[ECO]Proposed Polluters Pay Climate Fund Act Seeks to Hold Polluters Accountable for Climate Costs

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Lawmakers have introduced the Polluters Pay Climate Fund bill to make fossil fuel companies pay $100 billion annually for climate-related damages.

Amid a surge in climate-related disasters across the United States, Democratic lawmakers have introduced federal legislation to make major fossil fuel companies pay for the escalating

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. The proposed Polluters Pay Climate Fund Act aims to generate $100 billion annually for a decade by taxing the nation’s largest fossil fuel extractors and refiners. The move builds on state-level initiatives, including a pioneering climate liability law enacted in Vermont earlier this year.

Introduced on September 12 by Senator Chris Van Hollen of Maryland and Representatives Jerry Nadler of New York and Judy Chu of California, the bill would establish a Polluters Pay Climate Fund. Companies that have contributed over one billion tons of

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from 2000 to 2022 would be required to pay into the fund, including foreign firms operating in the U.S. Payments would be based on each company’s share of global greenhouse gas emissions.

Revenue generated from the fund would support climate mitigation and adaptation efforts, such as strengthening infrastructure against extreme weather, addressing pollution in frontline communities, and aiding in disaster recovery. “This fund would be a big, big step forward in our efforts to address the damages caused by climate change,” Van Hollen stated.

The legislation, modeled after the federal Superfund law, echoes previous efforts to make polluters pay for the environmental harm they have caused. The Superfund law, enacted in 1980, required industries responsible for hazardous waste sites to fund cleanup efforts. While the law initially relied on taxes on the chemical and petroleum industries, those taxes expired in 1995, leaving taxpayers to shoulder much of the financial burden. Advocates of the Polluters Pay Climate Fund Act argue that it updates and extends the “polluter pays” principle to address the pressing and widespread threat of climate change.

The federal initiative follows Vermont’s passage of the nation’s first Climate Superfund Act in May, which similarly holds polluters financially accountable for climate damages. Other states, including New York, Massachusetts, Maryland, California, and New Jersey, are advancing their own versions of polluter-pays legislation. New York’s state legislature has passed such a bill, and pressure is mounting on Governor Kathy Hochul to sign it into law.

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The Polluters Pay Climate Fund would compensate people and small businesses impacted by the effects of climate change. Licensed under the Unsplash+ License

The Polluters Pay Climate Fund Act includes language ensuring it does not preempt existing state laws or ongoing climate lawsuits. More than two dozen state and municipal governments across the U.S. have sued major oil and gas companies, accusing them of misleading the public on the

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and their role in global warming.

Environmental advocates have applauded the proposed federal legislation as a necessary escalation in holding fossil fuel companies accountable. Sara Chieffo, vice president of government affairs at the League of Conservation Voters, praised the measure for building on state-level successes, while Cassidy DiPaola of the Make Polluters Pay campaign highlighted its role in raising national awareness.

However, the legislation faces significant challenges in Congress, where partisan gridlock often stymies ambitious climate proposals. Van Hollen acknowledged the difficulty of securing immediate passage but stressed the importance of sustained advocacy. “These bills don’t pass overnight. But when you build that momentum and public energy, you can get them over the finish line,” he said.

The

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, represented by the American Petroleum Institute, has yet to issue a response. Critics often argue that such measures could increase production costs and harm the economy, though proponents counter that the bill specifically targets major polluters and avoids raising energy prices for consumers.

While the bill’s chances of passing in the current congressional session remain slim, its introduction reflects growing momentum for climate accountability at all levels of government. By forcing fossil fuel companies to pay for the damages their emissions have caused, lawmakers hope to alleviate the financial burden on taxpayers and provide communities with resources to adapt to an increasingly volatile climate.

Lauren Hierl, executive director of the Vermont Natural Resources Council, underscored the stakes, noting, “Small, rural communities around the country can’t bear these burdens alone. We’re excited to see the introduction of the federal Polluters Pay Climate Fund Act.”

The Polluters Pay Climate Fund Act represents an effort to revive and modernize the polluter-pays principle established decades ago, adapting it to the global scale and urgency of the climate crisis. “The enormity of the climate crisis really can’t be overstated,” DiPaola said. “This legislation aims to rebalance the scales of justice.”

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