The U.S. Chamber of Commerce and a leading oil and gas industry trade association have initiated legal action against Vermont regarding a recent law that mandates fossil fuel companies to bear responsibility for a portion of the long-term damage caused by climate change. The lawsuit, filed in federal court on Monday, seeks to halt the enforcement of the law, which was enacted last year. Vermont became the pioneer state to implement this legislation following severe summer flooding and other extreme weather events. The state is in the process of calculating the expenses related to climate change dating back to January 1, 1995.
The lawsuit contends that the U.S. Constitution prohibits the law and asserts that it conflicts with the federal Clean Air Act. Additionally, it argues that the law infringes on interstate commerce regulations by unfairly targeting major energy corporations located outside Vermont. The plaintiffs, the Chamber and the American Petroleum Institute, argue that the federal government is already taking action on climate change. They also argue that accurately attributing the impact of emissions from individual sources over decades is impractical.
Tara Morrissey, senior vice president and deputy chief counsel of the Chamber’s litigation center, criticized the law, stating that attempting to impose retroactive penalties for conduct regulated under the Clean Air Act is illegitimate and goes against the federal government’s jurisdiction. Vermont’s penalties, she argues, will ultimately raise costs for consumers nationwide. A spokesperson for Vermont’s Agency of Natural Resources mentioned that they had not received formal notification of the lawsuit.
Anthony Iarrapino, a lobbyist with the Conservation Law Foundation in Vermont, accused the fossil fuel industry of trying to evade accountability for the harm caused by their products. He highlighted that other states are following Vermont’s example in holding major oil companies responsible for the costs associated with climate change-induced disasters.
Under the law, the Vermont state treasurer, in collaboration with the Agency of Natural Resources, is required to submit a report by January 15, 2026, detailing the total expenses incurred by Vermonters due to greenhouse gas emissions from 1995 to 2024. The assessment will cover various sectors including public health, natural resources, agriculture, and economic development. The state will utilize federal data to determine the greenhouse gas emissions attributed to fossil fuel companies.
The law adopts a polluter-pays approach that affects companies involved in fossil fuel extraction or oil refining responsible for over 1 billion metric tons of greenhouse gas emissions during the specified period. The funds collected could be utilized for initiatives like improving stormwater drainage systems, enhancing infrastructure, and implementing energy-efficient upgrades in buildings. The model is inspired by the federal Superfund program.
Vermont’s innovative pollution cleanup program has captured the attention of other states, most notably New York. Governor Kathy Hochul of New York recently enacted a law mirroring Vermont’s approach, signaling a growing trend towards more stringent environmental regulations across the country.
Under the New York law, companies that are identified as significant contributors to greenhouse gas emissions are now required to contribute financially to a state-managed fund. This fund is designated for infrastructure projects aimed at mitigating and preventing the adverse effects of climate change. The companies deemed to be the largest greenhouse gas emitters during the period from 2000 to 2018 will be subject to fines as part of this initiative.
This new legislation reflects a proactive stance from New York in addressing the urgent challenges posed by climate change. By holding corporations accountable for their environmental impact and requiring them to invest in solutions, the state is taking concrete steps towards building a more sustainable future.
The implementation of such laws not only serves as a deterrent to companies engaging in harmful environmental practices but also provides crucial funding for vital infrastructure projects. These initiatives are essential for bolstering resilience against the increasingly severe impacts of climate change, such as rising sea levels, extreme weather events, and disruptions to ecosystems.
The move by New York to follow Vermont’s lead underscores the importance of collaboration and shared responsibility in tackling environmental issues. By adopting proven strategies and working together towards common goals, states can amplify the impact of their efforts and drive meaningful progress in the fight against climate change.
As more states recognize the pressing need to address environmental concerns, we can expect to see a wave of similar legislation being introduced across the nation. This growing momentum towards greater environmental protection signals a positive shift towards a more sustainable and resilient future for all.
