The U.S. Chamber of Commerce and the American Petroleum Institute sued the state of Vermont in federal court last week over its Climate Superfund Act. The plaintiffs argue that the law violates both the U.

The new legislation requires oil and gas companies to pay for some of the damages caused by climate change. But legal experts say it's expected to face legal challenges.

New York Gov. Kathy Hochul signed the Climate Change Superfund Act, requiring fossil fuel companies to contribute $3 billion annually for 25 years to cover climate-related damages. While praised by advocates for shifting costs from taxpayers to polluters, the law still awaits chapter amendments and is expected to face legal challenges.

The lawsuit asks a state court to prevent Vermont from enforcing the law, which was passed last year.

The Climate Change Superfund Act puts a fine on the largest contributors to greenhouse gas emissions between 2000 and 2018, specifically those responsible for more than 1 billion tons of global greenhouse gas emissions. The collected money will be put into a special fund to pay for climate change resilience measures starting in 2028.

Business groups say the law seeking payment from oil and gas companies is unconstitutional and would dictate energy policy for the rest of the country.