US Chamber of Commerce, oil group sue Vermont over law requiring companies to pay for climate change damages


The U.S. Chamber of Commerce and a top oil and gas industry trade group filed the petition Complaint against Vermont The new law requires fossil fuel companies to pay for damages the government attributes to climate change.

The federal lawsuit, filed Monday, asks a state court to block the law, which was passed by lawmakers last year, from taking effect, the Associated Press reported. The state said it is working on an estimate of the cost of climate change that goes back to 1995.

The publication noted that Vermont is the first state in the nation to pass a law of its kind after suffering catastrophic flooding this summer and damage from other extreme weather.

Chamber and American Petroleum Institute Discuss the petitionThe Associated Press reported that the U.S. Constitution prevents the law, and that the state law was preempted by the federal Clean Air Act. The lawsuit also says the law violates the domestic and foreign commerce clauses by discriminating against “important interests of other states by targeting large energy companies located outside of Vermont.”

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Vermont floods

Flooding in downtown Montpelier, Vermont on Tuesday, July 11, 2023. (Getty Images)

The plaintiffs say the federal government is already investigating Climate changeAccording to this report. Because greenhouse gases come from billions of individual sources, the plaintiffs add, it's impossible to “accurately and fairly” measure the impact of a particular entity's emissions at a particular location over decades.

“Vermont wants to impose sweeping retroactive penalties going back 30 years for legal, out-of-state conduct set by Congress under the Clean Air Act,” said Tara Morrissey, senior vice president and deputy chief counsel for the Chamber's Litigation Center. According to this report. “This is illegal and violates the structure of the United States Constitution — a state cannot attempt to leave a global issue best left to the federal government. Vermont's penalties will ultimately increase costs for consumers in Vermont and in It increases across the country.”

A man watches a flood in Vermont

A man watches as heavy rain sends mud and dirt down the Ottauquechee River in Vermont. (Getty Images)

The act requires the Vermont State Treasurer, in consultation with the Natural Resources Agency, to release a report by January 15, 2026 on the total costs of greenhouse gas emissions to the state and its residents since January 1, 1995. , until December 31, 2024. This review examines the effects of greenhouse gases on various areas, including public health, natural resources, agriculture, and the economy. Development and housing.

The state uses federal data to determine whether covered emissions can be traced back to a fossil fuel company. will use

Shares of funds collected from companies can be used by the government for things like improving storm drainage systems, upgrading roads and bridges, upgrading or retrofitting wastewater treatment plants, and promoting energy-efficient weatherization in public and private buildings.

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Flooding in Vermont

Consequences of flash flooding on Red Village Road in Vermont. (Getty Images)

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The law in Vermont drew attention from other states, including New York, where a similar bill passed last month.

New York's law requires companies responsible for significant emissions of greenhouse gases to pay into the state fund for infrastructure projects to repair or prevent future damage from climate change, and the largest emitters of greenhouse gases between 2000 and 2018 will face fines.



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