Vermont became the first state to pass a law requiring fossil fuel companies to pay part of the damages caused by climate change, after the state suffered catastrophic summer flooding and other weather-related damage extremes.
Republican Gov. Phil Scott allowed the bill to pass without his signature late Thursday.
He said in his message to lawmakers that he was “deeply concerned about the short- and long-term costs and outcomes” and that if the state failed in this legal challenge, “it would set a precedent and hinder the ability to ‘other States to recover damages’.
Maryland, Massachusetts and New York are considering similar measures.
Under this law, the Vermont State Treasurer, in consultation with the Natural Resources Agency, will be required to provide, by January 15, 2026, a report on the total cost to the people of Vermont and the State , greenhouse gas emissions between January 1, 1995 and December 31, 2024.
The assessment will focus on effects on public health, natural resources, agriculture, economic development, housing and other areas.
It is a polluter pays model that concerns companies engaged in the trade or activities of fossil fuel extraction or crude oil refining, responsible for more than one billion metric tons of gas emissions greenhouse effect during this period.
The funds could be used by the state to improve stormwater drainage systems, roads, bridges and railroads; move, raise or modernize wastewater treatment plants; and improve the energy efficiency of public and private buildings.