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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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On China’s H2 breakthrough, vehicle-to-grid charging, and USA Rare Earth goes to Brazil
Current conditions: In the Atlantic, Tropical Storm Fernand is heading northward toward Bermuda • In the Pacific, Tropic Storm Juliette is active about 520 miles southwest of Baja California, with winds of up to 65 miles per hour • Temperatures are surging past 100 degrees Fahrenheit in South Korea.
Nearly two weeks ago, Vineyard Wind sued one of its suppliers, GE Vernova, to keep the industrial giant from exiting the offshore wind project off the coast of Nantucket in Massachusetts. Now a U.S. court has ordered GE Vernova to finish the job, saying it would be “fanciful” to imagine a new contractor could complete the installation. GE Vernova had argued that Vineyard Wind — a 50/50 joint venture between the European power giant Avangrid and Copenhagen Infrastructure Partners — owed it $300 million for work already performed. But Vineyard Wind countered that the manufacturer remains on the hook for about $545 million to make up for a catastrophic turbine blade collapse in 2024, according to WBUR. “The project is at a critical phase and the loss of [Vineyard Wind]’s principal contractor would set the project back immeasurably,” the Suffolk County Superior Court Judge Peter Krupp wrote in his decision, repeatedly using the name of GE Vernova’s renewables subsidiary. “To pretend that [Vineyard Wind] could go out and hire one or more contractors to finish the installation and troubleshoot and modify [GE Renewables’] proprietary design without [GE Renewables’] specialized knowledge is fanciful.”
Charlotte DeWald fears the world is sleepwalking into tipping points beyond which the Earth’s natural carbon cycles will render climate change uncontrollable. By the time we realize what it means for global weather and agricultural systems that there’s no sea ice in the Arctic sometime in the 2030s, for example, it may be too late to try anything drastic to buy us more time. Much of the discourse around what to do concerns a specific kind of geoengineering called stratospheric aerosol injections, essentially spraying reflective particles into the sky to block the sun’s heat from permeating the increasingly thick layer of greenhouse gases that prevent that energy from naturally radiating back into space. That’s something DeWald, a former Pacific Northwest National Laboratory researcher and climate scientist by training who specialized in modeling aerosol-cloud interactions, knows all about. But her approach is different, using a technology known as mixed-phase cloud thinning, a process similar to cloud seeding. “The idea is that you could dissipate clouds over the Arctic to release heat from the surface to, for example, increase sea ice extent or thickness or integrity,” she told me. “There’s some early modeling that suggests that it could yield significant cooling over the Arctic Ocean.”
With all that context, you can now appreciate the exclusive bit of news I have for you this morning: DeWald is launching a new nonprofit called the Arctic Stabilization Initiative to “evaluate whether targeted interventions can slow dangerous” warming near the Earth’s northern pole. So far, ASI has raised $6.5 million in philanthropic funding toward a five-year budget goal of $55 million to study whether MCT, as mixed-phase cloud thinning is known, could help save the Arctic. The nonprofit has an advisory board stacked with veteran Arctic scientists and put together a “stage-gated” research plan with offramps in case early modeling suggests MCT won’t work or could cause undue environmental damage. The project also has an eye toward engaging with Indigenous peoples and “will ground all future work in respect for Indigenous sovereignty, before any field-based research activity is pursued.” The statement harkens to Harvard University’s SCoPEx trial, a would-be outdoor experiment in spraying reflective aerosols into the atmosphere over Sweden that ran aground after researchers initially failed to consult local stakeholders and a body representing the Indigenous Saami people in the northern reaches of Nordic nations came out against the testing. (By repeatedly invoking ASI’s nonprofit status, DeWald also seemed to draw a contrast with for-profit stratospheric aerosol injection startup Stardust Solutions, which last year Heatmap’s Robinson Meyer reported had raised $60 million.) “We are continuing to move toward critical planetary thresholds without a bible plan for things like tipping points,” DeWald said. “That was the inflection point for me.”

China just took yet another step closer to energy independence, despite its relatively tiny domestic reserves of oil and gas, kicking off the world’s largest project to blend hydrogen into the natural gas system. As part of the experiment, roughly 100,000 households in the center of the Weifang, a prefecture-level city in eastern Shandong province between Beijing and Shanghai, will receive a blend of up to 10% hydrogen through existing gas pipes. The pilot’s size alone “smashes” the world record, according to Hydrogen Insight. Whether that’s meaningful from a climate perspective depends on how you look at things. A fraction of 1% of China’s hydrogen fuel comes from electrolyzer plants powered by clean renewables or nuclear electricity. But the People’s Republic still produces more green hydrogen than any other nation. Last year, the central government made cleaning up heavy industry with green hydrogen a higher priority — a goal that’s been supercharged by the war in Iran. Therein lies the real biggest motivator now. While China relies on imports for natural gas, swapping out more of that fuel for domestically generated hydrogen allows Beijing to claim the moral high ground on emissions and air pollution — all while becoming more energy independent.
