U.S. Chamber and Oil Firms Sue Vermont Over Climate Damage Law
A small tractor works to remove water from a business as floodwaters inundate a street in Barre, Vermont, on July 12, 2023. (Photo by Charles Krupa/AP) The U.S. Chamber of Commerce, along with the American Petroleum Institute (API), has filed a federal lawsuit against Vermont. They are challenging the state’s groundbreaking law that requires fossil fuel companies to contribute financially to the damage caused by climate change over the past several decades. Oil Firms Sue Vermont Legal Battle Over Vermont’s Groundbreaking Law The lawsuit, filed Monday, seeks to block Vermont from enforcing its new law passed in 2024. This law makes Vermont the first state to hold fossil fuel companies accountable for climate-related damages. It follows devastating summer floods and other extreme weather events linked to climate change. Vermont is currently assessing the cost of climate change impacts starting from January 1, 1995. The plaintiffs argue that the law infringes upon the U.S. Constitution. They claim that the federal Clean Air Act already regulates greenhouse gases. Additionally, they assert that the state law violates commerce clauses by targeting large energy companies outside Vermont. They believe it is unrealistic to measure the specific impact of emissions from individual companies over time, given the global nature of greenhouse gas emissions. Tara Morrissey, senior vice president of the U.S. Chamber’s litigation center, criticized the law. She stated, “Vermont wants to impose massive retroactive penalties going back 30 years for lawful, out-of-state conduct that was regulated by Congress under the Clean Air Act.” Morrissey warned that the penalties would increase costs for consumers in Vermont and across the country. Vermont Defends Its Position Although the lawsuit has been filed, Vermont’s Agency of Natural Resources has not yet been formally served. Anthony Iarrapino, a Vermont-based lobbyist with the Conservation Law Foundation, defended the law. He said the lawsuit represents the fossil fuel industry’s attempt to evade accountability for the damage their products caused. “More states are following Vermont’s lead in holding Big Oil accountable for disaster recovery and cleanup costs,” Iarrapino said. The U.S. Chamber of Commerce, along with the American Petroleum Institute (API), has filed a federal lawsuit against Vermont. They are challenging the state’s groundbreaking law that requires fossil fuel companies to contribute financially to the damage caused by climate change over the past several decades. Oil Firms Sue Vermont Under Vermont’s law, the state treasurer, in consultation with the Agency of Natural Resources, will release a report by January 15, 2026. The report will assess the total costs to Vermont from greenhouse gas emissions between 1995 and 2024. It will cover impacts on public health, agriculture, natural resources, and infrastructure. The law adopts a polluter-pays approach. It targets companies involved in the extraction or refining of fossil fuels responsible for over 1 billion metric tons of greenhouse gas emissions. Funds collected from these companies will be used to improve infrastructure and climate resilience, such as upgrading stormwater drainage, retrofitting buildings, and enhancing roads and bridges. A Growing Trend Among States Vermont’s law has inspired other states, including New York. Governor Kathy Hochul recently signed a similar bill into law. The New York law requires major greenhouse gas emitters to contribute to a state fund aimed at repairing and preventing future climate damage. This trend shows a growing movement among states to hold fossil fuel companies accountable for the financial costs of climate change. For more on Vermont’s legal battle and the broader impact of state climate policies, visit JacobiJournal.com. To read further details, check out the original article from Bloomberg.
