Severe flooding struck Chester and other parts of Vermont in 2023. The state enacted a law this year that seeks to charge fossil fuel companies for the damages caused by climate change. (Scott Eisen/Getty Images)
Vermont is the first state trying a new approach to climate policy: charging fossil fuel companies money to cover the damages caused by natural disasters worsened by climate change.
Other states could be close behind. New York lawmakers passed their own measure in June, though it’s unclear if Democratic Gov. Kathy Hochul will sign the bill. And legislators in California, Maryland, Massachusetts and New Jersey have introduced similar bills, which environmental advocates in those states have identified as a top priority for upcoming sessions.
“We’re certainly hoping that Vermont will be in good company soon,” said Ben Edgerly Walsh, climate and energy program director with the Vermont Public Interest Research Group, an environmental nonprofit.
The so-called climate Superfund measures are based on the “polluter pays” concept of the 1980 federal Superfund law, which covers the cleanup of toxic waste sites. Under the proposals, states would determine how much to charge fossil fuel companies based on their historical role in producing the emissions responsible for climate change.
he proposals could bring in billions of dollars to deal with disasters such as the flooding that has ravaged Vermont in the past year. Other states could use the cash to address the damages caused by sea level rise, wildfires or droughts.