United State of America v. Vermont
Overview
Overview
The Trump administration sued Vermont over a state law, the Climate Superfund Act, that require companies that extract and refine fossil fuels to contribute to a fund that pays for damages caused by climate change.
The Issue
Issue
Whether Vermont's Climate Superfund Act, which mandates that companies extracting and refining fossil fuels contribute to a climate damage remediation fund, violates the dormant Commerce Clause by burdening or discriminating against interstate commerce.
The Rules
Rule
State statutes that substantially burden interstate commerce are unconstitutional under the dormant Commerce Clause unless they serve a legitimate local purpose and no reasonable nondiscriminatory alternative means exists to accomplish that purpose.
The Application
Analysis
Vermont's law imposes compliance costs and financial obligations on fossil fuel companies engaged in extraction and refining, including operations in other states, creating a direct burden on interstate commerce in energy production.
The Conclusion
Conclusion
The litigation remains active and pending before Judge Mary Kay Lanthier in Vermont District Court; the court will determine whether Vermont's environmental remediation interests justify the law's burden on interstate commerce.
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