A recent op-ed published on BINJE by the New Jersey Business & Industry Association (NJBIA) and the State Chamber of Commerce raises concerns about proposed climate Superfund legislation in New Jersey. The bills, S-3545 and A-4696, are scheduled for a Senate committee vote on January 8, shortly before the current legislative session ends.
Ray Cantor, NJBIA Deputy Chief Government Affairs Officer, and Michael Egenton, Executive Vice President of Government Relations for the New Jersey Chamber of Commerce, wrote: “The state’s business community adamantly believes the Climate Superfund Act is bad public policy and pushing it through because the clock is ticking in what will likely be waning few minutes of the session makes it worse.”
The proposed legislation would require oil and gas companies to pay significant retroactive fees for fuel produced legally over the past three decades. Cantor and Egenton argue that this approach sets a precedent by financially targeting industries for activities that were lawful at the time.
An analysis from the U.S. Chamber of Commerce estimates that these costs could total $40 billion. This could mean an increase of more than $9,000 per household due to higher transportation, energy, and consumer prices.
“At a time when affordability is the primary issue in the state, legislators should be doing all they can to reduce our bills, not potentially raise them,” Cantor and Egenton said.
They also raised legal concerns about the bill’s constitutionality. They pointed out that similar laws in Vermont and New York are currently facing constitutional challenges from the U.S. Department of Justice.
“Policymakers concerned with the pace of climate change should shift their attention toward prospective remedies rather than pursuing retroactive measures that are likely to face protracted legal challenges,” Cantor and Egenton said.
