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. Maryland, Massachusetts and New York are considering similar measures.

Flooding in downtown Montpelier, Vt., July 11, 2023. The state has passed a law requiring fossil fuel producers to pay for some of the state's recovery costs from climate-related storms.

It’s a polluter-pays model affecting companies engaged in the trade or business of extracting fossil fuel or refining crude oil attributable to more than 1 billion metric tons of greenhouse gas emissions during the time period.

Vermont legislators know that the law will face legal challenges, and the governor worries about costs to the small state.

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