Introduction

Vermont's recent legislation requiring oil companies to pay for climate-change damage has raised several significant legal and economic questions. This article will explore potential legal challenges and the practical implications of such a law.

Proving Anthropogenic Origin and Attribution

The first major challenge in implementing this legislation is determining the percentage of demonstrable climate-change damage in Vermont that can be proven to be of anthropogenic origin. Even more complex is identifying what percentage of anthropogenic climate change can be directly attributed to specific oil companies. Establishing clear and verifiable evidence for both of these aspects is crucial for the successful execution of the law.

Interstate Emissions and Federal Authority

The issue of in-state carbon emissions made in the course of interstate commerce is another critical legal challenge. This has been used in previous cases to grant the federal government the authority to override or overturn state legislation. Similarly, an argument could be made that Vermont's mandate for zero-carbon locomotives on interstate traffic could face challenges on constitutional grounds. The federal government may claim that it has the authority to regulate such emissions.

Alternative Approaches

One attractive approach could be for Vermont to establish a fund with significant mandated contributions from various carbon sources. The proceeds from this fund could be used to subsidize or provide grants for decarbonization efforts. However, there is a critical difference between such a fund, which focuses on promoting clean energy, and the current legislation, which is more of a tort-based approach. Requiring fines or settlements due to attributed consequences is a much stricter measure.

Practical Considerations and Economic Impact

From a practical perspective, halting all sales of gasoline and natural gas would be a drastic and likely ineffective measure. This could lead to significant economic hardships for both businesses and consumers in Vermont. The governor's statement that the state legislation will fail and highlighting the potential for voter backlash further emphasizes the need for a more practical and economically feasible approach.

Unconstitutional Challenges

There is a high likelihood that this legislation could be deemed unconstitutional. A more effective and less controversial approach would be to simply raise the gas tax. Alternatively, if oil companies like Exxon and others were to exit Vermont, the state could face a significant economic downturn, especially for businesses reliant on oil products. Finally, encouraging the use of wind and solar energy for electric vehicles by charging higher fees for gasoline could be an environmentally friendly yet economically realistic solution.

Conclusion

The enactment of this legislation poses numerous legal and practical challenges. It is essential to consider alternative approaches that are more economically viable and less likely to face constitutional scrutiny. By taking a balanced and practical approach, Vermont can make meaningful strides in addressing climate change while also ensuring the economic well-being of its citizens.