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Vermont is on the verge of becoming the first state to try it.

Dozens of cities and states have tried to sue the oil industry for damages related to climate change over the past several years, and so far, none of these cases has been successful. In fact, not one has even made it to trial.
In the meantime, the price tag for climate-related impacts has climbed ever higher, and states are growing more desperate for help with the bill. Out of that desperation, a new legal strategy was born, one that may have a better chance of getting fossil fuel companies to pay up. And Vermonters may be the first to benefit.
It’s called a climate superfund bill, and versions of it are floating through legislative chambers in New York, Massachusetts, and Maryland, in addition to Vermont. Though each bill is slightly different, the general premise is the same: Similar to the way the federal Superfund law allows the Environmental Protection Agency to seek funds retroactively from polluters to clean up contaminated sites, states will seek to bill fossil fuel companies retroactively for the costs of addressing, avoiding, and adapting to the damages that the emissions from their products have caused.
Though New York was the first state to introduce a climate superfund bill two years ago, Vermont may be the first to get it through a legislature. On Friday, the Vermont Senate voted 21 to five to approve amendments to the bill, and will vote next week on whether to send it to the House. An equivalent bill in the House is cosponsored by nearly two-thirds of state representatives and the policy also won the support of Vermont’s Attorney General.
If it gets past the governor’s desk, the bill will kick off a multiyear process that, in the most optimistic case, could bring money into the state by 2028. The first step is for the state Treasurer to assess the cost to Vermont, specifically, of emissions from the extraction and combustion of fossil fuels from 1995 to 2024, globally. Regulators will then request compensation from responsible parties in proportion to the emissions each company contributed. The state will identify responsible parties by focusing only on the biggest emitters, companies whose products generated at least a billion tons of emissions during that time. The money will go toward implementing a state “resilience and implementation strategy” to be mapped out in the next two years.
The idea of states retroactively billing fossil fuel companies for damages outside the context of a lawsuit might sound a little far-fetched. Or, at least, I thought it was when I first heard about it. How can that be legal?
Anthony Iarrapino, the lead lobbyist supporting the bill for the Conservation Law Foundation, a New England-based environmental law nonprofit, explained it this way. There is established case law that deals with retroactive liability in the context of hazardous waste — again, the Superfund law. “Even if your activities were legal at the time you undertook them, if they result in making a mess, then you can be on the hook for cleaning that mess,” he told me. “The idea here is looking at climate disruption as a polluted site.”
How is that fair? Well, the legal precedents supporting the Superfund law and similar policies turn on a key question. Did the companies understand that their activities were potentially harmful at the time they engaged in them? “If, objectively, you knew or should have known that your conduct, whether it was legal or not, was likely to result in damages that would impose costs on society,” Iarrapino said, “then it's fair, from a lookback perspective, to hold you accountable when those damages begin to manifest in the environment or in impacts to human health.” That’s because, according to precedent, you essentially assumed the risk that at some point in the future, you might be on the hook.
By now there’s a mountain of evidence that fossil fuel companies like Exxon did, in fact, know how damaging their products would be several decades before the period covered by the Vermont bill, based on internal research not shared with the public at the time. But Ben Edgerly Walsh, an advocate at the Vermont Public Interest Research Group, told me that even absent that evidence, they should have recognized the risk based on the scientific consensus that emerged in the 1970s and 1980s. To wit: Vermont chose 1995 as the start year for its bill because that’s when the first United Nations climate change conference was held.
“We shouldn't have to bear the cost of this ourselves,” said Walsh. “These oil companies that are still making hundreds of billions of dollars in profit annually should have to pay their fair share for the cost of the climate crisis they caused.”
Underpinning the bill — as well as many of the related lawsuits — is the advancement of “attribution science,” or the ability to quantify the economic losses that a region has borne due to anthropogenic climate change, as well as future losses that are already baked in, and then attribute them back to particular emitters. In testimony for the Vermont superfund bill, Justin Mankin, an associate professor at Dartmouth, stressed that these are peer reviewed, consensus, scientific methods — and that in general, they are conservative. “It is my opinion that we are systematically underestimating the economic cost of climate change to date,” he told the Vermont Judiciary Committee in February. “And that is because all of these climate damage cost assessment methods are inherently conservative, or limited by data.”