Faith-Based Fund with $24 Billion in Assets Influences Corporate Policies in America
Jim Lake (Photo by Margaret Albaugh/Bloomberg) Faith-Based Fund. Jim Lake, a devout Christian from Washington state, recently redefined his investment strategy. Guided by a financial adviser, he moved his portfolio into faith-oriented funds, including those managed by GuideStone Funds. This Texas-based firm, founded over 100 years ago, manages about $24 billion in assets and serves primarily Southern Baptist retirees. It has also gained traction among new faith-driven investors like Lake and his wife. The Rise of Faith-Based Investment Coalitions GuideStone is part of a growing coalition of conservative Christian investors. These investors are using their shareholder influence to challenge corporate practices, such as supporting Pride events or reimbursing employees for abortion-related travel. They are also confronting banks accused of closing accounts based on political or religious views. Will Lofland, who leads shareholder advocacy at GuideStone, estimates that half a trillion dollars are invested in conservative faith-based funds. This influence extends across private funds, state pension funds, and more. Key players in this coalition include Inspire Investing, the leading faith-based ETF manager, as well as Republican state treasurers and organizations like Alliance Defending Freedom. Faith-Based Fund The Growth of Faith-Based Funds While faith-driven investing has been around for decades, conservative faith-based funds are gaining momentum. This trend has been fueled by the rightward shift in U.S. politics and a growing resistance to diversity, equity, and inclusion (DEI) programs. More everyday investors are showing interest in faith-based funds. Tim Macready of Brightlight, an advisory firm, notes that assets in these funds surpassed $100 billion last year. Over three years, net inflows grew by 12%. Inspire Investing alone saw a net gain of $334 million in assets last year. GuideStone’s Advocacy and Future Plans GuideStone has expanded its role beyond managing Baptist church pensions. The firm is now actively engaging in shareholder advocacy. As progressive groups have ramped up shareholder proposals, GuideStone has voted its shares to reflect its values. In late 2023, GuideStone supported a proposal asking Microsoft to report on compensation gaps related to reproductive and gender dysphoria care. Although the proposal received only 1% of votes, Lofland stressed the importance of building a larger coalition to increase their influence. Looking ahead, GuideStone plans to focus on the issue of “debanking” in 2025. This refers to the practice of financial institutions closing customer accounts based on perceived risks related to legal or reputational concerns. GuideStone intends to press financial institutions on this issue to protect religious freedoms in the financial sector. For more in-depth analysis of faith-based investing and its impact on corporate America, visit JacobiJournal.com. Additional information on this topic can be found in the original report by Bloomberg.
Colorado Governor Proposes Privatization of State Workers’ Comp Carrier to Bolster Budget
In a strategic move to address Colorado’s budget shortfall, Governor Jared Polis has proposed privatizing Pinnacol Assurance, the state’s workers’ compensation carrier of last resort. By divesting the state’s interest in this quasi-governmental entity, Polis aims to generate additional revenue and ease fiscal pressure on Colorado’s general fund. Colorado Governor Privatization as a Financial Strategy Governor Polis’s proposal comes as Colorado faces significant budget challenges. According to a report by Colorado Politics, the plan could reduce the state’s general fund by approximately $630 million. This reduction is critical as Colorado confronts a projected budget gap of $672 million. If lawmakers allocate the mandated $350 million to a new law enforcement fund, the gap could exceed $1 billion. Privatizing Pinnacol Assurance could help the state bridge this gap. Polis believes the move will reclaim the state’s investment and redirect funds to cover pressing financial needs, as reported by the Denver Post. Historical Context and Legislative Considerations Privatizing Pinnacol Assurance is not a new idea. Over the past decade, similar proposals have surfaced, but lawmakers have not reached consensus. Current discussions indicate that legislators may require more detailed information to assess the plan’s feasibility and benefits. Pinnacol Assurance, established in 1915, provides workers’ compensation coverage to over 50,000 businesses in Colorado. However, its structure limits the company to selling policies only within the state and solely for workers’ compensation. This restriction has hindered Pinnacol’s growth and competitiveness, as noted by Colorado’s Sum & Substance publication. Future-Proofing Pinnacol Assurance Governor Polis believes that privatizing Pinnacol could allow the company to expand beyond state lines and diversify its services. This strategy could enhance Pinnacol’s financial stability and adaptability in a changing business environment. The governor’s plan includes drawing $100 million annually from Pinnacol for five years to support the transition and reform efforts. Polis emphasizes the importance of modernizing Pinnacol to better serve Colorado’s employers and employees. For more insights into Colorado’s policy changes and economic strategies, visit JacobiJournal.com. Additional details about Governor Polis’s proposal and its implications can be found in the original reporting by Colorado Politics.
Key Insights from the 2024 Bank Tax Institute: Tax Policy, Strategies, and the Election’s Impact
The 2024 Bank Tax Institute took place in Orlando during election week. Tax professionals, financial institutions, and experts gathered to discuss the future of tax policy. This year, the discussions focused on the election results, ongoing tax issues, and strategies for managing tax liabilities. This article covers the key takeaways, including the election’s impact, tax planning, and upcoming regulatory challenges. The Election’s Impact on Bank Tax Planning Much of the conference focused on the 2024 election results and the implications of the 2017 Tax Cuts and Jobs Act (TCJA). The quick election outcome shifted attention to the TCJA’s expiring provisions and their potential impact on tax planning for financial institutions. 2024 Bank Tax Institute If the TCJA is not extended, banks can expect several key changes: Though financial services transactions are not yet subject to tariffs, lobbyists continue to push against unfair targeting of banks. Many institutions argue that their already high effective tax rates make additional burdens difficult to bear. Tax Planning Strategies for Banks Tax-saving strategies were a major focus at the conference. Energy credits emerged as a key area where banks can take advantage of growing opportunities. As more energy producers come online, smaller banks gain access to tax-saving benefits. Another major topic was Bank-Owned Life Insurance. Section 1035 tax-free policy exchanges offer banks a chance to replace policies acquired under less-than-ideal market conditions. Politics, Pending Legislation, and Regulatory Changes With a business-focused administration in power, many attendees hope for reduced regulatory burdens. The current regulatory environment causes delays in mergers and acquisitions. These delays lead to higher administrative costs and the loss of valuable resources. IRS Tax Enforcement and State-Level Scrutiny A session featured Holly Paz, Deputy Commissioner of the IRS’s Large Corporation division. She discussed the agency’s enhanced enforcement efforts, fueled by additional funds from Congress. These measures will likely lead to more audits for banks in the near future. At the state and local levels, more states are ramping up their examination of banks. This growing scrutiny is adding to the tax burden for both financial institutions and individual shareholders.contributing to a higher tax burden for both financial institutions and individual shareholders. For more insights on tax policy developments, visit Jacobi Journal. You can also read the full article and learn more from the original source here. Stay tuned as we continue to monitor these changes and provide you with timely updates on tax policies that affect the banking sector.
