Virginia lawmakers weigh ‘climate superfund’ legislation By EPN Staff Virginia lawmakers are exploring a proposal that mirrors Vermont’s landmark 2024 “Climate Superfund Act” to pay for storm-related infrastructure upgrades and healthcare services for residents affected by extreme weather events. Bills introduced in Virginia’s House of Delegates and Senate would establish an “Extreme Weather Relief Fund,” requiring businesses to pay fines if the commonwealth deems them responsible for emitting more than 1 billion metric tons of greenhouse gases between 1995 and 2024. Why it matters The legislation provides a path for funding “extreme weather relief projects” ranging from repairing stormwater management systems to retrofitting flooded sewage treatment plants and upgrading the electrical grid. The model has raised questions about the cost for consumers, how emissions will be attributed to responsible parties, and whether it is constitutional for a state to retroactively penalize energy companies. New York approved similar legislation in December 2024, and similar proposals are being considered in Maryland and New Jersey. In early January, the U.S. Chamber of Commerce and the American Petroleum Institute filed a lawsuit challenging Vermont’s legislation. “There is so much to legitimately legally challenge with these laws or bills you almost don’t know where to start,” said Ray Cantor, the deputy chief government affairs officer at the New Jersey Business & Industry Association. Deeper context In the states that have approved or are considering climate superfund legislation, carbon emissions have declined during the legislation’s covered period or through 2022, the most recent year in which federal data is available: Virginia: – 7% (1995 – 2022) Vermont: – 8% (1995 – 2022) New York: – 17% (2000 to 2018) New Jersey: – 25% (1995 to 2022) Maryland: – 22% (2000 to 2018) Between 1995 and 2022, U.S. carbon emissions declined by 6 percent. In the same period, carbon emissions in China skyrocketed, making it the highest emitter in the world with more than twice the carbon emissions of the U.S. Calculating costs The fiscal impact of Virginia’s legislation is not known. The oil and gas industry says it supports 185,000 Virginia jobs and contributes $27 billion to the state economy. In Vermont, the fiscal impact was incalculable last year, when more than 70 percent of the state’s legislators voted for the bill. Vermont Gov. Philip Scott refused to sign it, explaining he would allow the measure to take effect without his signature because of his concerns “about both short- and long-term costs and outcomes.” Vermont’s legislative joint fiscal office anticipated the law would face litigation and uncertainty. “Any legal action could drag on for years, especially if Vermont is the first state to require such cost recovery payments,” the office reported. “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.”