US Chamber of Commerce, oil group sues Vermont over law requiring companies to pay for climate change damages
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The US Chamber of Commerce and the oil and gas industry’s top trade group have filed a lawsuit against Vermont over its new law requiring fossil fuel companies to pay part of the damages caused by climate change.
The lawsuit, filed Monday, asks a federal court to block the state from implementing the law, which was passed last year by the White House, according to the Associated Press. The government has said it has been working to estimate the costs of climate change since 1995.
Vermont became the first state in the country to enact such a law after it was hit by summer flooding and damage from other extreme weather, a source said.
The Chamber and the American Petroleum Institute argued that the US Constitution prohibits the practice and that state law is governed by the Federal Clean Air Act, the Associated Press reported. The lawsuit also says the law violates the domestic and foreign commerce clauses by discriminating against “a vital interest of other states by targeting large energy companies located outside of Vermont.”
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Flooding in the city of Montpelier, Vermont on Tuesday, July 11, 2023. (Getty Images)
The plaintiffs claim that the federal government is already addressing climate change, the report said. The plaintiffs added that since greenhouse gases come from billions of individual sources, it is impossible to “accurately and accurately” measure the impact of carbon emissions on a particular company in a particular area over many decades.
“Vermont wants to impose large fines going back 30 years for illegal, out-of-state behavior that was regulated by Congress under the Clean Air Act,” said Tara Morrissey, senior vice president and deputy general counsel at the Chamber’s litigation center. , according to the report. “That is illegal and violates the structure of the US Constitution – one state cannot attempt to control a global issue left to the federal government. Vermont’s sanctions will ultimately increase costs for consumers in Vermont and across the country.”
A man watches as heavy rain sends mud and debris into the Ottauquechee River in Vermont. (Getty Images)
The law requires the Vermont state treasurer, in consultation with the Environmental Protection Agency, to issue a report on Jan. 15, 2026, for the total cost to the state and its citizens of greenhouse gas emissions from Jan. 1. 1995 , to Dec. 31, 2024. This review will examine the effects of greenhouse gases in a variety of areas, including public health, natural resources, agriculture, economic development and housing.
The state will use federal data to determine whether the amount of covered greenhouse gas emissions can be traced back to a fossil fuel company.
Funds collected from companies may be used by the government for things like improving storm water drainage systems, improving roads and bridges, upgrading or rehabilitating sewage treatment plants and improving energy-saving climate control in public and private buildings.
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After the flood on Red Village Road in Vermont. (Getty Images)
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Vermont’s law has caught the attention of other states, including New York, where a similar bill was signed into law last month.
New York law requires companies responsible for emitting large amounts of greenhouse gases to pay into the state fund for infrastructure projects to repair or prevent future damage caused by climate change, and those who emitted large amounts of greenhouse gases between 2000 and 2018 will face fines.
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