Democrats on Senate Budget Committee Call on Polluters to Pay for Climate Damages

As lawmakers negotiate next year’s budget, committee members and advocates say pass Polluters Pay Act first to fund infrastructure and lower costs without raising taxes

Newark, NJ — Several Democratic members of the New Jersey Senate Budget Committee called for the passage of the Polluters Pay to Make New Jersey More Affordable Act (S2338/A3735, McKeon/Collazos Gill) today as state lawmakers met for the final public budget hearing at the New Jersey Institute of Technology in Newark.

After testimony from advocates saying it’s only fair that polluters pay for the climate damages they caused, Senators on the committee agreed, saying the bill should pass before the state budget is finalized.

“We can’t keep asking taxpayers to cover the full cost of climate change. We need big polluters to start paying their fair share,” said Senator Renee Burgess (D-Essex), Budget Committee member and co-sponsor of the bill. “Every dollar they don’t pay is a dollar that comes out of property taxes and the state budget. With climate costs rising and families struggling to make ends meet, we need to pass the Polluters Pay to Make New Jersey Affordable Act before the budget this spring.”

The legislation would fund vital infrastructure and climate resiliency projects over the next 20 years, generating $2.5 billion annually from an estimated 82 fossil fuel corporations most responsible for climate change. The full cost of these projects are currently paid solely by residents through higher property taxes, state taxes, insurance premiums, and utility bills.

“Polluters must pay first before the budget is passed. This bill delivers real economic benefits, funding critical infrastructure projects that create jobs, strengthen our economy, and are built under strong labor standards that protect workers and communities,” said Senator Gordon Johnson (D-Bergen), Budget Committee member and bill co-sponsor.

The proposal would also benefit New Jersey’s short- and long-term financial health by reducing pressure on debt service costs. Moody’s Investors Service has found that state investments in climate resilience are “credit positive,” reducing risks associated with extreme weather events.

"Beginning with Superstorm Sandy, our state has been ravaged by the effects of climate change. Towns throughout our state are facing extreme weather events including historic flooding in Middlesex and Union Counties,” said Senator Patrick Diegnan (D-Middlesex), Budget Committee member and bill co-sponsor. “As we draft this budget, we need to ensure this legislation will provide the necessary funding to help our residents cover the cost of recovery. It is only fair that those entities that are responsible pay their fair share.”

Local officials and advocates from environmental, good governance, and community organizations also signed up to testify before the committee in support of the bill.

“For too long, New Jersey families have been footing the bill for a crisis they did not create, paying for flooding, infrastructure damage, and rising costs, while the corporations responsible pay nothing,” said Erik Cruz Morales, Director of Democracy at the League of Women Voters of New Jersey. “The Polluters Pay Act is about fairness and accountability. It ensures that the largest fossil fuel companies, those most responsible for decades of pollution, finally pay their share, instead of leaving taxpayers to carry the burden. A fair system, and a functioning democracy, means those most responsible for the harm help pay to fix it, not everyday taxpayers. In doing so, it strengthens our state budget, allowing us to invest in our communities, rather than continue cleaning up after corporate harm.”

Earlier in the day, Polluters Pay advocates joined allies in the For The Many NJ coalition outside the hearing to call for progressive revenue to fund housing, education, public health, transportation, and infrastructure in next year's budget, all areas that revenue from the Polluters Pay Act could contribute to.

Today’s actions come on the heels of a March 16th rally at the Statehouse led by the bill’s prime sponsors, Senators McKeon, Smith and Mukherji, and Assemblywomen Collazos-Gill and Haider.

The proposal has 19 co-sponsors in the Senate and 43 in the Assembly.

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Polluters Pay is a coalition of over 130 NJ labor, faith, community, environmental and justice groups including 32BJ SEIU, Clean Water Action, Climate Revolution Action Network, Communication Workers of America, Environment NJ, Empower NJ, Food and Water Watch, GreenFaith, Latino Action Network, NJEA, NJ Working Families Party, UU Faith Action and United Black Agenda.