' laws and the lawsuits against the industry over their role in climate change.

Graciela Guzmán

An Illinois state senator who is sponsoring a climate 'superfund' bill, arguing that 'polluters' should 'have to pay in to the repairs' for the conditions of global climate change.

Got photos? Submit your photos here. ›

What they’re saying

“It's not a question as to the billions and billions of dollars that have to be spent to deal with resiliency' against climate-related threats. It's a matter of who's going to pay for it.”

— John McKeon, New Jersey State Senator (New York Times)

“So-called climate superfund proposals and extreme lawsuits would retroactively punish energy producers for simply meeting consumer demand. This is a distraction from the common-sense energy policies Americans want.”

— Dustin Meyer, Senior Vice President, American Petroleum Institute (New York Times)

“Polluters, as folks that are exacerbating the conditions of global climate change, should also have to pay in to the repairs.”

— Graciela Guzmán, Illinois State Senator (New York Times)

What’s next

The judge in the New York and Vermont cases will decide whether to uphold or block the climate 'superfund' laws passed in those states, which could set an important legal precedent for similar bills being considered in other states.

The takeaway

As the costs of climate change adaptation and disaster recovery strain state and local budgets, the legal battle over 'climate superfund' bills will be a key test of whether oil companies can be compelled to help pay for the damage caused by their greenhouse gas emissions, or if they will succeed in blocking these efforts through the courts.