Fossil fuel industry allies sue Vermont over landmark climate law

By Lesley Clark | 01/06/2025 06:15 AM EST

Business groups say the law seeking payment from oil and gas companies is unconstitutional and would dictate energy policy for the rest of the country.

Vermont flooding.

A small tractor clears water from a business as floodwaters block a street July 12, 2023, in Barre, Vermont. The state's new law requires fossil fuel producers to pay for some of the state's recovery costs from climate-related storms. Charles Krupa/AP

Supporters of the oil and gas industry are suing Vermont over its new law that forces fossil fuel producers to pay for the costs of climate change.

In a lawsuit filed last week in the U.S. District Court for the District of Vermont, the U.S. Chamber of Commerce and the American Petroleum Institute alleged that the state’s law is unconstitutional, violates the federal Clean Air Act and should be struck down.

“Vermont’s sprawling scheme that targets greenhouse gas emissions emitted in all 50 states and countries around the globe is simply beyond the limits of state law,” the lawsuit said.

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The groups said the law violates other states’ sovereignty and that although Vermont “would reap the benefits of millions of dollars to fund its preferred climate change adaptation projects, citizens of other states would receive no benefits, only costs.”

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