Vermont became the first state to enact a law requiring fossil fuel companies to pay a share of the damages caused by climate change after the state suffered as a result. catastrophic summer floods and damage caused by other extreme weather conditions.
Republican governor. Phil Scott allowed the bill to become law without his signature Thursday night, saying he was concerned about the costs and results of pitting the small state against “big oil” alone in what will likely be a legal fight exhausting. But he acknowledged that he understood that something had to be done to address the harmful consequences of climate change.
Scot, a moderate Republican from the largely blue state of Vermont, recently announced he was running for re-election to a fifth two-year term. He is at odds with the Democratic-controlled Legislature, which he called unbalanced, and environmental advocates expected him to veto the bill, but he later allowed it to be signed into law. .
“Instead of coordinating with other states like New York and California, which have far more abundant resources, Vermont – one of the least populated states with the lowest GDP in the country – decided to collect through itself the costs associated with climate change,” Scott said. » wrote in a letter to participants. But he said he understands the desire to seek funding to mitigate the damage caused by climate change that has hit Vermont “in many ways.”
The floods of last July Torrential rains flooded Montpelier, Vermont’s capital, the neighboring town of Barre, some communities in southern Vermont, destroyed homes and washed out roads around the rural state. Some call it the worst natural disaster the state has seen since the 1927 flood that killed dozens of people and caused widespread damage. It took months for businesses – from restaurants to stores – to rebuild, losing their summer and even fall seasons. Several have recently reopened while many homeowners have been left with flood-ravaged homes as the cold season approaches.
Under the legislation, the Vermont State Treasurer, in consultation with the Natural Resources Agency, would provide a report by January. 15, 2026, on the total cost to Vermonters and the state of greenhouse gas emissions starting January 1. 1, 1995 to December 31, 2024. The assessment would examine impacts 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 extracting fossil fuels or refining crude oil, responsible for more than a billion tonnes of greenhouse gas emissions. 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 modeled on the Federal Superfund cleanup program.
“For too long, giant fossil fuel companies have knowingly lit the match for climate change without being required to do anything to put out the fire,” said Paul Burns, executive director of the Vermont Public Interest Research Group, in a press release. “Finally, perhaps for the first time, Vermont will hold the companies most responsible for climate-related floods, fires and heat waves financially responsible for a fair share of the damage they caused.”
Maryland, Massachusetts and New York are considering similar measures.
The American Petroleum Institute, the oil and gas industry’s main lobbying group, said it was extremely concerned that the legislation “retroactively imposes costs and liabilities on prior activities that were legal, violates the equal protection and due process rights by holding businesses accountable for their actions.” of society as a whole; and is preempted by federal law. He also said in a letter to others before the bill became law that the measure does not warn potentially affected businesses of the amount of potential fees.
Vermont expects the state will face legal challenges, but the governor worries about the costs and what it would mean for other states if Vermont fails.
State Representative. Martin LaLonde, a Democrat and lawyer, believes Vermont has a strong legal case. Lawmakers worked closely with numerous legal experts to craft the bill, he said in a statement.
“More importantly, the stakes are too high – and the costs too high for Vermonters – to release the companies that caused the disaster from their obligation to help clean it up,” he said.