Democrats to move Federal Bill to make climate polluters pay

Washington: United States Sen. Chris Van Hollen and Rep. Jerry Nadler on Thursday announced the introduction of legislation that would require Big Oil firms to pay into a damages fund used to address the climate crisis.

The Polluters Pay Climate Fund Act, requires the largest U.S.-based fossil fuel extractors and oil refiners and foreign-owned companies doing business in the U.S. to pay into a $1 trillion Polluters Pay Climate Fund, with their contributions based on a percentage of their global emissions. The Fund would then be used to finance a wide range of efforts to tackle the impacts of climate change.

Said Representative Jerrold Nadler: “American taxpayers have been unfairly burdened with the costs of mitigating the destructive effects of the climate crisis. It is long past time for our nation to prioritize the health and well-being of our communities over the interests of the fossil fuel industry. That’s why I’m proud to introduce the Polluters Pay Climate Fund Act with Senator Van Hollen and Representative Chu to finally force the fossil fuel industry to pay its fair share to address the damage it has inflicted on our planet, and help the American people tackle this crisis head-on.”

The Polluters Pay Climate Fund Act, which Van Hollen first proposed in 2021, would levy charges on the largest companies that extract and refine fossil fuels in the U.S., based on a Superfund model. It would create a $1 trillion fund to “address harm and damages caused,” with a significant proportion of the money spent on environmental justice in affected communities, Van Hollen said.

“We all agree on a simple but powerful principle—that polluters should pay to clean up the mess that they have caused, and those that have polluted the most should pay the most,” Van Hollen said at a press conference. Jamie Henn, director of Fossil Free Media, indicated that the proposal was groundbreaking. “We’re thrilled to be supporting the first ever federal bill that would make polluters pay for climate damages!” Henn wrote on social media.

The new bill targets only the “heaviest hitters,” as Van Hollen put it: companies responsible for at least 1 billion tons of carbon dioxide emissions in the period between 2000 and 2022. The levies they face would be directly proportional to the amount of oil, gas, and coal extracted or refined, as determined by the U.S. Treasury and the U.S. Environmental Protection Agency.

In addition to Van Hollen and Nadler (D-N.Y.), the bicameral legislation was also introduced by Rep. Judy Chu (D-Calif.). It has five co-sponsors in the Senate, including Sen. Bernie Sanders (I-Vt.), and more than a dozen co-sponsors in the House of Representatives, including Rep. Alexandria Ocasio-Cortez (D-N.Y.). Many state legislatures have considered “polluters pay” climate bills in recent years, and Vermont passed one in May. Van Hollen said a federal bill “would be a big, big step forward.”

The bill has the backing of many dozens of environmental organizations around the country, several of which had representatives at Thursday’s press conference. “The fossil fuel industry has known about climate change for decades,” Sara Chieffo, a vice president at the League of Conservation Voters, said at the event. “It’s time they face the consequences of their deception and are held responsible for their actions that are destroying both lives and a livable, safe climate.”

Phil Radford, Sierra Club’s chief strategy officer, added that “for way too long, these companies have poisoned communities, spilled oil, polluted our air, caused all sorts of health problems, and gotten away with it.” “Today is an incredible moment where we are saying: No more,” he said.

Advocates indicated that at least 40% of the funds would go toward environmental justice.