MONTPELIER, Vt. (AP) — The U.S. Chamber of Commerce and a major oil and gas industry trade group are suing Vermont over its new law requiring fossil fuel companies to pay a share of the damages caused over decades by climate change.
The federal lawsuit filed Monday asks a state court to block Vermont from enforcing the law passed last year. Vermont became the first state in the country to pass this law after suffering catastrophic summer flooding and damage from other extreme weather. The state has been working to estimate the cost of climate change since January 1, 1995.
The lawsuit argues that the U.S. Constitution excludes the law and that state law is preempted by the federal Clean Air Act. It also argues that the law violates domestic and foreign commerce clauses by discriminating “against the important interests of other states by targeting large energy companies located outside of Vermont.”
The Chamber and the other plaintiff in the lawsuit, the American Petroleum Institute, argue that the federal government is already addressing climate change. And because greenhouse gases come from billions of individual sources, they say it’s impossible to “accurately and fairly” measure the impact of a particular entity’s emissions in a particular location over decades.
“Vermont wants to impose massive retroactive penalties going back 30 years for lawful out-of-state conduct that was regulated by Congress under the Clean Air Act,” said Tara Morrissey, senior vice president and deputy chief counsel. from the Chamber’s litigation center. “This is illegal and violates the structure of the U.S. Constitution: a state cannot attempt to regulate a global issue that is best left to the federal government. Vermont’s penalties will ultimately increase costs for consumers in Vermont and across the country.
A spokesperson for the state Natural Resources Agency said it has not been formally served with the lawsuit.
Anthony Iarrapino, a Vermont-based lobbyist for the Conservation Law Foundation, said the lawsuit was the fossil fuel industry’s way of “trying to avoid liability for the damage their products have caused to Vermont and the beyond”.
“More states are following Vermont’s lead, holding big oil companies accountable for disaster recovery and cleanup costs from severe climate change-fueled storms, ensuring that families and businesses don’t ‘will no longer have to pay the entire bill over and over again,’ added Iarrapino.
By law, the Vermont State Treasurer, in consultation with the Natural Resources Agency, must publish a report by January 15, 2026, on the total cost to Vermonters and the State of greenhouse gas emissions. greenhouse gases from January 1, 2026. 1995 to December 31, 2024. The assessment would examine the effects on public health, natural resources, agriculture, economic development, housing and other areas. The state would use federal data to determine the amount of covered greenhouse gas emissions attributed to a fossil fuel company.
It is a polluter pays model that affects companies engaged in the trade or activity of extracting fossil fuels or refining crude oil, responsible for more than a billion tonnes of carbon emissions. greenhouse gases during this period. The funds could be used by the state for things such as improving stormwater drainage systems; modernize roads, bridges and railways; relocate, raise or upgrade wastewater treatment plants; and make energy-efficient weatherization improvements in public and private buildings. It is inspired by the federal Superfund cleanup program.
Vermont’s approach has attracted interest from other states, including New York, where Gov. Kathy Hochul signed a similar bill into law in December.
New York law requires companies responsible for significant greenhouse gas emissions to contribute to a public fund for infrastructure projects intended to repair or prevent future damage from climate change. The largest emitters of greenhouse gases between 2000 and 2018 would be subject to fines.
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