The bill’s sponsors also looked to research from Richard Heede, creator of the famous “Carbon Majors” database, which calculated the emissions of major fossil fuel companies based on the amount of oil, gas, and coal they each extracted and found that some 70% of fossil fuel emissions since 1988 can be attributed to 100 companies. In testimony to the Vermont Senate, Heede estimated that about 68 companies would be captured by the bill’s billion-ton threshold.
Of course, the fossil fuel industry patently disputes the science that Heede and Mankin expounded. The American Petroleum Institute submitted testimony warning of the “difficulties of establishing a conclusive link between anthropogenic climate change and alleged injuries to Vermont” and arguing that the emissions from individual companies over the last several decades cannot “be determined with great accuracy.” The group also called it “unfair” to charge the companies that sold oil and gas, considering they “did not combust fossil fuels but simply extracted or refined them in order to meet the needs and demands of the people.”
That might be where the biggest weak spot in the climate superfund bills — as well as the climate damages lawsuits — lies. There’s an underlying philosophical question, Martin Lockman, a climate law fellow at Columbia University, told me. Who in the supply chain is responsible for the pollution from fossil fuels?
The answer turns on a moral argument that fossil fuel companies have made enormous profits from fossil fuels for decades, all while knowing what the harms would be. “From a moral perspective, I think that these are very justified,” said Lockman, “but that will certainly get opened in litigation.”
If any of the climate superfund bills pass, they will absolutely be challenged in court. One reason they may see more success than the more direct lawsuits, however, is that they flip the burden of proof. If Vermont sued oil companies for damages, the burden would be on Vermont to prove its case, and as the defendants, the oil companies would get a “bag of tricks” to use to stall the case and make it very expensive to pursue, said Iarrapino. For example, many of these lawsuits have been delayed by years-long arguments over whether they should be tried in state or federal court, or whether the oil companies have to release certain documents.
“Even though it’s the same harms and the same contexts,” Iarrapino told me, “you’ve got a balance of power where they can win the case by losing slowly.” But if oil companies sue Vermont, for example, by calling its law unconstitutional, the burden of proof will be on them, and the state will have no incentive to delay the case.
I should note here that the federal Superfund law is not exactly the ideal model for this policy. Much of the time, the EPA can’t track down a company to ascribe blame for the contamination, and taxpayers end up footing the bill of the cleanup. Even when it does find a responsible party, said party often ends up litigating the amount owed for years. The Passaic River in New Jersey was declared a Superfund site 40 years ago, and the EPA is still fighting with Occidental over how much it should pay for the cleanup.
Iarrapino thinks there’s one key difference in the proposed climate superfund program. At contaminated sites, there can be a lot of potential polluters and so it’s difficult to assign blame. The Vermont bill attaches liability directly to the act of extracting and refining fossil fuels for combustion. “You either did that or you didn't do that,” he said. When it comes to companies like Exxon and BP, “that is their whole reason for existing.” That doesn’t mean companies won’t use all the firepower they have to dispute the amount they owe, however.
It may seem unfair for a single state, especially one as small as Vermont, to win compensation first when the damages are global and unequally distributed. But Lockman of Columbia said if these bills are successful, fossil fuel companies may stop fighting liability entirely and instead push the federal government to take action so they can be held to a more consistent standard across the country.
When I first reached Iarrapino, he told me that just downstairs from his office, someone was sawing and hammering the walls because the first floor had been entirely underwater when Montpelier flooded last summer. Three businesses that were in the building are gone. A recent estimate puts the cost of state-wide damages from the storm at $600 million.
“At this point,” he said, “what else does a state like Vermont have to lose?”
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The “35x35” electrification pledge and an AI pledge are on the table.
World leaders are flocking to the Mediterranean resort town of Antalya, Turkey, this weekend for the 31st United Nations Climate Change Conference, also known as COP31. The U.S., of course, will once again not attend, as President Trump not only withdrew the country from the Paris Agreement but also from the United Nations Framework Convention on Climate Change, the umbrella group that organizes the annual conferences. Still, 194 other governments will be there, putting their heads together on how to move another few inches toward a safer future.
This year, as with the last several convenings, the meeting arrives against a backdrop of geopolitical instability, worsening climate impacts, and growing concern about energy security and affordability. While conflicts like the Iran war in some ways bolster the case for the energy transition by surfacing the risks of fossil fuel dependence, prioritizing energy security can manifest as countries turning inward and showing less willingness to work for the global good.
