The federal lawsuit filed Monday asks a state court to prevent Vermont from enforcing the law, which was passed last year. Vermont became the first state in the country to enact the law after it suffered catastrophic summer flooding and damage from other extreme weather. The state is working to estimate the cost of climate change dating back to Jan. 1, 1995.

The lawsuit argues the U.S. Constitution precludes the act and that the state law is preempted by the federal Clean Air Act. It also argues that the law violates domestic and foreign commerce clauses by discriminating “against the important interest of other states by targeting large energy companies located outside of Vermont.”