New Jersey State Capitol by Ken Lund is licensed under CC BY SA-2.0
An economic catastrophe that could have impacted the entire country was defused in New Jersey last week.
That counts as good news in a state beset by high taxes and wasteful spending. It does not mean the fight is over for Jersey taxpayers and businesses.
The New Jersey state legislature pulled the $50 billion Climate Superfund Act (an effective $1,107 tax on every New Jerseyan) from the Senate session. Since the New Jersey Senate is likely to reconvene only in September, New Jerseyans can breathe a small sigh of relief as this threat is now on the back burner.
As we covered, this legislation creates a more hostile business climate in New Jersey. Allowing the state to use $50 billion in bonds to shake down businesses based on past emissions will only drive costs up. Coupled with regulations such as the Regional Greenhouse Gas Initiative, it is no wonder companies have been fleeing the state for more business-friendly environments.
While the New Jersey Climate Superfund Act boasts an impressive list of 62 co-sponsors across both the Assembly and Senate, this ironclad support was merely a mirage. On June 28th, the chair of the Senate Budget and Appropriations Committee, Senator Paul Sarlo, and Senator John Burzichelli joined Republican Senators Carmen Amato, Declan O’Scalon, Douglas Steinhardt, and Mike Testa in voting against moving the legislation out of committee. Senator Sarlo voiced opposition to the bill, citing supporters’ conduct and the overall process.
Even those who supported the legislation voiced reservations regarding the bill. The vice-chair of the Senate Budget and Appropriations Committee, Senator Linda Greenstein, expressed concerns about the legislation, citing opposition from the influential New Jersey Building and Construction Trades Council, a group representing more than 100 local unions and over 150,000 rank-and-file members. It is not surprising that labor unions oppose jobs leaving their state for a damaging proposal that would have minimal impact on climate change.
While the bill is not officially dead, given that it can be reintroduced in the September session, the New Jersey Climate Superfund Act has managed to generate a broad coalition of Democrats, Republicans, businesses, and labor unions who recognize that extorting energy producers for international emissions based on the whims of regulators is a recipe for economic harm. Rather than pursuing policies that invite costly litigation and discourage business, lawmakers should be focusing on creating a more affordable Garden State.
