Vermont Business Magazine The Vermont House of Representatives advanced the Climate Superfund Act, S.259, today on a vote of 94-38. Democrats, Republicans, Progressives and Independents voted in favor of the legislation.
S.259 holds the largest fossil fuel corporations responsible for a "fair share" of the damages Vermonters have suffered due to climate change resulting from greenhouse gas emissions attributable to the massive amount of fossil fuels extracted and refined by those corporations.
“Vermonters didn’t cause climate change, but we’re paying billions to deal with it,” said Ben Edgerly Walsh, Climate and Energy Program Director at the Vermont Public Interest Research Group (VPIRG). “This bill holds Big Oil accountable for the problems they’ve caused.”
“The fossil fuel industry knew for decades that their products would cause costly and disastrous climate changes,” said Anthony Iarrapino of the Conservation Law Foundation. “Instead of acting on this knowledge by transitioning to cleaner alternatives that could have avoided the worst climate impacts, they stuck with business as usual and in some cases increased production. It is only fair to hold them accountable for the financial consequences their voluntary business decisions have imposed on society.”
S.259 will now return to the Vermont Senate for final approval. The Senate gave preliminary approval of the proposal on a 26-3 vote last month.
“As a Montpelier city councilor, I’ve seen firsthand the devastating costs of climate change to homeowners, local businesses, and in the municipal budget,” said Lauren Hierl, executive director of Vermont Conservation Voters. “Vermonters can’t afford to keep paying to clean up a mess that Big Oil created.”
“I appreciate the overwhelming majority of representatives who took the side of Vermont farmers, businesses and citizens today,” said Johanna Miller of the Vermont Natural Resources Council. “This bill says loud and clear that the General Assembly prioritizes Vermont communities over Big Oil profits.”
The Joint Fiscal Office issued the following Fiscal Note on April 25:
S.259 – An act relating to climate change cost recovery
As recommended by the House Committee on Environment and Energy
Bill Summary
The bill would establish the Climate Superfund Cost Recovery Program to be administered by the Climate Action Office of the Agency of Natural Resources. The Program would secure compensatory payments from responsible parties to provide a source of revenue for climate change adaptation projects within the State. Payments would be based on proportional liability of responsible parties. The Program would also develop the strategy to identify and prioritize climate change adaptation projects and disperse funds to implement those projects.
The bill would create the Climate Superfund Cost Recovery Program Fund to be administered by the Secretary of Natural Resources to collect cost recovery payments and pay out qualified expenditures for climate change adaptation projects, administrative expenses of the Program, implement action identified in the State Hazard Mitigation Plan, and implement the Community Resilience and Disaster Mitigation Grant Program.
The bill would require the State Treasurer to complete an assessment of the cost to the State and its residents of the emission of covered greenhouse gases during the period January 1, 1995 through December 31, 2024. The assessment would include effect on public health, natural resources, biodiversity, agriculture, economic development flood preparedness and safety, housing, and other relevant effects.
Fiscal Impact
The short-term fiscal impact consists of two pieces. First, $300,000 is appropriated from the General Fund to the Agency of Natural Resources in Fiscal Year 2025 to implement the Climate Superfund Cost Recovery Program and the Cost Recovery Program Fund. That appropriation would cover one new three-year limited service position in the Agency of Natural Resources, among other things.
Second, $300,000 is appropriated from the General Fund to the Office of the State Treasurer in Fiscal Year 2025 to support hiring consultants or third-party services to assist in completing the assessment of the cost to the State and its residents of the emission of covered greenhouse gases. The assessment would be completed on or before January 15, 2026 and delivered to various legislative committees.
The longer-term fiscal impacts are nearly impossible to estimate. Before any funds would be deposited into the Climate Superfund Cost Recovery Program Fund, the State is likely to face substantial legal fees. Fossil fuel producers and refiners would be expected to sue the State over its right to demand cost recovery payments from them. Any legal action could drag on for years, especially if Vermont is the first state to require such cost recovery payments. If the courts ultimately support the Climate Superfund Cost Recovery Program, how much money would come into the State in future years, how large the adaptation and resilience costs would be, and the timing of those payments and costs cannot be estimated at this time.
Source: 5.6.2024. MONTPELIER - VPIRG. JFO
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