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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 offshore wind developer was in the process of completing necessary repairs when the administration issued its stop work order, according to court filings.
In the Atlantic ocean south of Massachusetts, 10 wind turbine towers, each 500 feet tall, stand stripped of their rotary blades. Stuck in this bald state due to the Trump administration’s halt on offshore wind construction, the towers are susceptible to lightning strikes and water damage. This makes them a potential threat to public safety, according to previously unreported court filings from the project developer, Vineyard Wind.
The company filed for an injunction against Trump’s stop work order last week. The order posed a unique threat to Vineyard Wind, as the project is 95% complete and its contract with a key construction boat is set to expire on March 31, the filing said. “If construction is not completed by that date, the partially completed wind turbines will be left in an unsafe condition and Vineyard Wind will incur a series of financial consequences that it likely could not survive,” the company wrote.
One of the final tasks the company was working on was replacing faulty blades on nearly two dozen turbine towers. In July 2024, one of the installed blades snapped in two, sending fiberglass and other debris crashing into the sea and eventually onto the beaches of Nantucket. The incident revealed a manufacturing defect at the Canadian factory where the blades were made. After multiple investigations into the incident, the company reached an agreement with the Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement to replace the defective equipment with blades produced at a different factory in France.
Trump’s construction freeze contained an exception for activities “necessary to respond to emergency situations and/or to prevent impacts to health, safety, and the environment.” So after the order came down on December 22, Vineyard Wind reached out to the relevant regulators and asked permission to continue its blade replacement process on safety grounds, the company explained in court filings. BSEE responded that the company could remove the faulty blades on the 10 remaining towers, but could not replace them.
The decision highlights an apparent double standard in the administration’s considerations of public safety. The stop work order itself was intended to “protect the American people,” according to Secretary of the Interior Doug Burgum. Yet the agency has refused to let construction move forward to mitigate risks created by the stoppage.
Testimony submitted by Steven Simkins, Vineyard Wind’s Wind turbine team lead, describes the dangers of leaving the towers bladeless for an extended period of time — a risk compounded by the ticking clock on the company’s construction boat contract. “The wind turbine was designed to be constructed completely and only be in a hammerhead state, without blades, for a brief amount of time during installation,” Simkins wrote.
He warned of three main liabilities. First, the towers are equipped with a lightning protection system, but the system’s receptors and conductors extend along the blades. Without the blades, the towers are essentially lightning rods, at risk of igniting an electrical fire, Simkins explained.
The three giant holes where the blades would be installed are also sitting open, with tarps covering them as temporary protection. That means that water, ice, and humidity could get into the nacelle, the top part of the tower that houses all of the electrical and mechanical systems, which are not designed to weather this kind of exposure. “Not only will this lead to prolonged offshore work replacing damaged equipment but it also puts the safety of the workers at risk,” Simkins wrote. “Electrical cabinets that have experienced some level of corrosion become less safe and increase the risk of an arc flash event.”
Lastly, the 500-foot towers are being roiled by winter wind and waves, which causes them to sway. The blades are designed to capture that wind, reducing its force on the towers. Without them, the “fatigue” on the towers will be exacerbated, “and the design has accounted for a limited amount of such fatigue over the total life of the structure.”
Court documents show that Vineyard Wind — the last of five affected companies to file for an injunction against Trump’s stop work order — held off on litigation as it made multiple attempts to convince the administration that completing blade installation was necessary to mitigate safety risks.
Vineyard Wind also sent BSEE verification of its safety claims by DNV Energy Systems, a Danish company it was required to retain to “ensure that the Project is installed in accordance with accepted engineering practices and, when necessary, to provide reports to BSEE regarding incidents affecting Critical Safety Systems.” But BSEE disagreed and denied Vineyard Wind’s request.
The Trump administration filed a response in the case on Tuesday, with BSEE’s Principal Deputy Director Kenneth Stevens testifying that the bureau’s technical personnel had “determined that there should be no structural issues associated with the tower and nacelle-only configuration if they were installed correctly.” He noted that the towers had been “routinely left in this configuration repeatedly” while the project was under construction over the past year and a half “with no reported adverse impacts to safety.”
Vineyard Wind did not respond to a request for comment on that assertion. A hearing in the case is scheduled for Friday. Three separate district judges have already granted injunctions to offshore projects affected by the stop work order: Revolution Wind, Empire Wind, and Dominion Energy’s Coastal Virginia offshore wind project. Each judge found that the companies were “likely” to succeed in showing that the stop work order violated the Administrative Procedures Act, and allowing them to continue construction.
Jael Holzman contributed reporting.
One of the buzziest climate tech companies in our Insiders Survey is pushing past the “missing middle.”
