Van Hollen, Nadler, Chu Introduce Legislation to Make Polluters Pay for Fueling Climate Change

September 12, 2024

Van Hollen, Nadler, Chu Introduce Legislation to Make Polluters Pay for Fueling Climate Change

Today, U.S. Senator Chris Van Hollen (D-Md.) and U.S. Representatives Jerry Nadler (D-N.Y.) and Judy Chu (D-Calif.) introduced legislation to require the biggest polluters to begin paying their fair share to confront 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.

"From sweltering heat waves to rising sea levels to ever more intense storms, our planet is screaming out every day for us to take action on global warming. And after fueling the climate crisis for decades, big polluters can no longer run from their responsibility to address the harm they have done. The principle behind this legislation is simple but very powerful - polluters should pay to clean up the mess they made and build a more resilient future, and those who have polluted the most should pay the most," said Senator Chris Van Hollen.

"For over 60 years, the fossil fuel industry has been fully aware of its role in driving the climate crisis. Despite this, the industry has done little to nothing to address the harmful effects their practices have had on the environment and public health," said Representative Jerrold Nadler. "Instead, 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."

"Right now, wildfires are raging in and around my district in Southern California due to yet another year of record-breaking heat and wind conditions, and historic droughts, unprecedented winter storms, and other extreme weather disasters devastate communities around the country. The fossil fuel corporations responsible for worsening the climate crisis continue to reap massive profits while assuming none of the cost for the harmful emissions they produce, leaving taxpayers on the hook to pay the price. It's past time for these corporations to pay their fair share and help fund our work to address the climate catastrophe they helped create, so we're introducing the Polluters Pay Climate Fund Act to hold them accountable," said Representative Judy Chu.

In addition to Senator Van Hollen, the bill is cosponsored in the Senate by Senators Ed Markey (D-Mass.), Jeff Merkley (D-Ore.), Bernie Sanders (I-Vt.), Elizabeth Warren (D-Mass.), and Sheldon Whitehouse (D-R.I.).

In addition to Representatives Nadler and Chu, the bill is cosponsored in the House by Representatives Becca Balint (D-Vt.), Andre Carson (D-Ind.), Dan Goldman (D-N.Y.), Raúl Grijalva (D-Ariz.), Eleanor Holmes Norton (D-D.C.), Jared Huffman (D-Calif.), Jonathan Jackson (D-Ill.), Hank Johnson (D-Ga.), Summer Lee (D-Pa.), Alexandria Ocasio-Cortez (D-N.Y.), Delia Ramirez (D-Ill.), Jamie Raskin (D-Md.), Jan Schakowsky (D-Ill.), Rashida Tlaib (D-Mich.), and Bonnie Watson Coleman (D-N.J.).

The Polluters Pay Climate Fund Act is endorsed by a wide range of conservation and environmental justice organizations, including Chesapeake Climate Action Network, Sierra Club, League of Conservation Voters, Earthjustice, Center for Biological Diversity, Food & Water Watch, Climate Accountability Institute, Union of Concerned Scientists, Working Families Party, The Rachel Carson Council, Greenpeace USA, CASA, Climate Action California, Vermont Public Interest Research Group, Evergreen Action, Oxfam America, Sunrise Movement, Surfrider Foundation, Clean Water Action, Action for the Climate Emergency, Oil and Gas Action Network, South Seattle Climate Action Network, 350 Conejo / San Fernando Valley, Human Impact Partners, Sustainable Mill Valley, 350Brooklyn, Climate Hawks Vote, Gen-Z for Change, Physicians for Social Responsibility Maine, Better Future Project, Third Act Upstate New York, Third Act Virginia, Third Act Maryland, Third Act, 350 Mass, Physicians for Social Responsibility, Waterkeeper Alliance, San Francisco Bay Physicians for Social Responsibility, Texas Physicians for Social Responsibility, Elders Climate Action (ECA) Northern California (NorCal) Chapter, Elders Climate Action (ECA) Southern California (SoCal) Chapter, 350 Bay Area Action, Concerned Health Professionals of PA, NC League of Conservation Voters, MoveOn, 350 Seattle, New Jersey League of Conservation Voters, Environmental Advocates NY, California Environmental Voters, Bold Alliance, Maine Conservation Voters, 198 methods, Women's Earth and Climate Action Network, NY Public Interest Research Group, Zero Hour, Vermont Natural Resources Council, 350.org, Voices for Progress, New York Communities for Change, Ohio Environmental Council Action Fund (OEC Action Fund), Center for Popular Democracy / CPDAction, Climate Policy Equity Center, and Vessel Project of Louisiana.

