Vermont implements climate liability rules for fossil fuel companies emissions from 1995 to 2024

In a pivotal meeting on April 5, 2025, the Vermont House Energy and Digital Infrastructure Committee laid out a comprehensive framework for holding fossil fuel companies accountable for their greenhouse gas emissions. The proposed legislation aims to establish strict liability for major extractors and refiners, ensuring they contribute to climate change adaptation costs based on their emissions in Vermont from 1995 to 2024.

Key discussions centered around the concept of "responsible parties," which include significant players like ExxonMobil and Marathon Oil. These entities will be jointly and severally liable for their share of emissions, meaning if one company within a corporate group has the financial resources, the state can recover costs from them, regardless of the financial status of other companies in the group.

The recovery payment structure is designed to reflect each responsible party's share of greenhouse gas emissions during the specified period. This means that companies will not be liable for global emissions but only for those they are directly responsible for in Vermont. The calculations will be based on data provided by the state treasurer and the Agency of Natural Resources, which will establish rules for determining emissions and recovery payments.

The committee also discussed the payment process, allowing responsible parties to pay their recovery costs within six months or opt for an installment plan. However, failure to pay or bankruptcy could trigger immediate payment demands.

This legislation marks a significant step in Vermont's climate policy, aiming to hold fossil fuel companies accountable for their environmental impact while providing a structured approach to funding climate adaptation efforts. As the state moves forward, the implications of this framework could reshape the financial responsibilities of major fossil fuel entities operating within its borders.