Vermont becomes first state to require oil companies to pay for damages caused by climate change : NPR

A small tractor clears water from a business as floodwaters block a road, July 12, 2023, in Barre, Vt. Vermont has become the first state to enact a law requiring fossil fuel companies to pay a portion of the damage caused by climate change after the state suffered catastrophic summer flooding and weather damage other harshness.

Charles Krupa/AP/AP

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Charles Krupa/AP/AP

Vermont has become the first state to enact a law requiring fossil fuel companies to pay for a portion of the damage caused by climate change after the state suffered catastrophic summer flooding and weather damage. other harsh weather.

Republican Gov. Phil Scott allowed the bill to become law without his signature late Thursday, saying he was very concerned about the costs and consequences of having a small state confront “ Big Oil” in a grueling legal battle. But he acknowledged that he understands the need to do something to address the consequences of climate change.

“I understand the desire to seek funding to mitigate the impacts of climate change that has hurt our state in so many ways,” said Scott, a largely moderate Republican from Vermont in blue, wrote in a letter to lawmakers.

The popular governor recently announced that he would seek re-election to a fifth, two-year term, having clashed with the Democratic-controlled Legislature, which he sees as unbalanced. He was expected by environmental advocates to veto the bill but then allowed it to be enacted. Scott wrote to lawmakers that he was comforted that the Natural Resources Agency was required to report back to the Legislature on the feasibility of this effort.

Flooding last July from torrential rains inundated Vermont’s capital Montpelier, the nearby city of Barre, and several southern Vermont communities, tearing apart homes and washing away roads around the rural state. village. Some consider it the state’s worst natural disaster since a 1927 flood that killed dozens and caused widespread destruction. It took months for businesses — from restaurants to stores — to rebuild, losing money over the summer and even into the fall. Some have only recently reopened, while many homeowners had to endure flood-damaged homes as the cold season entered.

By law, the Vermont treasurer, in consultation with the Natural Resources Agency, will provide a report by January 15, 2026, on the total costs to Vermonters and the state of greenhouse gas emissions from January 1, 1995, through December 31, 2024. The assessment will consider impacts on public health, natural resources, agriculture, economic development, housing, and other sectors. other. The state will use federal data to determine the amount of greenhouse gas emissions covered by a fossil fuel company.

This is a pay-to-polluter model that affects companies engaged in the trade or business of fossil fuel extraction or crude oil refining by emitting more than 1 billion tons of greenhouse gases over a period of time. that time. The state can use the funds for things like upgrading stormwater systems; upgrading roads, bridges, and railways; relocate, elevate or renovate wastewater treatment plants; and perform energy-efficient weatherization upgrades for public and private buildings. It is modeled after the federal Superfund cleanup program.

Paul Burns, executive director of the Vermont Public Interest Research Group, said in a statement: “For too long, giant fossil fuel companies have knowingly fueled climate change without nothing needs to be done to put out the fire.” “Finally, perhaps for the first time anywhere, Vermont will hold financially responsible the companies most responsible for climate-driven floods, fires and heat waves.”

Maryland, Massachusetts and New York are considering similar measures.

The American Petroleum Institute, the leading lobbying group for the oil and gas industry, said it was extremely concerned the law “retroactively imposes costs and liabilities on previously lawful activities, violate equal protection and due process rights by holding companies accountable for such actions.” of society in general; and is preempted by federal law.”

“This punitive new fee represents another step in a coordinated campaign to undermine America’s energy advantage and economic interests,” spokesman Scott Lauermann said in a statement Friday. economic and national security that this country brings”.

Vermont lawmakers know the state will face legal challenges, but the governor is worried about the costs and what it would mean for other states if Vermont fails.

State Rep. Martin LaLonde, a Democrat and a lawyer, believes Vermont is on solid legal footing. He said in the statement that lawmakers worked closely with many legal scholars in crafting the bill.

“Most importantly, the stakes are too high — and the costs are too high for Vermonters — to release the corporations that created the mess from their obligation to help clean it up,” he said.