Perhaps the biggest item on this year’s agenda is the “35x35” pledge, Turkey’s proposal to electrify 35% of the world’s final energy use by 2035, up from about 23% today. That would mean switching from gas-powered cars to electric vehicles and from burning fuels for heat to electric heat pumps. It would not necessarily mean generating all of the electricity to power those devices from clean sources, although countries have committed to triple renewable energy capacity during previous COPs. Turkey itself does not have a plan to phase out fossil fuels, and its use of coal and natural gas-fired power plants has been growing alongside renewables.
It’s not yet clear whether Turkey will encourage countries to sign onto the pledge outside of the main negotiations or try to get it into the final decision text of the conference. In a twist, the conference has two countries sharing the presidency this year, with Turkey playing host and overseeing the “action agenda” — the announcements, commitments, and dealmaking that happen outside the official negotiations — and its co-chair, Australia, mediating the formal talks.
In addition to the electrification goal, Turkey is also inviting countries to sign an artificial intelligence pledge declaring a “shared ambition to make AI part of the climate solution — sustainably powered, efficiently designed, transparently measured and available to all.” The pledge has no teeth, however, as it explicitly states that it creates “no new obligations” and notes that it should be implemented according to national priorities and circumstances.
Although there will be no big agreement like there was in Paris in 2015, the two weeks of talks will end, per usual, with a consensus document that summarizes the outcomes of the negotiations. The final text from last year’s conference in Belém, Brazil, set a new goal to triple finance for climate adaptation by 2035. Countries also agreed to create a “Just Transition Mechanism,” a program to help fossil fuel-based economies navigate the socioeconomic consequences of shifting to clean energy. But the final text at COP30 did not ultimately mention the creation of a roadmap to transition away from fossil fuels, despite more than 80 countries supporting the idea, and didn’t, in fact, mention “fossil fuels” at all.
Much of the work this year will be about building on those outcomes. The climate adaptation finance goal, for example, is still fuzzy, as the parties did not agree on a baseline year from which to triple the funding, or define what types of finance count toward the goal, meaning it’s unclear what the actual target amount for 2035 is. The Just Transition Mechanism is similarly skeletal — negotiators will need to hammer out how to operationalize it into something useful. Countries are also supposed to make progress on the Global Goal on Adaptation, an as-yet ill-defined goal first established in the Paris Agreement that negotiators are still working out how to implement.
Then there’s the overarching theme of finance. As I’ve written in the past, every annual climate conference is ultimately a fight over money — specifically how much developed countries are sending to developing countries to help them fight climate change and respond to its effects.
To date, countries have agreed to mobilize $1.3 trillion annually in climate finance from all sources for developing countries by 2035, with $300 specifically coming from developed countries. Climate finance reached record levels in 2024, the most recent year with comprehensive data, with total global flows hitting $2 trillion and funding from developed to developing countries reaching $136.7 billion.
But progress is uneven. Only 2% of global investment in renewable energy over the past two decades went to Africa, said Brian Mukhaya, a senior manager on the Clean Air Task Force’s Africa team, during a recent media briefing. Finance challenges may also collide with the conference’s electrification goal. More than 550 million people in sub-Saharan Africa lack access to electricity, Mukhaya said, and the continent will need seven to eight times current investment levels to achieve universal electricity access by 2030. Also, while the rising cost of capital is becoming an impediment to building clean energy projects everywhere in the world, the problem is acute in Africa, where the average cost of capital for power-sector investments is three to five times higher than in Europe and North America.
At COP31, negotiators will try to make progress on questions such as what form climate finance should take (grants, concessional loans, private finance, etc), how it can be more effectively distributed, and what it should be used for.
Another question hanging over this year’s conference is whether the final text will acknowledge the likelihood of surpassing 1.5 degrees Celsius of warming above pre-industrial levels, the more ambitious target laid out in the Paris Agreement. Last year’s decision text contained a tacit admission, with countries resolving to limit “the magnitude and duration of any temperature overshoot.” Doing so requires a more serious discussion of carbon removal strategies than delegates have engaged in to date.
With the world seemingly careening past the 1.5 degrees target, the annual climate talks have lost some of their luster. Critics increasingly call for a new approach. Ani Dasgupta, the president and CEO of the World Resources Institute, for example, wants the COPs to center more on accountability and holding countries to their commitments. He also recommends developing a new decision-making process that does not allow a handful of countries to block decisions. Since the substance of the negotiations is becoming more and more about how to finance the transition, he argues the conference should also broaden its tent to bring in finance ministers and central banks.
