Vermont’s groundbreaking new law is set to become the first in the United States to mandate that fossil fuel companies contribute to the expenses associated with weather-related disasters caused by climate change.
The bill was authorized by Republican Governor Phil Scott on Thursday night without his signature, following its passage in the state Legislature with majority support from Democrats.
According to Vermont law, the Climate Superfund Act is designed to hold companies accountable, similar to the EPA’s Superfund program, by requiring large oil and high-emission companies to cover expenses related to preparing for and recovering from extreme weather events resulting from climate change.
The companies subject to taxation and the specific amounts they must pay will be determined based on a calculation of the role of climate change in Vermont’s weather disasters and the costs incurred by the state. Each company’s share will be based on their carbon dioxide emissions between 2000 and 2019.
Following the bill’s passage in Vermont, there was uncertainty among state lawmakers regarding Governor Scott’s potential veto of the legislation. In a memo to lawmakers, Scott expressed concerns about the bill’s impacts.
However, supporters of the law celebrated its enactment, viewing it as a step towards holding major polluters accountable for environmental damage. Elena Millay, vice president of the Vermont Environmental Protection Law Foundation, praised the legislation.
Jessica Rinaldi/The Boston Globe via Getty Images file
Lauren Hierle, executive director of Vermont Environmental Voters, highlighted the importance of the Climate Superfund in distributing cleanup costs fairly and preventing taxpayers from bearing the burden alone.
The funds collected from fossil fuel companies under the new law will go towards upgrading infrastructure, securing schools and public buildings against extreme weather, storm cleanup, and reducing public health expenses related to climate change. State agencies will determine each company’s financial obligations by 2027.
While the law is expected to face legal challenges, including potential lawsuits, critics like the American Petroleum Institute argue that the fees are unjust and damaging to the energy industry.
Other states such as Massachusetts, Maryland, and New York are also contemplating similar legislation in response to escalating climate disasters, showcasing a growing need for financial resources to support recovery efforts.
Jennifer Rushlow, a Vermont Law School professor, emphasized the significance of Vermont’s law in setting a precedent for resilient climate Superfund legislation that could be adopted by other states.
Source: www.nbcnews.com