Investigations: Leveraging Experience, Relationships, and Technological Expertise
Leveraging Experience: At NICB, we understand that while the shortest distance between two points is often a straight line, investigations into insurance crimes rarely follow such a clear path. Instead, they are filled with twists, turns, and unexpected obstacles that can derail progress. This is where our 100+ years of relationship-building experience come into play. Our deep connections with member insurance companies, law enforcement agencies, and public organizations are crucial in navigating these complexities, helping us detect, deter, and prevent insurance crimes. Leveraging Experience: Our Investigative Approach NICB’s investigations focus on multi-claim, multi-carrier efforts to address major criminal activities, working closely with both our members and law enforcement agencies nationwide. We are the only private organization in the country that takes a multi-carrier approach to combat fraud and theft. Leveraging Experience NICB Agents: A Force Multiplier in Fighting Fraud NICB agents play a pivotal role in our investigations, serving our members and collaborating with law enforcement agencies across eight regional field offices. Through our electronic claim referral process, NICB agents partner with representatives from member company claims and special investigation units, as well as law enforcement professionals, to investigate suspicious insurance claims and support the civil and criminal prosecution of vehicle theft and insurance fraud. Our investigators are also key players in numerous insurance crime task forces across the country. Investigative Assistance (IA) Group The IA Group handles phone and email inquiries from law enforcement and NICB members. With their in-depth knowledge and access to vast data resources, they provide crucial information that leads to thousands of vehicle recoveries and investigative leads each year. According to a report from https://www.nicb.org/ For more updates on legal actions and regulatory news, visit Jacobi Journal
Fraud Examiners: United in the Fight for Truth
Fraud examiners and investigative journalists share a core mission: uncovering the truth. Both professions rely on interviewing, data analysis, and research tools to gather evidence, often collaborating to expose fraud. At the heart of their work is a commitment to seeking the facts and presenting them objectively. Why the Guardian Award Matters This shared mission inspired the creation of the Guardian Award, which is given annually to a journalist who has made a significant contribution to the fight against fraud. Nominees are selected based on their efforts to expose fraud and white-collar crime or raise awareness about fraud prevention and detection. The award celebrates qualities like determination, perseverance, and an unwavering commitment to truth—values that fraud examiners also hold dear. The 2016 Guardian Award Winner: David Barboza The recipient of the 2016 Guardian Award was David Barboza, a business correspondent for The New York Times. Barboza earned recognition for his groundbreaking investigative work exposing corruption within the Chinese government. His reporting revealed billions of dollars in hidden wealth controlled by the family of then-Prime Minister Wen Jiabao, earning him the 2013 Pulitzer Prize for International Reporting. Barboza’s Investigation In a detailed cover article, Barboza recounts how his investigation began by focusing on “state capitalism” and the business dealings of China’s political elite, often called “princelings.” He gained access to corporate records and shareholder information, leading him to uncover startling evidence. His investigation linked Wen Jiabao’s family to Ping An, one of China’s largest insurance companies. Initially, he discovered hundreds of millions of dollars tied to the family. However, further investigation revealed a total of $2.7 billion, which Barboza suggests may only represent a fraction of their true wealth. A Keynote Address at the ACFE Global Fraud Conference David Barboza will deliver a keynote address and receive the Guardian Award at the 27th Annual ACFE Global Fraud Conference. This event will take place from June 12-17 in Las Vegas. According to a report from https://www.fraud-magazine.com/ For more updates on legal actions and regulatory news, visit Jacobi Journal.