“Where we are today is different from 1992 when COPs were set up,” he said during a recent press call. “The world is different. The broader needs are different. We are at a different place in the transition. And we actually haven't reformed the system.”
Progressive candidate Jane Kim declared victory in the race for California Insurance Commissioner.
Few political wonks outside of California were likely paying much attention to the Golden State on Tuesday night, as Democrats’ anticipated blue wave crested. But the state did have one close, consequential race on the ballot: insurance commissioner. On Friday, Bernie Sanders-endorsed progressive Jane Kim won the race to lead the California Department of Insurance, which oversees the state’s $452 billion insurance market.
Kim declared victory over the more moderate State Senator Ben Allen, who was backed by the California Democratic Party, after reaching a nearly six-point lead on Friday. In a brief speech before supporters, Kim said Allen called to congratulate her that morning. (A spokesman for the Allen campaign confirmed the call to The Orange County Register.) Kim ran on a proposal for a state-run, single-payer insurance program that would cover homeowners against wildfire damage — though the plan would ultimately need approval from both the California legislature and Governor-elect Xavier Becerra.
The idea is that homeowners would automatically receive public coverage for wildfire-related losses, with payouts capped at roughly what it costs to rebuild a typical California home. Policyholders would keep their regular private insurance for other risks such as theft, burst pipes, or an ordinary kitchen fire. Kim says Californians wouldn’t pay more overall, since the money for the program would come from the share of premiums that already goes toward wildfire coverage, though each household’s bill would partly depend on its own wildfire risk.
“It would be nonprofit, and so any excess capital would stay in the state of California and would be used to drive down risk,” Kim told my colleague Matthew Zeitlin a few weeks ago. “That’s the most important piece about this actually, is that it would create another revenue stream for mitigation.”
The insurance commissioner job has taken on an increasing sense of urgency as wildfires — intensified by climate change — continue ripping through communities in California. Mounting losses from hotter, drier conditions combined with decades of new construction in the wildland-urban interface have squeezed insurers’ profits, leading many to drop policyholders in high-risk areas or simply stop writing new policies in the state altogether.
California’s homeowners insurance premiums climbed 84% between December 2020 and March of this year, according to Stanford researchers. Meanwhile, a growing number of residents have been pushed onto the state’s FAIR Plan, which my colleague Matthew described as “the barebones insurer of last resort.” The share of California’s single-family homes covered by the plan has nearly tripled over that same period, from under 2% to about 5%, as homeowners in even low- and moderate-risk wildfire areas increasingly find themselves with few alternatives.
The insurance crunch has become yet another front in California’s broader affordability crisis, alongside persistently high housing, electricity, and gasoline costs. Kim’s victory suggests frustrated voters are increasingly willing to support more radical solutions that once seemed politically out of reach. And while Kim doesn’t have a background in the insurance industry, she’s no stranger to public office. The former civil rights attorney served on the San Francisco Board of Supervisors from 2011 to 2019 before becoming a regional director for Sanders’ 2020 presidential campaign.
But throughout her run for the Insurance office, critics have continually questioned how, exactly, her plan would work. No state has attempted a public disaster insurance program like this before; critics argue there’s no relevant model to work off of, no white paper laying out the details, and no price tag attached to the idea. Kim herself acknowledges that there’s plenty of uncertainty surrounding the plan. “This is a concept and a proposal, and could look quite different by the time it works its way through the process,” she told Matthew. In other words, the program that eventually emerges from negotiations with lawmakers — if one does — could end up looking considerably different from what Kim campaigned on.
Her opponent, Allen, who chairs the state senate’s Energy, Utilities and Communications Committee, argued that creating a public wildfire insurance program would impose a significant financial burden on the state. The California Earthquake Authority, an agency that sells earthquake insurance and administers the state’s Wildfire Fund, examined the potential costs of such a program this spring, estimating it would require roughly $25 billion upfront to have a 75% chance of staying solvent for 20 years. But Kim points out in her policy brief that buying reinsurance — essentially insurance for the insurer — could cut that to about $6 billion.
Allen, on the other hand, pitched a series of reforms to the existing market, including speeding up rate reviews, rewarding homeowners and communities for wildfire mitigation, expanding financing for home-hardening projects, and discouraging development in high-risk areas.