Background on the Polluters Pay Climate Fund Act

For over 60 years, fossil fuel companies have been fully aware of - and profited from - their industry's contributions to climate change, and despite this knowledge took little to no action to remediate the negative environmental and human health impacts of their business practices. Now, climate change related extreme weather events cost the United States at least $150 billion each year and these impacts are disproportionately borne by underserved and overburdened communities.

The concept of Polluters Pay is simple: those most responsible for creating the climate crisis should pay the most to address its harmful impacts. Modeled after the Superfund law, the Polluters Pay Climate Fund Act would allow the U.S. to generate significant revenue - $1 trillion - to address our climate challenges by turning to the industry that caused them. The legislation requires the largest polluters to pay into a Polluters Pay Fund, contributing based on a proportion of the companies' prior emissions.

Using peer-reviewed "carbon attribution" research, it is possible to definitively attribute carbon in the atmosphere to specific companies. The Polluters Pay Climate Fund Act would assess companies based on their global carbon dioxide emissions and authorizes the Treasury Department to charge the largest polluters in proportion to their past carbon emissions, in excess of 1 billion metric tons - resulting in the top polluters contributing $100 billion each year for 10 years to the Fund. The legislation applies to any fossil fuel extractor or refiner that is U.S.-based, or is a foreign company engaged in trade or business in the U.S., and is responsible for generating over 1 billion tons of carbon dioxide emissions from 2000-2022.

The fund would be used to combat the impacts of climate change in a variety of ways, such as rebuilding and upgrading infrastructure, cleaning up the impacts of pollution in frontline communities, and providing climate-related disaster assistance. Forty percent of the fund would be set aside for investments that benefit environmental justice communities.

No Impact on Energy Costs: The Polluters Pay Climate Fund Act would not raise costs for consumers. The market price of gasoline is determined by supply and demand. The fund would not affect the demand for gasoline, which is based on consumer preferences and other factors like the overall state of the economy. The fund would also not affect the supply of gasoline. The tax assessment is based on past, not current, activity, so it does not impact the ongoing costs of production. It is charged only to those with the highest past production, leaving some companies that are not subject to the assessment to act as price competitors and rivals for market share. Collusion by covered companies to raise prices would be illegal under antitrust laws.

No Impact on State and Local Climate Lawsuits and Climate Superfunds: The Polluters Pay Climate Fund Act is nota substitute for or designed to preempt local- or state-level climate lawsuits seeking to hold the fossil fuel industry accountable for deception about the causes and consequences of climate change. Nor does it preempt state-level climate superfund laws aimed at recouping damages from climate change.

The full text of the bill is available here. A two-pager on the bill is available here.

"Big Oil and Gas have gotten away with their get-rich-quick schemes for far too long," said Senator Markey. "They've pocketed billions in profits, while emitting billions of tons of carbon and spewing toxic pollutants, harming communities that are left to fend for themselves. The Polluters Pay Climate Fund Act would hold these big fossil fuel companies accountable for the disasters and destruction they've waged on frontline communities and working families, and put money into redressing those harms. They've been polluting and plundering; now it's time for them to pay their fair share for disaster relief and rebuilding."

