by Don Keelan
Two impactful events occurred weeks apart, one in Vermont and the other in New York State. Both have severe repercussions for the large oil and gas producers that provide much, if not all, fuel oil, propane gas, and gasoline to both states.
During the week of May 27, 2024, Governor Phil Scott allowed S-259 to become law by not vetoing the Vermont Legislature’s recently passed bill that would, after the cost is determined, assess the major oil producers a charge for damages within the state caused by their products carbon emissions between 1995 and 2024.
The State Treasurer, working with the Agency of Natural Resources, has until January 2026 to tally up the damages to Vermont caused by the oil companies’ products consumed in Vermont over the noted period.
Meanwhile, according to an article in the June 12th WSJ, the NYS Legislature adopted a bill that “would charge fossil-fuel companies a total of $3 billion a year for 25 years to pay for costs associated with climate change.”
According to the WSJ report, some of the largest oil-producing organizations, such as Saudi Aramco, Exxon Mobil, Shell, Pemex, BP, Chevron, and Peabody Energy, could be impacted. The annual cost charged to each company could range from $644 million to $150 million.
Vermont has received credit for being the first in the Nation to go after big oil. However, it will need 18 months to calculate the cost of climate damage caused by oil/gas pollution. I am sure the underlying study will come at a considerable cost, not including the cost of years of litigation to follow.
If NYS Governor Hochul signs the bill, her state will have the cost ready to be assessed. Maybe Vermont should find out how it was derived so quickly.
Or maybe Vermont should drop this insane idea of going after the oil companies in the first place. By not doing so, we cast ourselves as first-class hypocrites. This State needs oil and gas; otherwise, it will not survive. For example, the ski and tourist industry.
Reporting the week of June 11th, Ski Vermont announced that the 2023/24 ski season was a banner year for the ski industry, with 4.1 million ski days bringing close to $975 million in economic activity to the State.
Meanwhile, earlier this year, the State’s Economic Development agency announced that Vermont had over 13 million visitors in 2023. I can state with a degree of certainty that most visitors who drove to Vermont did not do so in an electric vehicle.
Closer to home, tens of thousands of Vermonters are dependent on fuel to heat their homes and businesses and operate their cars, trucks, and other vehicles. Let us not forget how customers and deliveries travel in Vermont.
A long-time fuel dealer informed me that when asked if fuel deliveries to Vermont could be interrupted by big oil due to pending assessments, he replied that it was quite possible. He said, “Why would they continue?”
The dealer’s point was not lost on me. Why would the oil companies continue to make deliveries if they have been informed that their product is causing damage up through 2024 (2020 in NY)? They know the timeframe will be extended, so just ending the product’s shipment to Vermont would be the common sense thing to do. For Vermonters, then what?
What escapes me is our progressive legislature going after big oil for allegedly causing damage to Vermont when, in fact, it was I who has and continues to send pollutants into the atmosphere. I am the one who heats my home and office with fuel oil. I cook on a gas stove and also drive a car powered by gasoline. I have known this for over 60 years when global warming was the rage and has now morphed into climate change.
It is too bad Vermont and New York legislators can’t be honest. Their states need money to address years of neglect of their infrastructure. So, let’s go after the deep pockets while encouraging more tourists to drive to Vermont.
The author is a U.S. Marine (retired), CPA, and columnist living in Arlington, VT.