Voters opted instead for the insurance revolution. But Kim argues that her plan isn’t totally without precedent. On the campaign trail, she frequently pointed to New Zealand, where the government’s Natural Hazards Commission provides homeowners with public coverage for disasters including earthquakes, landslides, volcanic eruptions, and tsunamis — though notably not ordinary wildfires. And while France and Spain also operate state-backed disaster insurance programs, these don’t cover wildfires either, a far more common occurrence in California than the comparably rare disasters these programs were built around abroad.
Ultimately, Kim’s ambitious plan will require a champion in the legislature to go anywhere. But in the meantime, there are other issues she could get to work on. On the campaign trail, she said she wants to push insurers to fund a disaster mitigation program run by the Department of Insurance, require companies selling auto policies in a region to also offer homeowners coverage there, and impose minimum loss ratios compelling home insurers to pay at least 65% of premiums in claims and auto insurers at least 70%. It’s unclear, however, whether Kim can implement either of the latter two proposals without new legislation.
Kim will also immediately face the question of what to do with outgoing Insurance Commissioner Ricardo Lara’s Sustainable Insurance Strategy reform package. Designed to entice insurers back to California, these new rules allow companies to set premiums using forward-looking risk models rather than relying on historical losses, and to pass a portion of their rising reinsurance costs onto policyholders. In exchange, insurers are required to write more policies in wildfire-prone areas.
Kim has criticized this approach, arguing that insurers have exploited loopholes to raise premiums on lower-risk customers while continuing to underserve high-risk communities, all without doing enough to address the underlying factors driving wildfire risk.
That leaves Kim in a tricky situation. Until she is able to secure legislative backing for some version of her proposed public insurance program, she’ll have to decide whether to scrap or simply build on the existing reforms. She hasn’t yet laid out any plan for doing so. But whatever direction she takes could ultimately reshape California’s insurance market well before a new state insurer gets off the ground.
They only ticked up by 5% this week.
Beyond the repudiation of Donald Trump, if there was one message voters sent on election night, it was that they really don’t like data centers.
Democrats who ran against rampant data center development won at both the gubernatorial level (Amy Acton in Ohio, Gina Hinojosa in Texas) and the senatorial level (Abdul El-Sayed in Michigan, Annie Andrews in South Carolina). The Wall Street Journal counted 125 Democrats nationwide who “targeted their opponents over data centers.”
“Data centers are the midterms’ other big loser,” according to Politico. “The Results Are In: Voters Hate Data Centers,” from Wired.
Commentators didn’t just notice that many anti-data-center candidates won, but that a number of local data center moratoria passed as well. “In nearly every case, it’'s about 67-80% opposing data centers. True in California, Ohio, everywhere,” Brad Carson, head of the artificial intelligence policy group Americans for Responsible Innovation tweeted. Added Democratic strategist David Shor on X, “Voters sided against data centers in 40 of 41 ballot measures, with basically no correlation to how red a county was.”
But as far as new legislation and ordinances go, November 3 was just another Tuesday in the long-running local campaign against data center development, Heatmap Pro data shows.
“Forty is a lot in one day,” Owen Curtin, a data analyst with our intelligence platform Heatmap Pro, admitted, but “in terms of the rate at which county governments are enacting legislation and the overwhelming public support for them, it’s not new.”
There have been over 830 restrictive measures passed this year, according to analysis from Heatmap Pro, which breaks down to just over 80 per month. The numbers picked up substantially in the summer and fall.

June 15 to 21 was the busiest week of the year for passing data center laws, at 35, and June the month with the most laws passed overall, with 133. Another95 restrictive laws were passed in July, followed by 86 in October.
Of the 40 ballot measures passed this week, only one applied at the county level (Morgan County, Illinois), where a great deal of data center permitting occurs. “While many municipalities permit data centers, a significant portion are permitted by county governments. Not all counties have the legal authority to pursue ballot measures, which is why most November 2 measures were at the municipal level,” Curtin explained.
“While the overwhelming support for local data center ballot measures is indicative of public sentiment (largely anti-data center), it doesn’t necessarily correlate with the regulatory landscape,” he went on. And here’s a fun fact: “There are over 19,000 municipalities in the U.S., so 40 bans are only 0.2% of all municipalities,” Curtain added. “If 40 municipalities banned data centers every day, it would take 475 days to ban data centers across the entire U.S.”