Meanwhile, China’s container ships are the latest sector to experiment with going electric and forgoing the need for costly, dirty bunker fuel. A 10,000-ton fully electric cargo vessel capable of carrying 742 shipping containers just started up operations in China this week, according to a video posted on X by China’s Xinhua News service.
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The ability of electric vehicles to serve as distributed energy resources, charging in times of low demand and discharging back onto the grid when demand peaks, has long been a dream of EV enthusiasts and DER advocates alike. California’s PG&E utility launched a small bi-directional charging program in 2023, allowing owners of Ford F-150 Lightnings to use their trucks as home backup power, and eventually feed energy back onto the grid. The utility added a host of General Motors EVs to the program back in 2025. On Monday, it announced its latest vehicle participant: Tesla’s Cybertruck. The Tesla vehicle will be the first in the program to run on alternating current, which simplifies the equipment necessary and lowers costs for consumers, according to PG&E’s announcement.
In January, I told you about the then-latest company to benefit from President Donald Trump’s dabbling in what you might call state capitalism with American characteristics: USA Rare Earth. The vertically integrated company, which aims to mine rare earths in Texas, took big leaps forward in the past year toward building factories to turn those metals into the magnets needed for modern technologies. For now, however, the company needs ore. On Monday, USA Rare Earth announced plans to buy Brazilian rare earth miner Serra Verde in a deal valued at $2.8 billion in cash and shares. The transaction is expected to be complete by the end of the third quarter of this year. The company pitched the move as a direct challenge to China, which dominates both the processing of rare earths mined at home and abroad. “The world has become too dependent on a single source and it’s high time to break that dependency,” USA Rare Earth CEO Barbara Humpton told CNBC’s “Squawk Box” on Monday.
As if we needed more evidence that the data center backlash is “swallowing American politics,” here’s Heatmap’s Jael Holzman with yet another data point: According to tracking from the Heatmap Pro database, fights against data centers now outnumber fights against wind farms in the U.S. That includes both onshore and offshore wind developments. “Taken together,” Jael wrote, “these numbers describe the tremendous power involved in the data center wars.”
Fights over AI-related developments outnumber those over wind farms in the Heatmap Pro database.
Local data center conflicts in the U.S. now outnumber clashes over wind farms.
More than 270 data centers have faced opposition across the country compared to 258 onshore and offshore wind projects, according to a review of data collected by Heatmap Pro. Data center battles only recently overtook wind turbines, driven by the sudden spike in backlash to data center development over the past year. It’s indicative of how the intensity of the angst over big tech infrastructure is surging past current and historic malaise against wind.
Battles over solar projects have still occurred far more often than fights over data centers — nearly twice as many times, per the data. But in terms of megawatts, the sheer amount of data center demand that has been opposed nearly equals that of solar: more than 51 gigawatts.
Taken together, these numbers describe the tremendous power involved in the data center wars, which is now comparable to the entire national fight over renewable energy. One side of the brawl is demand, the other supply. If this trend continues at this pace, it’s possible the scale of tension over data centers could one day usurp what we’ve been tracking for both solar and wind combined.
The enhanced geothermal darling is spending big on capex, but its shares will be structured more like a software company’s.
Fervo, the enhanced geothermal company that uses hydraulic fracturing techniques to drill thousands of feet into the Earth to find pockets of heat to tap for geothermal power, is going public.
The Houston-based company was founded in 2017 and has been a longtime favorite of investors, government officials, and the media (not to mention Heatmap’s hand-selected group of climate tech insiders) for its promise of producing 24/7 clean power using tools, techniques, and personnel borrowed from the oil and gas industry.
After much speculation as to when it would go public, Fervo filed the registration document for its initial public offering on Friday evening. Here’s what we were able to glean about the company, its business, and the geothermal industry from the filing.
The main theme of the document, known as an S-1, is the immense potential enhanced geothermal — and, thus, Fervo — has.
The company says that its Cape Station site in Utah, where it’s currently developing its flagship power plants, had “4.3 gigawatts of capacity potential” alone. That’s more than the 3.8 gigawatts of conventional geothermal capacity currently on the grid. Enhanced geothermal technology, otherwise known as EGS, “has the potential to make geothermal generation as ubiquitous as solar generation is in the U.S. today,” the company projects. (There’s about 280 gigawatts of installed solar capacity currently in the U.S., according to the Solar Energy Industries Association) “A broader subset of our reviewed leases represents over 40 gigawatts” of capacity, the document goes on.
Like all investor pitches, the S-1 features some eye-popping “total addressable market” figures. Citing analysis by the consulting firm Rystad, the document says that if there’s a sufficient shortfall in capacity due to retiring power plants (98 gigawatts by 2035), the annual market for enhanced geothermal would be approximately $70 billion by 2035, and that this would represent some $2.1 trillion in revenue potential over 30 years.
