Governor Cites Concerns Over Legal Battle but Acknowledges Climate Crisis
Vermont has made history as the first state to pass a law requiring fossil fuel companies to pay for the damage caused by climate change, following catastrophic summer flooding and other extreme weather events. Governor Phil Scott allowed the bill to become law without his signature, expressing concerns about the costs and challenges of taking on major oil companies alone but recognizing the necessity of addressing climate impacts.
Legislative framework and objectives
Under the new law, the Vermont state treasurer, in consultation with the Agency of Natural Resources, must report by January 2026 on the total costs to Vermonters from greenhouse gas emissions between 1995 and 2024. This report will cover public health, natural resources, agriculture, economic development, housing, and other areas. The state will use federal data to attribute emissions to specific fossil fuel companies, adopting a polluter-pays model similar to the federal Superfund program.
Financial and environmental goals
Funds collected from these companies will be allocated to projects such as upgrading stormwater drainage systems, enhancing infrastructure, and making buildings more energy-efficient. Paul Burns, executive director of the Vermont Public Interest Research Group, emphasized the significance of holding fossil fuel companies financially accountable for climate-induced disasters.
Legal and political challenges
The American Petroleum Institute has raised concerns about the law, arguing it imposes retroactive liability and violates constitutional rights. Governor Scott, while allowing the bill to proceed, highlighted the potential legal and financial risks for Vermont and other states. State Rep. Martin LaLonde, a key proponent of the bill, asserted that Vermont has a strong legal foundation, crafted with input from numerous legal scholars.
Historical context and future implications
Vermont’s action follows severe flooding last July that devastated the state, causing extensive damage to homes and businesses. This law aims to mitigate future climate impacts and set a precedent for other states like Maryland, Massachusetts, and New York, which are considering similar measures. Despite the expected legal battles, Vermont lawmakers believe the stakes are too high to ignore the responsibility of fossil fuel companies to address climate change.