The New Jersey Business Coalition, with backing from over 100 signatories, has called on lawmakers to reject the proposed Climate Superfund Act. The legislation, identified as Bill S-3545 and sponsored by Senators Smith (D-17) and McKeon (D-27), is scheduled for a vote in the Senate Budget and Appropriations Committee.
If enacted, the bill would impose retroactive penalties amounting to billions of dollars on companies that have legally supplied fossil fuels in New Jersey. According to the coalition, this could establish a precedent allowing any company in the state to face significant financial penalties even if they complied with existing laws.
The coalition’s letter stated: “Given the costs being imposed on consumers during an affordability crisis, the harmful impact of this legislation on two major job creators in this state, the unfairness of retroactive liability, and the negative message it sends to the business community, we ask that you not support this legislation.” The group also invited further discussion: “We welcome an opportunity to discuss this with you in greater detail.”
A U.S. Chamber of Commerce analysis estimates that if a $40 billion figure cited by one sponsor is applied, New Jersey households could see their annual fuel costs increase by $1,000 over nine years. Addressing claims about cost impacts, the coalition wrote: “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.”
The coalition highlighted risks to New Jersey’s two remaining refineries—the Phillips 66 plant in Linden and Paulsboro Refining Company—stating: “These two New Jersey refineries alone contribute $8.4 billion to the national economy, pay $1.4 billion in state and local taxes, pay $4 billion in labor income, and support 35,700 jobs in the state.” The statement continued: “Passage of this bill would put those jobs in jeopardy and harm the state and regional economy. Predicting that this bill would harm our two remaining refineries is not fear mongering. The East Coast used to be home to about 14 refineries – we now have four left, with two in New Jersey. The threat to these refineries from this bill is real.”
The coalition argued that while sending a negative signal to businesses operating within legal parameters, “this legislation is also clearly unconstitutional as many courts in other states have found that the issues of how to address climate change need to be addressed at national and international levels, not by an individual state.” They noted that New Jersey accounts for just 1.7% of U.S greenhouse gas emissions and only 0.3% worldwide but asserted that “this bill seeks to hold companies that do business in New Jersey liable for a company’s worldwide activities.”
Residents are being encouraged by organizations such as the New Jersey Business & Industry Association (NJBIA) to contact legislators through njbia.org/letspowerprogress.
The NJBIA serves as one of the largest statewide employer associations representing private-sector employers across various sectors including manufacturing, retail, wholesale trade, contracting services and more (official website). Established originally as the New Jersey Manufacturers Association in February 1910 (official website), NJBIA has broadened its membership over time (official website). Its mission includes advancing competitive excellence among its members while offering essential information and services (official website). Michele Siekerka currently serves as president and chief executive officer (official website).
NJBIA facilitates partnerships between businesses, government agencies and academic institutions while advocating for policies aimed at supporting business prosperity throughout New Jersey (official website; official website).
