The State of Vermont has become the first in the nation to actively begin targeting fossil fuel companies responsible for the climate change crisis.
Vermont has enacted legislation requiring the world’s largest oil companies to pay for damages resulting from fossil fuel induced climate change. The bill, S. 259 – Climate Superfund Act, is modeled off of the federal Superfund law and according to the fiscal note would,
“secure compensatory payments from responsible parties to provide a source of revenue for climate change adaptation projects within the State. Payments would be based on proportional liability of responsible parties. The Program would also develop the strategy to identify and prioritize climate change adaptation projects and disperse funds to implement those projects.”
Under the bill, the State Treasurer must assess the cost to the State and its residents of the emission of covered greenhouse gases during the period January 1, 1995 through December 31, 2024. The assessment includes effects on public health, natural resources, biodiversity, agriculture, economic development, flood preparedness and safety, housing, and other relevant effects.
The Maryland General Assembly considered a similar bill during the 2024 legislative session. HB 1438 – the Responding to Emergency Needs From Extreme Weather (RENEW) Act of 2024, would have established a similar fund and cost recovery program as the one established in Vermont. Unlike Vermont, the Maryland bill set a total cost recovery figure of $9 billion, and each company would be required to pay a share of that total cost. The bill was jointly assigned to the Economic Matters and Environment & Transportation committees but ultimately did not advance before crossover. This recent move by Vermont will almost assuredly reignite future interest in similar legislation here in Annapolis.
Columbia University recently published an analysis outlining the state-level Superfund bill, including possible future legal challenges. Two of the biggest hurdles identified in the Maryland legislation are defending how the General Assembly determined the $9 billion figure and questions around whether there may be possible violations of the Due Process Clause of the Fourteenth Amendment.
Check out Vermont’s S. 259 – Climate Superfund Act.
Read Colunbia’s analysis of several state-level Superfund bills.