"Fossil fuel companies are fanning the flames of climate chaos which is fueling extreme weather events including wildfires and dangerous heat waves. It is outrageous that these corporate polluters are avoiding responsibility for the harm they cause to the lives and livelihoods of millions of Americans," said Senator Merkley. "Congress must put the health of our families, our climate, and our economy above the wish lists of fossil fuel executives. The fossil fuel industry must pay its fair share for the harms caused by climate chaos."

"For more than 50 years, the fossil fuel industry has knowingly destroyed our planet for their short-term profits," said Senator Sanders. "Thanks to its central role in driving the climate crisis, the United States is suffering catastrophic damage. The costs of repairing our environment and transitioning away from fossil fuels must be borne by the parties responsible for driving climate change. The polluters must pay."

"For decades, oil and gas giants made big bucks off polluting our climate, putting our communities and financial system in grave danger. The Polluters Pay Climate Fund Act will hold corporations accountable while accelerating transformative investments in our clean energy future," said Senator Warren.

"This bill is exactly what is needed to make sure average citizens are not the ones paying the extraordinary costs associated with adapting and recovering from the escalating impacts of the climate crisis," said Brittany Baker, Maryland Director for the Chesapeake Climate Action Network. "We appreciate Senator Van Hollen's leadership on this concept and are thrilled that this bill does not preempt state action."

"The introduction of the Polluters Pay Climate Fund Act by Senator Van Hollen and Congressman Nadler is a game-changing moment in our fight for climate justice! We're seeing incredible momentum building across the nation, with strong public support for holding big polluters accountable. As communities grapple with the mounting costs of climate disasters, it's high time we make fossil fuel companies pay their fair share. This bill isn't just about accountability - it's about investing in a resilient, clean energy future that works for all of us. The groundswell of support for making polluters pay shows that Americans are ready for bold action on climate. This legislation is a crucial step forward in ensuring that those who profited from pollution bear the costs of addressing the climate crisis they helped create," saidCassidy DiPaola, Communications Director at Fossil Free Media and Spokesperson for the Make Polluters Pay campaign.

"Big Polluters know fossil fuels significantly worsen the climate crisis, and yet they have continued to pollute our communities, the air we breathe, and the water we drink across the country for decades. We applaud Senator Van Hollen and Congressman Nadler for leading on the Polluters Pay Climate Fund Act to hold Big Polluters accountable and protect communities who are experiencing the devastating impacts of fossil-fueled extreme weather and environmental injustice, especially communities of color and communities with low-wealth that have been most harmed by fossil fuel development," said Sara Chieffo, Vice President of Government Affairs, League of Conservation Voters.

"Communities are suffering from the consequences of the actions of Big Oil and Gas corporate polluters, in the form of daily pollution from oil and gas as well as damage caused by worsening extreme weather driven by climate change. We can not continue to expect taxpayers to bear the biggest burden in rebuilding and repairing the damage caused by the business activities of multi-billion dollar companies," said Mahyar Sorour, Sierra Club's Director of Beyond Fossil Fuels Policy. "We are grateful for the leadership of Senator Van Hollen and Congressman Nadler in ensuring fossil fuel companies do their part to clean up the messes they have caused. We hope this is just the beginning of making polluters pay."

"We applaud the leadership of Senator Van Hollen, Representative Nadler and Representative Chu for introducing the Polluters Pay Climate Act of 2024. It is time for fossil fuel companies to pay for the damage they have done to our communities from decades of climate pollution. By directing revenue from fossil fuel companies to help communities dealing with the impacts of wildfires, floods, droughts, and other climate change driven extreme weather events, we can start to right historic harms caused by the fossil fuel industry," said Jim Walsh, Policy Director, Food & Water Watch.

