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VERMONT FACES LEGAL CHALLENGE FROM BIG OIL  
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Alexandra Jacobo
January 6, 2025
Nation of Change
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_ A lawsuit from major fossil fuel groups aims to derail Vermont’s
groundbreaking plan to make polluters pay for climate disasters. _

, Nation of Change

 

_QUICK SUMMARY:_

• Vermont passed a first-of-its-kind law requiring fossil fuel
companies to pay for climate damages caused by their products.

• The U.S. Chamber of Commerce and the American Petroleum Institute
filed a federal lawsuit to block the law, arguing it violates the U.S.
Constitution and the Clean Air Act.

• Vermont’s law is modeled after the federal Superfund program and
aims to cover damages from greenhouse gas emissions dating back to
1995.

• The lawsuit claims it’s impossible to fairly measure the impact
of emissions from specific companies over decades.

• Vermont officials say the law is necessary to help cover the costs
of climate disasters like the $1 billion in damages caused by recent
flooding.

• New York and other states are considering similar laws, indicating
a broader trend toward holding polluters financially accountable for
climate change.

• Environmental advocates argue that fossil fuel companies have long
profited while avoiding accountability for their role in the climate
crisis.

In a move that could set a precedent for climate accountability laws
across the United States, the U.S. Chamber of Commerce and the
American Petroleum Institute (API) have filed a lawsuit against the
state of Vermont. The lawsuit challenges Vermont’s groundbreaking
law that requires fossil fuel companies to pay for damages caused by
climate change, which has increasingly devastated the state through
extreme weather events.

The law, passed in 2024, makes Vermont the first state in the nation
to hold fossil fuel companies accountable for a share of the financial
burden caused by climate change. Vermont’s move follows a series of
catastrophic weather events, including over $1 billion in damages from
summer flooding that left the state grappling with the impacts of
climate change.

The lawsuit, filed last Monday in the U.S. District Court for the
District of Vermont, seeks to block the state from enforcing the law.
The plaintiffs — the U.S. Chamber of Commerce and API — argue that
Vermont’s law is unconstitutional. They claim it violates the U.S.
Constitution’s commerce clauses by targeting out-of-state companies
and that the federal Clean Air Act preempts state-level climate
regulations.

The lawsuit asserts, “Vermont wants to impose massive retroactive
penalties going back 30 years for lawful, out-of-state conduct that
was regulated by Congress under the Clean Air Act.” Tara Morrissey,
senior vice president of the Chamber’s litigation center, stated
that the state’s actions could have widespread economic
repercussions. “That is unlawful and violates the structure of the
U.S. Constitution — one state can’t try to regulate a global issue
best left to the federal government. Vermont’s penalties will
ultimately raise costs for consumers in Vermont and across the
country.”

The fossil fuel industry claims that because greenhouse gas emissions
come from billions of individual sources, it is impossible to fairly
measure the impact of emissions from one entity over decades. The
industry argues that climate change is a global issue and should be
addressed by the federal government rather than through state-level
legislation.

Vermont’s law, modeled after the federal Superfund law, requires
fossil fuel companies to pay for the state’s climate-related damages
dating back to January 1, 1995. The state plans to calculate the cost
of damages using federal data and assess how much greenhouse gas
emissions can be attributed to each company.

The funds collected through the law will be used to mitigate future
climate impacts by improving infrastructure such as stormwater
drainage systems, upgrading roads and bridges, and weatherizing
buildings. The goal is to reduce the financial burden on Vermont
residents and businesses who are already paying for the effects of
climate change.

Paul Burns, executive director of the Vermont Public Interest Research
Group (VPIRG), praised the law, saying, “For too long, giant fossil
fuel companies have knowingly lit the match of climate disruption
without being required to do a thing to put out the fire. Finally,
maybe for the first time anywhere, Vermont is going to hold the
companies most responsible for climate-driven floods, fires, and heat
waves financially accountable for a fair share of the damages
they’ve caused.”

Anthony Iarrapino, a Vermont-based lobbyist with the Conservation Law
Foundation, echoed those sentiments, calling the lawsuit an attempt by
the fossil fuel industry to shirk responsibility. “More states are
following Vermont’s lead holding Big Oil accountable for the
disaster recovery and cleanup costs from severe storms fueled by
climate change, ensuring that families and businesses no longer have
to foot the entire bill time and time again,” Iarrapino said.

Vermont’s law has caught the attention of other states considering
similar legislation. New York recently passed a similar law, the
Climate Change Superfund Act, which requires major greenhouse gas
emitters to pay into a fund for climate adaptation projects. Maryland
and Massachusetts are also expected to introduce similar bills in the
coming year.

New York Governor Kathy Hochul, who signed the state’s bill into law
in December, emphasized the importance of funding climate adaptation
projects to prepare for future disasters. Vermont’s approach could
inspire other states to hold fossil fuel companies accountable for
climate-related damages, especially as extreme weather events become
more frequent and severe.

These state-level initiatives could signal a shift in how the U.S.
addresses climate accountability. While the federal government has
traditionally been slow to act on climate liability, states like
Vermont and New York are taking matters into their own hands.

The fossil fuel industry has long resisted efforts to hold it
accountable for its role in driving climate change. The industry has
repeatedly argued that emissions are a byproduct of lawful activities
and that holding individual companies responsible for global climate
change is unfair.

However, legal experts and environmental advocates argue that fossil
fuel companies have known for decades about the harmful effects of
their products and have continued to profit while delaying action on
climate change.

“The companies responsible for the bulk of greenhouse gas emissions
should contribute to the costs of climate adaptation and disaster
recovery,” said Katherine O’Brien, a senior attorney at
Earthjustice. “Vermont’s law is a step toward making polluters pay
for the damage they’ve caused.”

Vermont officials have expressed confidence in defending the state’s
law. As of January 3, the state’s Attorney General’s Office had
not been served with the lawsuit, but officials are preparing for a
legal battle.

A spokesperson for Vermont’s Agency of Natural Resources said, “We
will continue to advocate for policies that protect our state and
ensure that those responsible for climate change impacts contribute to
the cost of addressing them.”

The state treasurer, in consultation with the Agency of Natural
Resources, is scheduled to issue a report by January 2026 detailing
the total cost of climate damages to Vermont from 1995 to 2024. The
report will assess the impacts of climate change on public health,
agriculture, natural resources, and infrastructure, providing a
clearer picture of the financial toll that climate change has taken on
the state.

Vermont’s new climate accountability law is at the forefront of a
growing movement to hold fossil fuel companies responsible for their
contributions to climate change. The lawsuit from Big Oil is likely to
be a major legal test of whether states can enforce polluter-pays laws
for climate damages. As other states consider similar legislation,
Vermont’s fight could have far-reaching implications for climate
policy across the country.

“For too long, giant fossil fuel companies have knowingly lit the
match of climate disruption without being required to do a thing to
put out the fire,” said Paul Burns.

At NationofChange, our mission is to help people create a more
compassionate, responsible, and value-driven world, powered by
communities that focus on positive solutions to social and economic
problems.

* Climate Change
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* Vermont
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* big oil
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