The Climate Superfund Act is unconstitutional, will unquestionably add costs to New Jersey residents while in the throes of an affordability crisis, and seeks to end an industry that is vital to the state’s overall economy.

These are the central themes in NJBIA's written testimony to the Assembly Environment and Solid Waste Committee that is scheduled today to vote on bill A-3735 (Collazos-Gill, D-27; Haider, D-37; Murphy, D-7; Venezia, D-34).

The bill seeks to retroactively penalize New Jersey fossil fuel companies $50 billion for legally providing an essential product used by all New Jerseyans, including supporters of the bill, to thrive and survive.

“This bill will add to the affordability crisis in New Jersey,” said NJBIA Deputy Chief Government Affairs Officer Ray Cantor, who will be one of numerous voices verbally testifying in opposition today.

“Advocates have made the fanciful claim that the costs imposed on fossil fuel companies will not be passed on to consumers. This claim is patently false.  By imposing a multi-billion annual energy and utility tax against providers of gasoline and other fossil fuel products, consumers WILL pay the cost.”

“There will be higher prices at the pump for gasoline and even higher utility bills. The costs of consumer goods will also rise as the cost to deliver those goods will rise as fuel prices increase,” Cantor said.

In his testimony, Cantor uses an analysis of the U.S. Chamber of Commerce’s Institute for Legal Reform, which shows the bill will cost each New Jersey household an additional $13,735 for transportation,  utilities and other cost impacts over 20 years. 

“The arguments that these costs will not be passed on are flawed,” Cantor said. “They do not account for the fact that 14 states, and perhaps more, are considering similar legislation.

“They ignore the fact that it is likely that these assessments will be imposed again in the future, and they equate the economics of worldwide prices for a barrel of oil to the cost at the pump.

“It is obvious to see that state policies impact the price at the pump as is easily seen by the different prices in each state, and even within a state - and by the fact that California policies are to blame for their nation highest price for a gallon of gasoline,” Cantor said.

Cantor said the Climate Superfund Act is not about climate resiliency, as supporters claim, but is effectively another effort from advocates “to inflict enough economic harm on a vital industry so that investments will no longer be made, and fossil fuel refining and extraction no longer remains an attractive business model.”

“Advocates first tried to get laws passed to ban the use of fossil fuels and failed. They next tried to bring lawsuits based on the same premises of this legislation, including a case brought by the New Jersey Attorney General, and they have also been failing. Now they are trying to use legislation in the guise of compensating for damages that do not exist to bankrupt legitimate and vital businesses,” Cantor said.

Other points detailed in Cantor’s written testimony regarding the impact of the bill include:

• Negative impacts on consumers;

• Unfairness of imposing a retroactive assessment;

• The impacts on jobs and the economy;

• It ignores the necessity and benefits of fossil fuels;

• It is unconstitutional;

• It sends the wrong message to the business community;

• Pension funds and the middle class are large owners of fossil fuel company stock;

• It does nothing to address climate change or to promote decarbonization

• It is not supported by mainstream science.

To see Cantor’s full written testimony, click here.