NJBIA Launches Campaign to Fight Climate Superfund Act

The Climate Superfund Act (S-3545/Smith/McKeon), which is slated for a vote in the Senate Budget and Appropriations Committee on Jan. 8, would set a precedent for any New Jersey company that if they comply with the law, they could still be targeted for billions of dollars in penalties.

While NJBIA has been warning of the cost impacts on consumers of the bill for months, the campaign to fight it begins in earnest today with the launch of a short video explainer at njbia.org/letspowerprogress - which describes how the bill will raise energy costs, while removing New Jersey’s energy choice.

Additionally, NJBIA Deputy Chief Government Affairs Officer Ray Cantor and New Jersey State Chamber of Commerce Executive Vice President of Government Relations Michael Egenton posted an op-ed on binje.com today, which goes into greater detail of the ills of the bill.

“While we are pleased the Legislature has been willing to understand our deep concerns about this bill, it is troubling to many in the business and energy communities that something so anti-business, anti-consumer, anti-union and anti-common sense would get a vote during a lame duck session,” Cantor said.

“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. It could result in job losses at our two remaining New Jersey refineries, both of which provide billions to our state and national economies.

“Further, the bill will do nothing at all to impact climate, and it will cost the state millions to litigate upon the merits that it is likely unconstitutional in nature.”

According to an analysis by the U.S. Chamber of Commerce’s Institute for Legal Reform, if the full $40 billion cost (estimated by the bill sponsor) were imposed, it would ultimately translate to an additional $9,186 per New Jersey household over nine years.

That includes $5,177 in higher transportation costs, $2,304 in pass-through costs from other businesses, and $1,706 in higher electric bills.

Only two states – Vermont and New York – have so-called Climate Superfund laws, but neither have been implemented since their enactment in 2024 because of legal challenges from various groups, including the U.S. Department of Justice (DOJ).

The DOJ is seeking to invalidate the laws on the grounds that they are preempted by federal statute, violate the commerce, due process and other clauses of the U.S. Constitution, and interfere with national energy policy.

Cantor said other states that had been contemplating Climate Superfund laws have not followed Vermont and New York’s lead because of the litigation costs that they would incur.

NJBIA has been working to ensure that New Jersey legislators understand the ramifications of this legislation on major employers in this state, their workers and consumers.

Cantor also noted that New Jersey contributes just 1.7% of the United States’ GHG emissions and only 0.3% of worldwide emissions.

“This bill will only impose large costs on New Jersey consumers and burden our job creators without any benefit to the environment,” Cantor said.

“Policymakers who may be concerned about climate should shift their attention toward prospective remedies rather than pursuing retroactive measures that will add to our affordability crisis, result in job loss, send a terrible anti-business message and face protracted legal challenges.”