Legislation that would hold fossil fuel companies financially responsible for past greenhouse gas emissions is set to be considered by the New Jersey Senate Budget and Appropriations Committee on January 8, just days before the current legislative session ends on January 13.
The bill, S-3545/A-4696, has drawn criticism from business groups including the New Jersey Business & Industry Association (NJBIA). The association argues that such a law would negatively affect major employers in the state as well as their employees and consumers.
“As we have repeatedly stated, this bill will, without question, raise our prices at the pump and cost us more to heat our homes during an affordability crisis,” said NJBIA Deputy Chief Government Affairs Officer Ray Cantor in a statement following the announcement of the committee hearing.
“It is likely unconstitutional in retroactively assessing tens of billions of dollars to companies providing a legal product essential to our survival and prosperity. And it will do nothing to address climate change,” Cantor added.
Currently, only Vermont and New York have enacted similar Climate Superfund laws. However, these laws have not been implemented due to ongoing legal challenges from several parties including the U.S. Department of Justice (DOJ). The DOJ is seeking to invalidate these state laws on grounds that they conflict with federal statutes and constitutional clauses, and could interfere with national energy policy.
Cantor noted that other states have avoided pursuing such legislation because of potential litigation costs. NJBIA has continued its efforts to inform lawmakers about what it sees as negative consequences for New Jersey’s businesses and residents.
“We are pleased the Legislature has been willing to understand our deep concerns about this bill and is indeed listening and asking the right questions. They know this is not something that should be determined with a few days remaining in a lame duck session,” Cantor said.