The company is already producing 3 megawatts at its Nevada Project Red site for the Nevada grid as part of a deal with Google. It also expects to begin generating power from the Cape Station site “by late 2026,” according to the filing, and get up to 100 megawatts “by early 2027.” In total, Fervo has “658 megawatts of binding power purchase agreements,” which it says represents ”approximately $7.2 billion in potential revenue backlog.”
Beyond that, Fervo says it has 2.6 gigawatts “in advanced development,” and “over 38 gigawatts” in “early-stage development,” where it’s still doing feasibility studies to “validate and confirm the path toward commercial development.”
Fervo says that the energy produced from its Cape Station facility will come in at around $7,000 per kilowatt. That’s already cheaper than “traditional and small modular nuclear power,” which the Department of Energy has estimated costs $6,000 to $10,000 per kilowatt, the filing says. Fervo is aiming to get the total project costs down to $3,000 per kilowatt, at which point it says it would outcompete natural gas without any of the price volatility due to fuel costs going up and down.
But Fervo’s upfront spending is still immense. Fervo says that it expects some $1.2 billion in capital expenditure this year, of which only $125 million is going toward the first phase of its Cape Station project, which it has said would deliver 100 megawatts of power. (Meanwhile, the $940 million it expects to spend on the second phase, which is due to be 400 megawatts, is mostly unfunded.) The company says the public offering will fund “project-level capital expenditures,” as well as land holdings and general corporate expenditures.
Google comes up some 36 times in the document, most times in reference to the “Geothermal Framework Agreement” Fervo signed with the hyperscaler this past March. The S-1 describes the deal as a “3-gigawatt framework agreement … to advance and structure potential power offtake opportunities for current and planned data centers in both grid-connected and alternative energy solutions.” This deal, the company says, “establishes a structured process for the development of geothermal projects across specified regions of the United States,” and could involve the offtake by Google of up to 3 gigawatts of Fervo-generated electricity by the end of 2033.
What the framework is not is a power purchase agreement. One of the risk factors Fervo lists in the IPO document says, “The GFA is a non-binding agreement, and does not obligate Google to purchase power from us.” Instead, it is “a binding framework under which we may propose geothermal development projects to Google, but it does not obligate Google to accept any project, execute any power purchase agreement or provide us with any project financing.”
The agreement also places limits on Fervo, including from whom it can accept investment or financing. (The deal outlines a “broad category of entities defined as competitors,” which are all no-nos.) Overall, the company says, the arrangement gives Google “significant priority over our near-term development pipeline and may limit our flexibility to pursue alternative commercial, strategic, or financing arrangements that would otherwise be available to us.”
Upon going public, the company will have two shares of stock: Class A shares available to the public, and Class B shares owned by its founders, chief executive officer Tim Latimer, and chief technology officer Jack Norbeck. These Class B shares will have 40 times the voting rights of the class A shares and will allow Latimer and Norbeck to “collectively continue to control a significant percentage of the combined voting power of our common stock and therefore are able to control all matters submitted to our stockholders for approval.”
These arrangements are familiar with venture-backed, founder-led software companies. Alphabet and Meta are the most prominent examples of large, publicly traded companies that are under the effective control of their founders thanks to dual class share structures. Tesla, rather famously, does not have a dual class share structure, which is why CEO Elon Musk convinced his board to award him more shares so that he would maintain a high degree of influence over the company.
While other technology companies such as Stripe pile up billions in revenue without any near term prospects of going public, Fervo largely has spending to report on its income statement.
In 2025, the company reported just $138,000 in revenues with a $58 million net loss; that’s compared to a $41 million net loss in 2024. The revenues were “ancillary fees associated with rights to geothermal production at Project Red,” the company said. “This type of revenue is not expected to be significant to our long-term revenue generation, as we have not yet commenced large-scale commercial operations.”
And there’s more spending to come.
Fervo expects that the second phase of its Cape Station project will “require approximately $2.2 billion in capital expenditures through 2028,” which it hopes to pay for with project-level financing.
Fervo said it is “continuing to evaluate the effect of the OBBB” — that is, the One Big Beautiful Bill Act, which slashed or curtailed tax credits for clean energy companies — and that it wasn’t able to “reasonably” estimate the effect on its financial statements by the end of last year. The company does say, however, that it “may benefit from ITCs and PTCs (including the energy community and domestic content bonuses available under the ITC and PTC, in certain circumstances) with respect to qualifying renewable energy projects,” referring to the investment and production tax credits, which acquired a strict set of eligibility rules under OBBBA. It cautioned that the current guidance regarding tax credit eligibility is “subject to a number of uncertainties,” and that “there can be no assurance that the IRS will agree with our approach to determining eligibility for ITCs and PTCs in the event of an audit.”
The company also disclosed that earlier this month, it reached a deal with Liberty Mutual, the insurance company “to sell and transfer tax credits generated at Cape Station Phase I,” taking advantage of a provision of the law that allows credits to be sold to other entities with tax liability, and not just harvested by investors in the project.