As the impacts of climate change become more visible and severe, states across the country have started passing bold new laws to make the biggest polluters pay for the damage they have caused. But the oil industry is not backing down. Instead, oil and gas companies are using their political connections, legal muscle, and millions in campaign contributions to fight these state laws in court and in Congress. With Donald Trump back in the White House, fossil fuel executives believe they have a powerful ally who can help protect their interests.
At the center of the conflict is a growing number of state-level “climate superfund” laws. These laws are designed to make oil companies pay for the cost of rebuilding after climate disasters like floods, wildfires, and hurricanes, which scientists agree are becoming worse because of greenhouse gas emissions. Companies like Exxon, Chevron, Shell, and BP are facing lawsuits and potential financial penalties in the billions of dollars.
What Are Climate Superfund Laws and Why Are Oil Companies Against Them?
In 2023, New York passed the Climate Change Superfund Act. This law requires companies that produced the most greenhouse gas emissions between 2000 and 2024 to pay a combined $3 billion each year for the next 25 years. The money will go toward fixing infrastructure and protecting communities from the effects of extreme weather events linked to climate change. These projects include restoring wetlands, improving storm water systems, and adding energy-efficient cooling systems to buildings.
Vermont passed a similar law, and other states such as California, Massachusetts, and New Jersey are considering doing the same. These laws are modeled after the federal Superfund program from 1980, which required polluters to pay for the cleanup of toxic waste.
Oil companies argue that these new laws are unfair. They say it is wrong to charge them for emissions that were legal when they occurred and that only the federal government has the authority to regulate pollution. In a statement, the American Petroleum Institute said, “We will continue to make that case in the courts, and we are exploring all options to correct this overreach by certain states.”
The companies are also afraid of being treated the way tobacco companies were treated in the past. They remember how Big Tobacco was sued for billions of dollars after hiding the health risks of smoking. Fossil fuel companies are trying to avoid a similar outcome.
Trump Steps In
At a White House meeting in March 2025, executives from some of the world’s largest oil companies met with President Trump to express their concerns about state climate laws and the dozens of lawsuits they are facing. The chief executives of Exxon, Chevron, ConocoPhillips, and Hess were all present. According to people familiar with the meeting, Trump appeared to agree with the industry that the state laws could “undermine his energy-dominance agenda” and signaled that he would “consider ways his administration could help the industry.”
During his first term, Trump rolled back numerous environmental regulations, opened more public lands to oil drilling, and promoted natural gas exports. Now, in his second term, the industry is counting on him to go even further. Fossil fuel interests spent tens of millions of dollars supporting his campaign, and they are hoping to cash in on that investment.
One idea being floated is for the Department of Justice to either file its own lawsuits against states like New York and Vermont or to support the oil companies in court by filing legal briefs on their behalf. Another idea is for Congress to pass a law that gives oil companies legal immunity from climate-related lawsuits.
Legal Immunity and the Fight in Congress
The idea of legal immunity is especially worrying to environmental advocates. Nearly 200 organizations, including the Sierra Club and Earthjustice, recently sent a letter to Congress urging lawmakers to reject any attempt to shield oil companies from responsibility. “We have reason to believe that the fossil fuel industry and its allies will use the chaos and overreach of the new Trump administration to attempt yet again to shield themselves from facing consequences for their decades of pollution and deception,” the letter warned.
The oil industry has pushed for legal immunity before. In 2005, Congress gave gun manufacturers protection from most lawsuits. A similar shield for fossil fuel companies would prevent states and cities from holding them accountable for climate damage. Some insiders worry the industry may try to sneak the provision into a larger spending bill or another piece of legislation.
Michael Gerrard, a climate law expert at Columbia University, said that the fossil fuel industry might even try to get Congress to block all state-level climate superfund laws. “If they are seeking a liability waiver, they might also seek congressional action precluding the state climate superfund laws,” he explained.
Lawsuits and Resistance
Meanwhile, legal battles are unfolding across the country. Twenty-two states, led by West Virginia, are suing to block New York’s climate law. At a press conference, West Virginia Attorney General John McCuskey called the legislation an overreach, saying, “This lawsuit is to ensure that these misguided policies, being forced from one state onto the entire nation, will not lead America into the doldrums of an energy crisis.” Other states in the lawsuit include Texas, Kentucky, Oklahoma, and North Dakota.
The lawsuit argues that the Clean Air Act gives the federal government—not states—the power to regulate emissions. But environmental law professor Michael Gerrard pointed out that New York’s law does not try to regulate pollution levels. “It seeks compensation for past emissions,” he said, suggesting that the courts will have to decide if this is a legal distinction.
New York Governor Kathy Hochul defended the law, saying, “Corporate polluters should pay for the wreckage caused by the climate crisis—not everyday New Yorkers.”
A Critical Opportunity for Change
The return of Donald Trump to the presidency has given the fossil fuel industry a powerful supporter in Washington. With Republican control of Congress, oil companies see a chance to reshape the rules and avoid accountability. But many environmental groups, legal experts, and state leaders are pushing back.
They argue that this is a moment of opportunity—not just for holding polluters accountable but also for shifting the nation toward clean energy and climate justice. As the effects of climate change become more visible, voters are demanding action. The success of state superfund laws shows that the public is no longer willing to let corporations pollute without consequence.
“Pretending that coal and gas are the only way to meet growing energy demands is like insisting landlines are the future of communication,” said Vanessa Fajans-Turner, the executive director of Environmental Advocates NY.
Liz Krueger, the New York state senator who sponsored the Superfund law, emphasized what is at stake. “That’s over $65,000 per household, and that’s on top of the disruption, injury and death in every corner of our state, principally caused by the product these companies produce,” she said. “No lawsuit will change that.”
FAM Editor: Tables are turning and the Trump Administration is nudging the legal system toward more energy. Elections have consequences, and the elected are making the business environment better for business.
