Climate activists, frustrated by unsuccessful climate lawsuits, have increasingly turned to “climate superfund” legislation as a new tool to make oil and gas companies pay for climate damages.

Notably, these state-level bills seek to impose hefty fees or fines on energy producers for the costs of climate change, a punitive measure for energy producers for decades-old, lawful activities. But this punishing dynamic backfired when confronted with reality. In multiple states, climate superfund proposals have run ashore amid bipartisan concern that they would do more harm than good, particularly by driving up energy costs for consumers.

As of early 2026, only Vermont and New York have actually enacted climate superfund laws, both in 2024, with a dozen other states introducing similar bills, including California, New Jersey, Massachusetts, Connecticut, Hawaii, Maryland, Virginia, to name a few. However, about half of these attempts have stalled or died in state legislatures. (RELATED: Famed Climate Scientist Who Sued Critics Wiped From Associated Press Article)

New Jersey’s experience is a prime example. Lawmakers there introduced an ambitious Climate Superfund Act in 2025, but even some initial supporters grew uneasy once they considered the practical impacts.

In a Senate Budget Committee hearing on........

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