Climate Superfund Would Supercharge New Jersey’s Affordability Crisis

A relatively new nightmare policy that would allow government to spin a tale of phantom climate damages and impose costs on energy companies is threatening New Jersey.  

The Climate Superfund Act will skyrocket costs for families and businesses.  

This radical climate policy, also called the “Polluters Pay to Make New Jersey More Affordable Act”, is moving in the New Jersey Senate Budget and Appropriations Committee.  

The legislation “imposes liability on certain fossil fuel companies for funds needed for climate change adaptation projects; establishes programs in DEP to collect and distribute funds.” While New Jersey Democrats tout that this would give much needed assistance in the affordability crisis, this statement is the opposite of the reality.  

If passed, the Bill will look to tax companies responsible for emissions between 1995 to now. Essentially, they want to retroactively hold companies accountable for 30 years of activity, even though no such law existed at the time.  

This absurd proposal will be a damaging overreach, especially when the services provided are an integral part of the state economy. It would give government an open-ended excuse to take money from the private sector. As usual with proposals like these, New Jersey families and businesses would foot the bill as their energy costs get driven way up.  

State Senator Declan O’Scanlon (R-13) worded the situation perfectly: “Now we are going to retroactively fine them for doing something that was perfectly legal and that we all wanted. And we are the first ones to complain en masse when fuel prices go up. Soto point to them as solely the culprits here when we’re all at fault, I think is unfair.”  

Currently the compensation is estimated to be a total of $1 billion to $2 billion per year, about $40 billion over 25 years. However, these companies contribute $8.4 billion to the US economy and already pay $1.4 billion in state and local taxes and also support 35,700 jobs in New Jersey. 

The addition of these policies would raise prices at the pump and at home, further exacerbating the cost-of-living crisis in the State.  

One State New Jersey can look to as a negative example is California. Currently, the Golden State has experienced a stall in its own Climate Superfund legislation. The Bill sits idle, even with large support from Climate groups and possible money that could fix its deficit. The reason for this is that Californians have had enough climate taxes which have put a chokehold on the state. A growing concern across California is the rising cost of gas and electricity due to the State’s large taxes on fossil fuels. Currently, California sees a bill similar to New Jersey’s, too much for the people of California.  

So why would New Jersey even consider this bill? It certainly immediately undermines any claim from new Governor Mikie Sherrill that affordability is a top priority. It will hurt business and raise an already high cost of living. It would be better for New Jersey if this bill does not advance any further.