A federal lawsuit has been filed by the U.S. Chamber of Commerce and a leading oil and gas industry trade group against Vermont over its new law requiring fossil fuel companies to pay for the damages caused by climate change over several decades. The law, enacted last year, is the first of its kind in the country and aims to hold energy companies accountable for their role in climate change.
The lawsuit argues that the state law is preempted by the federal Clean Air Act and violates the U.S. Constitution by targeting out-of-state energy companies. It also contends that measuring the impact of emissions from individual sources over decades is impractical.
The Chamber of Commerce asserts that Vermont's attempt to impose retroactive penalties for emissions dating back to 1995 is unlawful and will ultimately raise costs for consumers nationwide. The state's Agency of Natural Resources has not yet been formally served with the lawsuit.
Under the law, Vermont aims to assess the total cost of greenhouse gas emissions on public health, natural resources, and other areas. Companies responsible for significant emissions will be required to contribute to a state fund for infrastructure projects to mitigate climate change impacts.
This approach has garnered interest from other states, with New York recently passing a similar bill that holds major emitters accountable for their greenhouse gas emissions. The funds collected will be used for infrastructure projects to repair and prevent future damage caused by climate change.
