The Climate Superfund Act (S3545) was advanced by the New Jersey Senate Budget and Appropriations Committee, drawing praise and opposition.
The Act would hold big oil and gas companies accountable for damages caused by climate change, funding $50 billion for infrastructure investments over the next 20 years at no cost to taxpayers. The bill has already cleared the Environment Committee in both chambers.
The investments would include infrastructure improvements, flood prevention, disaster response and climate resilience projects across the state.
New York and Vermont have already passed similar legislation, with New York’s set to raise $75 billion.
“The Climate Superfund Act will save taxpayers and ratepayers real money, billions, for years to come,” said prime Senate sponsor John McKeon (D-Essex).
“It’s estimated to create 18,962 jobs. And it protects our towns and cities from the damage caused by increasingly severe and frequent extreme weather that Big Oil, Gas and Coal have profited from, while real people and over a million New Jersey businesses keep paying the costs.
“It’s past time multibillionaire, multinational corporations that profit from New Jersey pay their fair share. To be serious about affordability, we have no choice other than voting for (the) Climate Superfund within the month.”
The bill would require the companies most responsible for climate change to pay for the damages. The bill only applies to companies responsible for more than 1 billion tons of global greenhouse gas emissions between 1995 and 2024.
Fewer than 100 corporations worldwide would face assessments, with payments proportional to their pollution.
“Folks in my district in Central Jersey are paying the costs of the climate crisis, especially increasingly severe flooding, that fossil fuel interests have profited from,” said co-sponsor Senator Andrew Zwicker (D-Middlesex).
“They’ve known for decades that burning fossil fuels would cause significant harm, and they purposefully misled us to protect their bottom line. Isn’t it only right they pay their fair share so we can be better protected?”
“New Jersey communities are facing a crisis of affordability made worse by climate-destroying fossil fuel pollution,” said co-sponsor Senator Teresa Ruiz (D-Essex).
“This is especially pronounced in New Jersey’s environmental justice communities like the 29th legislative district. That’s why I am proud to support S3545 to deliver $50 billion to New Jersey communities for climate-adaptation projects with at least 51% of that earmarked for overburdened communities.”
However, NJBIA Deputy Chief Government Affairs Officer Ray Cantor issued a statement opposing the bill.
“It is disappointing that this bill was released given the enormous impact on affordability in New Jersey, while also setting a chilling precedent that a New Jersey company can be retroactively targeted for billions of dollars in penalties, even if it complied with the law,” wrote Cantor.
“However, we do appreciate the comments from the committee today, both for and against. And we are optimistic based on comments by the Chairman Sarlo that this bill will not advance in this lame duck session (Sarlo initially voted yes for the bill).
“Until then, we call upon our legislative leadership to reject this unaffordable and unfair bill and consider the severe consequences on our energy affordability and our business reputation. And we look forward to further conversations.”
In a letter with more than 100 signatories, the New Jersey Business Coalition urged lawmakers to oppose the Act:
“Given the costs being imposed on consumers during an affordability crisis, the harmful impact of this legislation on two major job creators in this state, the unfairness of retroactive liability, and the negative message it sends to the business community, we ask that you not support this legislation. We welcome an opportunity to discuss this with you in greater detail.”
The committee vote represents a major milestone for the legislation. The bill has 19 co-sponsors in the State Senate, majority support in the Assembly with 46 co-sponsors and has the backing from more than 70 municipal and county governments across the state.
Recent polling shows that more than two-thirds of New Jersey voters support the proposal.