"At a time that demands urgent climate policy solutions, the Rachel Carson Council applauds Senator Van Hollen, Representative Nadler, and Representative Chu for their important and timely legislation -- the Polluters Pay Climate Fund Act of 2024. Corporations responsible for exacerbating the effects of climate change in this country have gotten away for far too long with their reckless polluting. After decades of knowingly skyrocketing greenhouse gas emissions and fighting efforts to reduce them, it is time for the nation's top polluters to foot the bill for the environmental degradation and health risks they have created. We strongly urge all members of Congress to support this bill and all future efforts to create a sustainable, livable future for all Americans," said Bob Musil, PhD, MPH, President & CEO, the Rachel Carson Council.

"The fossil fuel industry has foreseen for decades that continued use of their products would cause grievous harm to the global climate, planetary biodiversity, and human civilization," said Richard Heede, Director of the Climate Accountability Institute. "This legislation is a great step toward holding fossil fuel companies accountable. Citizens, victims, and taxpayers should not alone pay for climate remedies and resilience."

Zanagee Artis, Executive Director of Zero Hour, said, "For over sixty years, the oil and gas sector has known about the threat that fossil fuels pose to life on earth. Big Oil is still fighting to entrench oil and gas in our energy system, and the youngest generations of people on earth could inherit a world devastated by catastrophic climate change as a result. The Polluters Pay Climate Fund Act of 2024 is accountability for an industry that has escaped it for far too long, and every member of Congress who wants a livable planet should fight to pass this bill."

"Major oil, gas, and coal corporations have raked in enormous profits while communities bear the brunt of the fossil fuel-driven climate crisis-including extreme heat, stronger hurricanes, extreme flooding, and more devastating wildfires. Environmental racism compounds the harm for Black, Brown, and Indigenous communities. Making the largest fossil fuel polluters fund a comprehensive and equitable federal response to climate change is one important step toward holding these companies accountable for their destructive and deadly business. Importantly, this proposal also safeguards state and local action and preserves access to justice for climate damages and deception through the courts," said Kathy Mulvey, Climate Accountability Campaign Director, Union of Concerned Scientists.

"Vermont passed a Climate Superfund law earlier this year, because lawmakers understood that the companies causing climate disruption need to help pay to clean it up," said Lauren Hierl, Executive Director of the Vermont Natural Resources Council. "Vermonters continue to be devastated by flooding and other climate disasters. We know that small, rural communities around the country can't bear these burdens alone, so we're excited to see the introduction of the federal Polluters Pay Climate Fund Act."

"The Polluters Pay Climate Fund Act of 2024 is a bold step toward finally holding Big Oil accountable for their role in fueling the climate crisis. For over 60 years, corporate polluters have knowingly damaged our planet and endangered frontline communities. Big Oil has bent over backwards to cover up the science and stall climate action to protect their profits, saddling the American people with a crisis that is costing us billions every year. This bill would begin to right those wrongs by forcing the top polluters to pay into the Polluters Pay Climate Fund, proportional to the climate pollution they're responsible for. The Fund will help address the impacts of the climate crisis and notably, will set aside 40 percent for investments that will benefit environmental justice communities. It's time to make polluters pay for the crisis they largely created-and the majority of Americans agree," said Evergreen Action's Senior Policy Lead for Energy Transition Mattea Mrkusic.

"The Polluters Pay Climate Fund Act is a common-sense solution to long-standing injustice. For decades, fossil fuel companies have knowingly contributed to the climate crisis, raking in record profits while passing the costs of their pollution onto communities, taxpayers, and future generations," said Aaron McCall, Federal Advocacy Coordinator, California Environmental Voters. "This bill shifts the burden back to where it belongs - onto the companies most responsible for the climate impacts we're witnessing. By allocating 40% of the fund to those who have been disproportionately harmed by pollution and the climate crisis, we can begin to right the wrongs of the past."