One of the buzziest climate tech companies of the past year is proving that a mature, hitherto moribund technology — conventional geothermal — still has untapped potential. After a breakthrough year of major discoveries, Zanskar has raised a $115 million Series C round to propel what’s set to be an investment-heavy 2026, as the startup plans to break ground on multiple geothermal power plants in the Western U.S.
“With this funding, we have a six power plant execution plan ahead of us in the next three, four years,” Diego D’Sola, Zanskar’s head of finance, told me. This, he estimates, will generate over $100 million of revenue by the end of the decade, and “unlock a multi-gigawatt pipeline behind that.”
The size of the round puts a number to climate world’s enthusiasm for Zanskar. In Heatmap’s Insider’s Survey, experts identified Zanskar as one of the most promising climate tech startups in operation today.
Zanskar relies on its suite of artificial intelligence tools to locate previously overlooked conventional geothermal resources — that is, naturally occurring reservoirs of hot water and steam. Trained on a combination of exclusive subsurface datasets, modern satellite and remote sensing imagery, and fresh inputs from Zanksar’s own field team, the company’s AI models can pinpoint the most promising sites for exploration and even guide exactly what angle and direction to drill a well from.
Early last year, Zanskar announced that it had successfully revitalized an underperforming geothermal power plant in New Mexico by drilling a new pumped well nearby, which has since become the most productive well of this type in the U.S. That was followed by the identification of a large geothermal resource in northern Nevada, where exploratory wells had been drilled for decades but no development had ever occurred. Just last month, the company revealed a major discovery in western Nevada — a so-called “blind” geothermal system with no visible surface activity such as geysers or hot springs, and no history of exploratory drilling.
“This is a site nobody had ever had on the radar, no prior exploration,” Carl Hoiland, Zanskar’s CEO, told me of this latest discovery, dubbed “Big Blind.” He described it as a tipping point for the industry, which had investors saying, “Okay, this is starting to look more like a trend than just an anomaly.”
Spring Lane Capital led Zanskar’s latest round, which also included Obvious Ventures, Union Square Ventures, and Lowercarbon Capital, among others. Spring Lane aims to fill the oft-bemoaned “missing middle” of climate finance — the stage at which a startup has matured beyond early-stage venture backing but is still considered too risky for more traditional infrastructure investors.
Zanskar now finds itself squarely in that position, needing to finance not just the drills, turbines, and generators for its geothermal plants, but also the requisite permitting and grid interconnection costs. D’Sola told me that he expects the company to close its first project financing this quarter, explaining that its ambitious plans require “north of $600 million in total capital expenditures, the vast majority of which will come from non-dilutive sources or project level financing.”
Unsurprisingly, the company anticipates that data centers will be some of its first customers, with hyperscalers likely working through utilities to secure the clean energy attributes of Zanskar’s grid-connected power. And while the West Coast isn’t the primary locus of today’s data center buildout, Hoiland thinks Zanskar’s clean, firm, low-cost power will help draw the industry toward geothermally rich states such as Utah and Nevada, where it’s focused.
“We see a scenario where the western U.S. is going to have some of the cheapest carbon-free energy, maybe anywhere in the world, but certainly in the United States.” Hoiland told me.
Just how cheap are we talking? Using the levelized cost of energy — which averages the lifetime cost of building and operating a power plant per unit of electricity generated — Zanskar plans to deliver electricity under $45 per megawatt-hour by the end of this decade. For context, the Biden administration set that same cost target for next-generation geothermal systems such as those being pursued by startups like Fervo Energy and Eavor — but projected it wouldn’t be reached 2035.
At this price point, conventional geothermal would be cheaper than natural gas, too. The LCOE for a new combined-cycle natural gas plant in the U.S. typically ranges from $48 to $107 per megawatt-hour.
That opens up a world of possibilities, Hoiland said, with the startup’s’s most optimistic estimates showing that conventional geothermal could potentially supply all future increases in electricity demand. “But really what we’re trying to meet is that firm, carbon-free baseload requirement, which by some estimates needs to be 10% to 30% of the total mix,” Hoiland said. “We have high confidence the resource can meet all of that.”
On New Jersey’s rate freeze, ‘global water bankruptcy,’ and Japan’s nuclear restarts
Current conditions: A major winter storm stretching across a dozen states, from Texas to Delaware, and could hit by midweek • The edge of the Sahara Desert in North Africa is experiencing sandstorms kicked up by colder air heading southward • The Philippines is bracing for a tropical cyclone heading toward northern Luzon.
Mikie Sherrill wasted no time in fulfilling the key pledge that animated her campaign for governor of New Jersey. At her inauguration Tuesday, the Democrat signed a series of executive orders aimed at constraining electricity bills and expanding energy production in the state. One order authorized state utility regulators to freeze rate hikes. Another directed the New Jersey Board of Public Utilities “to open solicitations for new solar and storage power generation, to modernize gas and nuclear generation so we can lower utility costs over the long term.” Now, as Heatmap’s Matthew Zeitlin put it, “all that’s left is the follow-through,” which could prove “trickier than it sounds” due to “strict deadlines to claim tax credits for renewable energy development looming.”
