Vermont becomes first state to require oil companies to pay for damage from climate change

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Republican Gov. Phil Scott allowed the bill to become law without his signature late Thursday.

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

The popular governor who recently announced that he's running for reelection to a fifth two-year term, has been at odds with the Democrat-controlled Legislature, which he has called out of balance. 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 Agency of Natural Resources is required to report back to the Legislature on the feasibility of the effort.

Under the legislation, the Vermont state treasurer, in consultation with the Agency of Natural Resources, would provide a report by Jan. 15, 2026, on the total cost to Vermonters and the state from the emission of greenhouse gases from Jan. 1, 1995, to Dec. 31, 2024. The assessment would look at the effects on public health, natural resources, agriculture, economic development, housing and other areas.

"This punitive new fee represents yet another step in a coordinated campaign to undermine America's energy advantage and the economic and national security benefits it provides," spokesman Scott Lauermann said in a statement Friday.

 

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