By Paul Bean

The U.S. Department of Justice has filed a civil suit against the State of 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 State of 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. 

The federal suit is the third leveled against ANR over the Superfund bill. The Conservation Law Foundation filed suit last year for alleged failure to track emissions reduction, and then the U.S. Chamber of Commerce and the Petroleum Institute sued over interstate commerce violation. 

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.

VDC will follow up in the morning for reactions and comments from Vermont officials and related organizations.