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

By January 4, 2025 Business No Comments3 Mins Read
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 a top oil and gas industry trade group have filed a lawsuit against Vermont over its new law requiring fossil fuel companies to pay a share of the damage caused by climate change.

The federal lawsuit, which was filed Monday, asks a state court to block the state from enforcing the law, which was passed by lawmakers last year, according to The Associated Press. The state said it is working to estimate the cost of climate change dating back to 1995.

Vermont became the first state in the nation to pass such a law after suffering catastrophic summer flooding and damage from other extreme weather, the newspaper noted.

The chamber and the American Petroleum Institute argue in the lawsuit that the U.S. Constitution exempts the act and that the state law is preempted by the federal Clean Air Act, the Associated Press reported. The lawsuit also says the law violates the Commerce 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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Flooding in downtown Montpelier, Vermont on Tuesday, July 11, 2023. (Getty Images)

According to the report, the plaintiffs say the federal government is already addressing climate change. The plaintiffs add that since greenhouse gases come from billions of individual sources, it is impossible to measure “accurately and fairly” the impact of emissions from a given unit in a given place over many decades.

“Vermont wants to impose massive retroactive penalties going back 30 years for legal, out-of-state conduct that was regulated by Congress under the Clean Air Act,” said Tara Morrissey, senior vice president and deputy chief counsel of the House’s judicial center. , according to the report. “This is illegal and violates the fabric of the U.S. Constitution—a state cannot attempt to regulate a global issue best left to the federal government. Vermont’s penalties will ultimately increase costs for consumers in Vermont and the whole country.”

A man watches the floods in Vermont

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

The law requires the state treasurer of Vermont, in consultation with the Agency of Natural Resources, to issue a report by January 15, 2026, on the total cost to the state and its residents of emitting greenhouse gases from January 1, 1995, to 31 December 2024. The review will examine the effects of greenhouse gases in various areas, including public health, natural resources, agriculture, the economy development and housing.

The state would use federal data to determine whether the amount of covered greenhouse gas emissions can be traced to a fossil fuel company.

Part of the funds raised by the companies can be used by the state for things like improving stormwater drainage systems, improving roads and bridges, erecting or reconstructing sewage treatment plants, and improving weather efficiency. energy in public and private buildings.

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Flooding in Vermont

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

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The Vermont law drew interest from other states, including New York, where a similar bill was signed into law last month.

The New York law requires companies responsible for significant greenhouse gas emissions to pay into a 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 with fines.

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