The New Jersey Business & Industry Association (NJBIA) has voiced strong opposition to Senate Bill No. 3545, known as the “Climate Superfund Act.” In testimony submitted to a legislative committee, the association argued that the bill would function as a new energy and utility tax on consumers during a period when energy affordability is a key concern for state residents.
NJBIA outlined several reasons for its opposition, including anticipated negative impacts on consumers, retroactive assessments on companies, potential effects on jobs and the economy, and concerns over constitutionality. The association also claimed that the legislation does not address climate change or promote decarbonization.
The NJBIA said: “There are numerous reasons to oppose this legislation, which essentially imposes a new energy and utility tax on consumers at a time when affordability, especially for energy pricing, is the dominant concern of our state’s residents.”
According to NJBIA’s testimony, advocates claim costs imposed on fossil fuel companies will not be passed on to consumers. However, NJBIA disputes this: “This claim is patently false. While we do not know how much the State Treasurer may seek to assess under this bill, one of the prime sponsors believes the amount will be $40 billion. Advocates have recently claimed the amount is $50 billion.” The association referenced an analysis from the U.S. Chamber of Commerce Institute for Legal Reform estimating that households could see total additional costs exceeding $9,000 over nine years due to increased transportation and utility expenses.
The group further argued that it is unfair to impose retroactive liability on companies providing products deemed necessary for society and legal at their time of sale. They pointed out that only companies involved in refining or extracting fossil fuels would face charges under this law—not businesses or consumers who used these products.
NJBIA highlighted potential risks to employment in New Jersey: “New Jersey is home to only two refineries… These two New Jersey refineries alone contribute $8.4 billion to the national economy, pay $1.4 billion in state and local taxes, pay $4 billion in labor income, and support 35,700 jobs in the state.” The association warned that passage of this bill could threaten those jobs.
On broader impacts, NJBIA stated: “Modern society is run primarily on fossil fuels… Over the last century fossil fuel energy has resulted in more than a doubling of life expectancy and an extraordinary decrease in extreme poverty and hunger.” They also asserted there are currently no affordable substitutes available at scale.
Constitutional concerns were raised by NJBIA regarding retroactive liability: “If enacted, this law would likely be struck down on constitutional grounds… Passing this law will be a waste of time and money.”
The association warned about possible consequences for New Jersey’s business environment: “Passage of this legislation would send a message to the business community that you do business in New Jersey at your own risk.”
NJBIA also questioned whether such state-level policies would have any meaningful impact on global emissions or climate change outcomes given New Jersey’s small share of overall emissions.
Regarding scientific support for damages cited by proponents of Senate Bill No. 3545—estimated between $40–$50 billion—the association said mainstream science does not show compensable harm specific to New Jersey attributable directly to climate change impacts from fossil fuels.
Finally, NJBIA objected that linking liability requirements with being subject to New Jersey sales tax could exempt foreign corporations from responsibility while placing burdens solely on domestic companies.
Founded in 1910,the New Jersey Business & Industry Association serves as one of America’s largest statewide employer associations representing private-sector employers across various industries throughout New Jersey.Michele Siekerka leads NJBIA as president and chief executive officer.The organization provides advocacy services along with information resources designed to advance members’ financial success.It maintains partnerships among businesses,government entities,and academic institutions.
