The U.S. Chamber of Commerce and an oil group are suing the state of Vermont over a law that requires companies to pay for damages caused by climate change

The U.S. Chamber of Commerce and a major oil and gas industry trade group submitted an application Lawsuit against Vermont Because of its new law requiring fossil fuel companies to pay a share of damages caused by climate change.

The federal lawsuit, filed Monday, urges a state court to block the state from enforcing the law, which lawmakers passed last year, according to the Associated Press. The state said it is working on a cost estimate of climate change dating back to 1995.

The outlet noted that Vermont became the first state in the country to enact a law of its kind after suffering catastrophic summer flooding and damage from other extreme weather.

Chamber and the American Petroleum Institute Argue in lawuiThe Associated Press reported that the U.S. Constitution prohibits this law and that state law is preempted by the federal Clean Air Act. The lawsuit also says the law violates the Domestic and Foreign Commerce Clauses by discriminating against “important interests of other states by targeting large energy companies located outside Vermont.”

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Prosecutors say the federal government is already addressing Climate changeaccording to the report. The plaintiffs add that since greenhouse gases come from billions of individual sources, it is impossible to “accurately and fairly” measure the impact of emissions from a particular entity at a particular location over several decades.

“Vermont wants huge, retroactive penalties going back 30 years for lawful out-of-state conduct regulated by Congress under the Clean Air Act,” said Tara Morrissey, senior vice president and deputy chief counsel of the chamber’s Litigation Center. , according to the report. “This is illegal and violates the structure of the U.S. Constitution — no single state can try to regulate a global issue that is best left to the federal government. Vermont’s sanctions will ultimately raise costs for consumers in Vermont and across the country.”

The law requires the Vermont State Treasurer, in consultation with the Natural Resources Agency, to issue a report by January 15, 2026, on the total cost to the state and its residents of emitting greenhouse gases from January 1, 1995, through December 31, 2024. The review will examine the effects of greenhouse gases on Various fields, including public health, natural resources, agriculture, economic development and housing.

The state will use federal data to determine whether the amount of covered greenhouse gas emissions can be traced back to the fossil fuel company.

The state could use the share of funds collected from businesses for things like improving stormwater drainage systems, upgrading roads and bridges, raising or modernizing wastewater treatment plants and making energy-efficient weatherization upgrades to public and private buildings.

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The law in Vermont has captured the attention of other states, including New York, where a similar bill was signed into law last month.

New York law requires companies responsible for large greenhouse gas emissions to pay money into a state fund for infrastructure projects to repair or prevent future damage from climate change, and the largest companies emitting greenhouse gases between 2000 and 2018 will face fines.