Last month, the environmental news site Public Domain broke a big story: Karen Budd-Falen, the No. 3 official at the Department of the Interior, has extensive financial ties to the controversial Thacker Pass lithium mine in northern Nevada that the Trump administration is pushing to fast track. Now The New York Times is reporting that House Democrats are urging the Interior Department’s inspector general to open an investigation into the multimillion-dollar relationship Budd-Falen’s husband has with the mine’s developer. Frank Falen, her husband, sold water from a family ranch in northern Nevada to the subsidiary of Lithium Americas for $3.5 million in 2019, but the bulk of the money from the sale depended on permit approval for the project. Budd-Falen did not reveal the financial arrangement on any of her four financial disclosures submitted to the federal government when she worked for the Interior Department during President Donald Trump’s first term from 2018 to 2021.
House Republicans, meanwhile, are planning to vote this week to undo Biden-era restrictions on mining near more than a million acres of Minnesota wilderness. “Mining is huge in Minnesota. And all mining helps the school trust fund in Minnesota as well. So it benefits all schools in the state,” Representative Pete Stauber, a Minnesota Republican and the chair of the Natural Resources Subcommittee on Energy and Mineral Resources, said of the rule-killing bill he sponsored. While the vote is expected to draw blowback from environmentalists, E&E News noted that it could also agitate proceduralists who oppose the GOP’s continued “use of the rule-busting Congressional Review Act for actions that have not been traditionally seen as rules.” Still, the move is likely to fuel the dealmaking boom for critical minerals. As Heatmap’s Katie Brigham wrote in September, “everybody wants to invest” in startups promising to mine and refine the metals over which China has a near monopoly.
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A new United Nations report declares that the world has entered an era of “global water bankruptcy,” putting billions of people at risk. In an interview with The Guardian, Kaveh Madani, the report’s lead author, said that while not every basin and country is directly at risk, trade and migration are set to face calamity from water shortages. Upward of 75% of people live in countries classified as water insecure or critically water insecure, and 2 billion people live on land that is sinking as groundwater aquifers collapse. “This report tells an uncomfortable truth: Many critical water systems are already bankrupt,” Madani said. “It’s extremely urgent [because] no one knows exactly when the whole system would collapse.”

The Democratic Republic of the Congo has given the U.S. government a vetted list of mining and processing projects open to American investment. The shortlist, which Mining.com said was delivered to U.S. officials last week, includes manganese, gold, and cassiterite licenses; a copper-cobalt project and a germanium-processing venture; four gold permits; a lithium license; and mines producing cobalt, gold, and tungsten. The potential deals are an outgrowth of the peace agreement Trump brokered between the DRC and Rwanda-backed rebels, and could offer Washington a foothold in a mineral-rich country whose resources China has long dominated. But establishing an American presence in an unstable African country is a risky investment. As I reported for Heatmap back in October, the Denver-based Energy Fuels’ $2 billion mining project in Madagascar was suddenly thrown into chaos when the island nation’s protests resulted in a coup, though the company has said recently it’s still moving forward.
The Tokyo Electric Power Company is delaying the restart of the Kashiwazaki Kariwa nuclear power station in western Japan after an alarm malfunction. The alarm system for the control rods that keep the fission reaction in check failed to sound during a test operation on Tuesday, Tepco said. The world’s largest nuclear plant had been scheduled to restart one of its seven reactors on Tuesday. Fuel loading for the reactor, known as Unit 6, was completed in June. It’s unclear when the restart will now take place.
The delay marks a setback for Prime Minister Sanae Takaichi, who has made restarting the reactors idled after the 2011 Fukushima disaster and expanding the nuclear industry a top priority, as I told you in October. But as I wrote last month in an exclusive about Japan’s would-be national small modular reactor champion, the country has a number of potential avenues to regain its nuclear prowess beyond just reviving its existing fleet.
As a fourth-generation New Yorker, I’m qualified to say something controversial: I love, and often even prefer, Montreal-style bagels. They’re smaller, more efficient, and don’t deliver the same carbohydrate bomb to my gut. Now the best-known Montreal-style bagel place in the five boroughs has found a way to use the energy needed to make their hand-rolled, wood-fired bagels more efficiently, too. Black Seed Bagels’ catering kitchen in northern Brooklyn is now part of a battery pilot program run by David Energy, a New York-based retail energy provider. The startup supplied suitcase-sized batteries for free last August, allowing Black Seed to disconnect from ConEdison’s grid during hours when electricity rates are particularly high. “We’re in the game of nickels and dimes,” Noah Bernamoff, Black Seed’s co-owner, told Canary Media. “So we’re always happy to save the money.” Wise words.