"The introduction of the Polluters Pay Climate Fund Act is an important step towards accountability for the fossil fuel companies that knowingly created the climate crisis," said Ben Edgerly Walsh, Climate & Energy Program Director at the Vermont Public Interest Research Group. "It's past time these massive corporations paid their fair share of the cost of the climate crisis - Americans simply cannot afford to shoulder that immense financial burden on their own, nor should they have to."

"Fossil fuel companies continue to invest a pittance in clean energy technologies, doubling down and cashing in on the climate chaos they deliberately created. Meanwhile millions of the world's most marginalized people around the world are paying the ultimate price with their lives, their homes, or their livelihoods," said Ashfaq Khalfan, Climate Justice Director at Oxfam America. "The biggest fossil fuel polluters will be responsible for trillions of dollars in climate harms by 2050. They have the funds to pay for the damages - just 45 energy corporations raked in on average $237 billion every year in windfall profits in 2021 and 2022. The Polluters Pay Climate Fund Act of 2024 is an important step to make sure that rich polluters pay to fix the damage. It will also prevent carbon pollution by sending a clear signal to companies that the more they pollute, the more they will pay."

"From disastrous flooding in Vermont to catastrophic wildfires in California, communities and taxpayers simply don't have the resources to rebuild and recover. Ironically the only entities on the planet with the resources to make us whole are the very companies whose predatory profit-focus caused the problem in the first place. The Polluters Pay Climate Fund Act will send critically needed resources to suffering communities, at a fair and manageable cost to the polluters. This is a solution that is both just and hopeful," said Janet Cox, CEO, Climate Action California.

"By introducing the Polluters Pay Climate Fund Act, Senator Van Hollen and Congressman Nadler are taking a bold and necessary step to ensure that the fossil fuel industry is held accountable for its decades-long contributions to the climate crisis. This legislation prioritizes justice by placing the financial burden where it belongs-on the companies that have knowingly profited from environmental destruction. We are grateful for their leadership in this critical effort to protect frontline communities and invest in a sustainable future for all," said Vanessa Fajans-Turner, Executive Director of Environmental Advocates NY.

"Fossil fuel companies have known for decades that their actions would cause global warming and plunge the world into disastrous climate impacts," said Nora Privitera, Chair of the Federal Team at 350 Bay Area Action. "This legislation is a step in the right direction by holding polluters accountable for the damage and destruction fossils fuels have caused."

"For far too long, fossil fuel CEOs have raked in record profits, while working class families pay the price. They profit while our homes burn, our bridges get washed away, and extreme heat threatens our lives," said Aru Shiney-Ajay, Executive Director of Sunrise Movement. "The Polluters Pay Climate Fund Act is an essential step to making sure that massive corporations like Exxon are footing the bill for climate impacts, not everyday people."

"It's way past time for polluters to clean up the disastrous damage they've done to our health, wildlife and the climate," said Ben Goloff, climate strategist at the Center for Biological Diversity Action Fund. "Enough of their raking in record profits at the public's expense. It's just basic fairness to hold polluters, not taxpayers, accountable for the cleanup bill."

"Air pollution from the fossil fuel industry has caused injury and disease in many people. And the greatest threat, the release of greenhouse gasses, is causing environmental damage and public health concerns around the world," said Barbara Brandom, MD (retired), Steering Committee Member for the Concerned Health Professionals of PA. "People who had nothing to do with the sources of this pollution and subsequent environmental threats should not suffer more. The polluters must pay reparations to foster resilience to the damages caused by climate change."

"While fossil fuel companies continue to reap billions of dollars in profit from pumping their fuel and plastics into our national economy, they also continue to pay nothing for the damage they sow upon our communities," said Michael Richardson, Upstate New York Co-facilitator at Third Act. "The science is clear: the production and burning of fossil fuel is the primary cause of climate disruption. A reckoning of this inequity is long overdue. Polluters must no longer be allowed to make exorbitant profits by not paying for the destructive consequences."

Public link

Please use the above public link if you want to share this noodl on another website.