Vermont becomes 1st state to require oil companies to pay for climate change damages

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The state's Republican governor allowed the bill to become law without his signature. The move comes after the state suffered catastrophic summer flooding and damage from other extreme weather.

A small tractor clears water from a business as flood waters block a street, July 12, 2023, in Barre, Vt. 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.

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

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.

“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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