Senate advances S 259, a Climate 'Superfund' to seek cost recovery from large fossil-fuel firms

The Senate ordered a third reading of S 259, the Climate Superfund Act, after a lengthy floor debate that framed the measure as a way to make the largest fossil‑fuel companies contribute to adaptation and resiliency projects paid for by Vermont.

Sponsor and committee reporter (identified on the floor as the senator reporting the bill) said the bill is not primarily about reducing carbon emissions but about “reducing the costs for Vermont taxpayers when we have to take steps to pay for rebuilding infrastructure after severe weather events.” The bill would establish a Climate Superfund Recovery Program in statute (statutes cited on the floor as 599 and related sections) to identify responsible parties, determine proportional liability and collect payments to fund projects identified by the Agency of Natural Resources and the state's resilience implementation strategy.

Why it matters: supporters said attribution science now lets the state estimate how much damage climate change has caused locally and therefore allocate responsibility to large emitters. "Thanks to attribution science, we can measure just how much worse storms are now because of climate change," said a co‑lead sponsor, urging senators to “hold fossil fuel companies accountable for the damage they have caused.” Supporters pointed to a mix of administrative steps—notice, cost‑recovery demands, an appeals process and judicial review in Washington Superior Court—designed to make the program defensible in court.

Opponents and cautionary voices focused on legal and fiscal risks of being an early mover. One senator who requested a recorded explanation before voting framed Vermont as a small state facing potentially steep litigation and collection costs: "Of all the fossil fuel companies in the world, we're a mosquito compared to a giant... ExxonMobil alone has an annual sales of $344,600,000,000... I would much prefer to see New York or California or someone else first." That senator's remarks were given as an explanation on the roll call.

Key provisions summarized on the floor included:
- Definitions: a covered period from Jan. 1, 1995, through Dec. 31, 2024, and a "responsible party" threshold tied to aggregate emissions (floor text referenced a 1,000,000,000 metric‑ton threshold and constitutional connection requirements).
- Methodology: the Agency of Natural Resources would use the EPA's emission factors and publicly available data to attribute greenhouse gas emissions and calculate fair shares.
- Program operations: statutes would authorize the treasurer to assess costs, set timelines for payments, accept funds, and disburse them for resilience projects; audits would occur every five years.
- Legal process: the bill includes notice, administrative reconsideration and judicial review options; the Judiciary Committee framed its role as ensuring constitutional and procedural safeguards.

Roll call and next steps: a roll call was requested and reported on the floor; the Senate recorded a roll‑call sequence and then ordered a third reading of S 259. The floor record shows the Senate completed the second reading and advanced the bill for a third reading; the bill will return to the calendar for final action.

What to watch: supporters noted the bill's link to other bills on disaster response and flood mitigation already advanced by the Senate; opponents flagged the risk and called for other states to lead. The treasurer, ANR witnesses and the attorney general were recorded as having testified to committees; industry groups such as the American Petroleum Institute submitted written opposition and did not appear in person on the witness list according to committee reports.

The Senate adjourned after other calendar items; S 259 will appear for future consideration at third reading.