Montgomery, AL – Alabama Attorney General Steve Marshall has joined a coalition of 24 states challenging Vermont’s Climate Superfund Act, which imposes retroactive penalties on coal, oil, and natural gas suppliers for their contributions to greenhouse gas emissions between 1995 and 2024.
The lawsuit, filed in the U.S. District Court of Vermont, seeks to join an existing case brought by the U.S. Chamber of Commerce and the American Petroleum Institute. The coalition is asking the court to issue an injunction and declare the Act unconstitutional and preempted by federal statutes.
“Vermont’s action is both unlawful and deeply misguided,” Marshall stated. “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.”
The states challenging the law argue that the uncapped fines could potentially reach billions of dollars and would impact energy producers regardless of their compliance with federal environmental standards. According to the lawsuit, the Act could lead to operational cutbacks, job losses, and increased energy prices.
Critics of the legislation also contend it may shift energy production to countries with fewer environmental regulations, such as China, India, Iran, and Russia, which would likely not face similar penalties from Vermont.
The U.S. Department of Justice has also filed a separate lawsuit challenging Vermont’s law, following through on President Trump’s executive orders aimed at protecting energy interests.
The coalition of states joining the challenge includes 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.
The lawsuit names Secretary of the Vermont Agency of Natural Resources Julie Moore and Director of the Vermont Agency of Natural Resources Climate Action Office Jane Lazorchak as defendants.
