By Guy Page and Paul Bean
24 states have joined an industry lawsuit against Act 122, the 2024 Vermont Climate Superfund law urged on the Legislature by the Vermont Public Interest Research Group (VPIRG) and other climate change reduction and renewable power industry advocates. The suit is one of three filed against the State of Vermont in connection with the law.
In a filing dated May 1, the American Petroleum Institute and U.S. Chamber of Commerce lawsuit filed last year was joined by these states, most of which are large producers or refiners of coal and petroleum products: West Virginia, Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, and Wyoming.
The lawsuit filed in U.S. District Court in Burlington claims “The State of Vermont believes it can seize control over the makeup of America’s energy industry. Vermont has attempted to impose what could potentially amount to billions of dollars of liability on energy producers disfavored by certain politicians. These energy producers needn’t operate in Vermont before becoming a target. And Vermont consumers won’t bear the brunt of these crushing new costs. Rather, Vermont intends to wring funds from producers, thus raising prices on consumers, in other States to subsidize certain Vermont-based ‘infrastructure’ projects.”
DOJ suit filed last week
The U.S. The Department of Justice last week filed a civil suit against the Vermont for Act 122, the 2024 climate Superfund law.
The DOJ also filed similar complaints against the states of New York, Michigan, and Hawaii.
In a press release that names all four states, the DOJ wrote, “President Trump recently directed Attorney General Pam Bondi to take action to stop the enforcement of state laws that unreasonably burden domestic energy development so that energy will once again be reliable and affordable for all Americans. These lawsuits advance President Trump’s directive in Executive Order 14260. ”
On January 20, President Trump signed Executive Order 14260, declaring an energy emergency, and also directing the Attorney General to target states’ energy policies purporting to address “climate change” or involving “environmental, social, and governance” initiatives, “environmental justice,” carbon or “greenhouse gas” emissions, and funds to collect carbon penalties or carbon taxes.
The feds claim that these proposed measures conflict with the Clean Air Act and are unconstitutional, asserting that such litigation hinders energy production, raises energy costs for Americans, and weakens national security against foreign threats.
“The Superfund Act is preempted by the Clean Air Act, exceeds the territorial reach of Vermont’s legislative power, unlawfully discriminates against interstate commerce, conflicts with federal interstate commerce power, and is preempted by federal foreign-affairs powers,” says the lawsuit. “The Superfund Act is a brazen attempt to grab power from the federal government and force citizens of other States and nations to foot the bill for Vermont’s infrastructure wish list,” continues the complaint.
In May 2024, the Vermont Legislature passed Act 122, The Climate Superfund Act. As described on a Vermont website, The law allows the state to recover financial damages from fossil fuel companies for the impacts of climate change to Vermont. Those funds would support climate adaption projects.
The two lead sponsors of S.259 (now Act 122) were Sen. Anne Watson, D-Washington, and Sen. Richard Sears, D-Bennington. The bill passed both House and Senate on mostly party line votes. Lacking an effective veto, Gov. Phil Scott allowed it to pass into law without his signature.
In addition to the DOJ and industry/state lawsuits, the Conservation Law Foundation filed suit last year for alleged failure to track emissions reduction.
When passed, Act 122 was the first U.S. state law to require fossil fuel companies to pay for damages caused by climate change. The law attempts to hold companies accountable for greenhouse gas emissions from 1995 to 2024, targeting those responsible for emissions from fossil fuel extraction or crude oil refining. The law aims to recover costs for allegedly climate-related damages, such as the $1 billion in flood damage from the July 2023 floods, and fund adaptation projects like upgrading infrastructure, weatherproofing buildings, and addressing public health impacts.
Feature photo – members of VPIRG promote the Make Big Oil Pay message during campaign for Act 122.