Flooding blocks streets and a small tractor clears standing water from businesses in Barre, Vermont, on July 12, 2023. This follows the devastation caused by catastrophic floods and other extreme weather over the summer.
Charles Krupa/AP/Associated Press
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Charles Krupa/AP/Associated Press
After being devastated by catastrophic flooding and other extreme weather over the summer, Vermont became the first state to enact a law requiring fossil fuel companies to cover the costs of climate change.
Republican Gov. Phil Scott late Thursday allowed the bill to become law without his signature, saying he was deeply concerned about the costs and consequences of the small state going it alone against “Big Oil” that could be A tough legal battle. But he acknowledged that he understood something had to be done to address the toll of climate change.
“I understand the desire to seek funding to mitigate the effects of climate change, which is harming our state in many ways,” Scott wrote in a letter to lawmakers. of Vermont moderate Republicans.
The popular governor, who recently announced he will run for re-election to a fifth two-year term, has been at odds with the Democratic-controlled Legislature, which he calls unbalanced. Environmental advocates expected him to veto the bill, but then allowed it to pass. Scott wrote to lawmakers saying he was relieved that the Natural Resources Agency was required to report to the Legislature on the feasibility of the effort.
Last July, flooding from heavy rains inundated the Vermont capital of Montpelier, the nearby city of Barre and some communities in southern Vermont, and washed away homes and roads around the rural state. Some consider it the state’s worst natural disaster since a 1927 flood that killed dozens and caused widespread destruction. From restaurants to stores, businesses took months to rebuild, losing their summer and even fall seasons. Some homes have recently reopened, while many homeowners are still holding onto their flood-damaged homes heading into the cold season.
Under the legislation, the Vermont Secretary of Finance, in consultation with the Bureau of Natural Resources, will provide a report by January 15, 2026 on the total costs of greenhouse gas emissions to Vermont and the state since January 1, 1995 , until December 31, 2024. The state will use federal data to determine how much greenhouse gas emissions fossil fuel companies cover.
This is a polluter pays model that affects companies engaged in the trade or business of extracting or refining fossil fuels, which have emitted more than 1 billion tons of greenhouse gases during this period. The state could use the funds to upgrade stormwater drainage systems, among other things; upgrade roads, bridges and railroads; relocate, elevate or retrofit wastewater treatment plants; and make energy-efficient, weatherproof upgrades to public and private buildings. It is modeled after the federal Superfund pollution cleanup program.
“For too long, large fossil fuel companies have deliberately lit the match of climate destruction without being required to do anything to put out the fires,” Paul Burns, executive director of the Vermont Public Interest Research Group, said in a statement. “Finally, For perhaps the first time, Vermont is holding the companies most responsible for climate-driven floods, fires and heat waves financially accountable for their fair share of the damage they cause.”
Maryland, Massachusetts and New York are considering similar measures.
The American Petroleum Institute, the oil and gas industry’s top lobbying group, said it said the legislation “retroactively imposes costs and liabilities on previously lawful activities, violating equal protection and due process rights and holding companies accountable for those actions.” Extremely worried. and are preempted by federal law.
“This punitive new charge represents a concerted effort to undermine America’s energy dominance and the economic and national security benefits it brings,” spokesman Scott Lauermann said in a statement Friday.
Vermont lawmakers know the state will face legal challenges, but the governor worries about the cost of failure in Vermont and what it means for other states.
Democratic Rep. Martin LaLonde, an attorney, believes Vermont has a strong legal case. He said in a statement that lawmakers worked closely with many legal scholars to draft the bill.
“The bottom line is that exempting businesses that create messes from their obligation to help clean them up is too risky and too costly for Vermonters,” he said.
