Vermont is facing a federal lawsuit filed by the U.S. Chamber of Commerce and the American Petroleum Institute, challenging the state’s new law that holds fossil fuel companies accountable for the costs of climate change damage over the past three decades.
The law, enacted in 2023, requires companies to pay for damage linked to climate change, particularly following Vermont’s catastrophic summer flooding.
The state aims to calculate the financial impact of climate change since 1995, including costs to public health, agriculture, infrastructure, and other sectors.
The plaintiffs argue that the law is preempted by federal regulations, including the Clean Air Act, and violates the U.S. Constitution by imposing penalties for conduct that was previously regulated by federal law.
They claim that such penalties could raise costs for consumers across the country and that the law unfairly targets out-of-state companies. The lawsuit contends that climate change is a global issue that should be managed at the federal level, not by individual states.
Vermont, however, asserts that the law is crucial for addressing climate change impacts locally, and advocates like Anthony Iarrapino of the Conservation Law Foundation argue that this lawsuit seeks to prevent fossil fuel companies from being held accountable for their role in climate-related damage.
The state’s model follows a polluter-pays principle, similar to the federal Superfund program, and other states, including New York, are considering similar approaches to hold major greenhouse gas emitters financially responsible for climate-related infrastructure repairs and disaster recovery.
This legal battle could have significant implications for states seeking to hold corporations accountable for climate change impacts, as Vermont’s law is among the first of its kind.