Vermont becomes the first state with a law to force oil companies to pay for climate change

Vermont has become the first state to enact a law requiring fossil fuel companies to pay a portion of damages caused by natural disasters, after the state suffered summer flooding and damage from other extreme weather.

Republican Gov. Phil Scott did not sign the bill, but the Vermont General Assembly has a large Democratic majority in both chambers. Lawmakers in Maryland, Massachusetts and New York are considering similar measures.

Scott stated in a statement to lawmakers that "taking on Big Oil should not be taken lightly" and that he is concerned about the costs and results. He said he is concerned that if the state fails in this legal challenge, it will "set a precedent and hinder other states' ability to recover damages."

Under the protection of this new law, the Vermont state administration will carry out a study that must be presented in 2025 that will declare the total cost for the citizens of the state and the government due to the emission of greenhouse gases from Jan. 1, 1995 to Dec. 31, 2024.

The evaluation would take into account the effects on public health, natural resources, agriculture, economic development, housing and other areas. The state would use federal data to determine the amount of greenhouse gas emissions attributed to a fossil fuel company.

Oil companies have been concerned about this new law. An organization that represents the sector, the American Petroleum Institute, told the AP that the law "retroactively imposes costs and liability on prior activities that were legal, violates equal protection and due process rights by holding companies responsible for the actions of society at large; and is preempted by federal law."