In a groundbreaking move, Vermont has become the first state in the nation to pass a law that holds "Big Oil" accountable for the damage caused by climate change. The law, known as the Climate Superfund Cost Recovery Program, will require oil and gas companies to pay for the long-term effects of climate change, which are primarily driven by their fossil fuel emissions.

The bill received approval without the signature of Vermont Governor Phill Scott, who expressed concerns about the financial challenges of taking on large and well-funded oil companies. Scott noted that with only $600,000 allocated for the analysis, the state may face difficulties in withstanding legal scrutiny. However, he acknowledged the importance of holding responsible parties accountable while expressing apprehension about the short- and long-term costs and outcomes.

"Big Oil", consisting of major oil and gas companies, heavily relies on fossil fuels in their operations, making them the largest contributors to global climate change, according to the United Nations. The international organization states that fossil fuels account for over 75% of greenhouse gas emissions, which contribute to rising global temperatures and extreme weather events.

Vermont has already experienced the impact of extreme weather firsthand. Last summer, the state was severely hit by catastrophic flooding, classified as a billion-dollar disaster by NOAA, after an unprecedented amount of rainfall occurred within a short period of time. This damaging event left entire towns isolated and infrastructure severely compromised. As global temperatures continue to rise, precipitation levels are expected to increase, leading to more intense storm systems.

Under the Climate Superfund Cost Recovery Program, the Agency of Natural Resources will oversee the process of assessing a "cost recovery demand" on entities, or their successors, involved in fossil fuel extraction or crude oil refining. Entities will only be required to pay if it is determined that their products emitted more than 1 billion metric tons of greenhouse gases between January 1, 1995, and December 31, 2024.

Funds collected through this program will be placed into a superfund, which aims to help Vermont adapt to climate change and develop infrastructure that is resilient to its impacts. Notably, other states including New York, California, Massachusetts, and Maryland are also considering similar legislation.

The Vermont Natural Resources Council, a prominent environmental group, applauded the passage of the bill, emphasizing the importance of holding "Big Oil" accountable for the cleanup costs related to their products. However, the American Petroleum Institute, the largest lobbying group for the oil and gas industry, strongly opposed the law, citing concerns about its retroactive imposition of costs and liability, violation of equal protection and due process rights, and potential conflict with federal law.

Governor Scott acknowledged that legal challenges are likely to arise, but highlighted the endorsements of the state's attorney general and treasurer, as well as the planned feasibility report by the Agency of Natural Resources in January. State Representative Martin LaLonde expressed confidence in the legal soundness of the legislation, asserting that the stakes are too high and the costs too steep for Vermonters to absolve oil companies of their responsibility to help clean up the mess they have contributed to.