Alabama Attorney General Steve Marshall has joined a coalition of 24 states in challenging Vermont's Climate Superfund Act. The law, similar to one recently enacted by New York, imposes significant retroactive penalties on coal, oil, and natural gas suppliers in the United States. It targets energy producers for their contributions to global greenhouse gas emissions from 1995 to 2024, with no cap on the fines that could reach billions of dollars. The act applies regardless of compliance with federal environmental standards or the benefits Vermont and its citizens have gained from affordable fuel.
"Vermont’s action is both unlawful and deeply misguided," stated Attorney General Steve Marshall. "For decades, Vermont has relied on essential energy resources and never complained. Yet now it seeks a way to extract huge sums from the American companies that have powered Vermont’s economy—indeed, the global economy. We should be lockstep in our ambition to secure affordable, reliable energy for all Americans and for the future of American prosperity. I will take the fight wherever political ideology stands in the way of that future."
The lawsuit argues that Vermont's Climate Superfund Act will harm traditional energy producers, forcing them to reduce operations, leading to job losses and price increases. It also suggests a shift in power production to countries like China, India, Iran, and Russia with fewer environmental regulations.
In line with his Executive Orders protecting national energy interests, former President Trump promised federal support against such laws. Following this promise, the U.S. Department of Justice filed a lawsuit challenging Vermont's legislation.
The coalition led by West Virginia seeks to join an existing suit filed by the U.S. Chamber of Commerce and the American Petroleum Institute in the U.S. District Court of Vermont. The suit names Julie Moore, Secretary of the Vermont Agency of Natural Resources, and Jane Lazorchak, Director of its Climate Action Office as defendants.
The coalition requests an injunction declaring the Act unconstitutional and preempted by federal statutes.
States including Alabama, West Virginia, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Missouri, Montana, Nebraska, North Dakota, Ohio Oklahoma South Carolina South Dakota Tennessee Texas Utah and Wyoming are looking to join this legal effort.