The New Jersey Business Coalition, with support from over 100 organizations, has called on lawmakers to reject the Climate Superfund Act. The bill, known as S-3545 and sponsored by Senators Smith and McKeon, is scheduled for a vote in the Senate Budget and Appropriations Committee.
If enacted, the legislation would allow retroactive penalties against New Jersey companies for providing fossil fuels that have been legally sold. The coalition argues this could set a precedent where any company could face significant financial penalties even if it complied with existing laws.
In its letter to legislators, the coalition stated: “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.” The group added: “We welcome an opportunity to discuss this with you in greater detail.”
An analysis by the U.S. Chamber of Commerce estimates that households in New Jersey could see annual fuel costs rise by $1,000 over nine years if a $40 billion figure proposed by one sponsor is used. The coalition responded: “Advocates have made the fanciful claim that the costs imposed on fossil fuel companies will not be passed on to consumers. This claim is patently false.”
The coalition also highlighted potential risks to New Jersey’s remaining refineries—Phillips 66 in Linden and Paulsboro Refining Company in Paulsboro—stating: “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.” They continued: “Passage of this bill would put those jobs in jeopardy and harm the state and regional economy… The threat to these refineries from this bill is real.”
Further concerns include discouraging business investment while not addressing climate change directly. According to their statement: “It tells businesses that if you provide a legal, essential product, you could be open to enormous penalties.” They also argued: “This legislation is also clearly unconstitutional as many courts in other states have found that the issues of how to address climate change need to be addressed at the national and international levels, not by an individual state. New Jersey contributes just 1.7% of the United States’ GHG emissions and only 0.3% of worldwide emissions. Yet, this bill seeks to hold companies that do business in New Jersey liable for a company’s worldwide activities.”
The New Jersey Business & Industry Association (NJBIA), which serves as both a member organization within NJBC and as an advocate for employers across sectors such as manufacturing and services throughout New Jersey (official website), has encouraged residents to contact their legislators through its campaign at njbia.org/letspowerprogress.
NJBIA represents private-sector employers statewide (official website) and promotes collaboration between businesses, government agencies, and academic institutions while offering advocacy services (official website). Michele Siekerka currently leads NJBIA as president and CEO (official website). Founded originally as the New Jersey Manufacturers Association in 1910 (official website), NJBIA operates out of Trenton at 10 West Lafayette Street (official website).
