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

The US Chamber of Commerce and the oil and gas industry’s top trade group applied lawsuit against Vermont over his new law requiring fossil fuel companies to pay for some of the damage caused by climate change.

The federal lawsuit, filed Monday, is asking a state court to block the state from enforcing a law passed by lawmakers last year, The Associated Press reported.The state has been working to estimate the cost of climate change since 1995.

Vermont became the first state in the country to pass such a law after it suffered catastrophic summer flooding and other extreme weather damage, the paper said.

Chamber and the American Petroleum Institute argue in a lawsuitthat the U.S. Constitution preempts the act and that the state law takes precedence over the federal Clean Air Act, the Associated Press reported targeting large energy companies outside of Vermont.”

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

Plaintiffs say the federal government is already applying climate changeaccording to the report. The plaintiffs add that because greenhouse gases come from billions of individual sources, it is impossible to “accurately and fairly” measure the impact of a particular entity’s emissions in a particular location over several decades.

“Vermont wants to impose massive retroactive penalties 30 years ago for legal, out-of-state conduct regulated by Congress under the Clean Air Act,” House Judiciary Center Senior Vice President and General Counsel Tara Morrisey said, according to the release . “It is illegal and violates the structure of the US Constitution. One state cannot attempt to fix a global problem that is best left to the federal government. Vermont’s penalties will ultimately increase costs for consumers in Vermont and across the country.”

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

The law requires the Vermont State Treasurer, in consultation with the Agency of Natural Resources, to issue a report by January 15, 2026, on the total costs to the state and its residents of greenhouse gas emissions since January 1, 1995. , by December 31, 2024. The review will examine the impact of greenhouse gases on various sectors, 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.

A portion of the funds collected from the companies can be used by the state to improve stormwater drainage systems, upgrade roads and bridges, upgrade or retrofit sewage treatment plants, and make energy-efficient weatherization upgrades to public and private buildings.

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

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Vermont’s law has drawn interest from other states, including New York, where a similar bill was signed into law last month.

New York’s law requires companies responsible for significant greenhouse gas emissions to pay public funds for infrastructure projects to repair or prevent damage caused by climate change, and the largest emitters of greenhouse gases between 2000 and 2018 will be subject to fines.