The New Jersey Business & Industry Association (NJBIA), which represents private-sector employers across the state, has voiced strong opposition to Senate Bill No. 3545, known as the “Climate Superfund Act.” The association submitted testimony urging lawmakers to reject the bill, arguing that it would function as a new energy and utility tax on consumers during a period when affordability is a major concern in New Jersey.
According to NJBIA, there are several reasons for opposing the legislation. These include negative impacts on consumers, unfair retroactive assessments against companies, potential job losses, and harm to the economy. The association also claims that the bill disregards the necessity of fossil fuels and raises constitutional issues.
The NJBIA stated: “There are numerous reasons to oppose this legislation, which essentially imposes a new energy and utility tax on consumers at a time when affordability, especially for energy pricing, is the dominant concern of our state’s residents.”
The association further argues that while resiliency is important for New Jersey as a coastal state prone to storms, this bill does not address those concerns. Instead, they claim it aims to damage an essential industry by making fossil fuel refining and extraction less attractive.
“However, this bill is not about resiliency. It is about trying 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,” according to NJBIA’s testimony.
The group warns that if passed, the bill could lead to higher gasoline prices and increased utility bills for consumers. They cite estimates from the U.S. Chamber of Commerce’s Institute for Legal Reform suggesting that households could see costs rise by over $1,000 annually over nine years due to increased transportation and utility expenses.
NJBIA also points out that only two refineries remain in New Jersey—the Phillips 66 plant in Linden and Paulsboro Refining Company in Paulsboro—which together contribute billions of dollars to the economy and support thousands of jobs. A recent study from NJIT details their economic significance (https://njbia.org/wp-content/uploads/2025/11/2025-Bayway-Project-FINAL.pdf).
The testimony states: “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.”
Additionally, NJBIA argues that modern society relies heavily on fossil fuels for transportation, heating homes, running factories, and office buildings. They claim there are currently no adequate or affordable substitutes available.
On legal grounds, NJBIA contends: “If enacted, this law would likely be struck down on constitutional grounds. Not only does it seek to impose retroactive liability for previously legal actions, but courts have consistently found…that the issues presented are ones of national and even international jurisdiction.”
The association believes passing such legislation sends a negative message to businesses operating in New Jersey by introducing uncertainty around retroactive liability.
Regarding climate change impacts addressed by the proposed law, NJBIA notes: “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 taxpayers without any benefit to the environment.”
They also reference findings from the Intergovernmental Panel on Climate Change (IPCC) stating there is limited evidence linking local damages directly to greenhouse gas emissions.
Finally, NJBIA criticizes provisions in the bill they say favor foreign corporations over domestic companies by tying liability requirements to entities subject to New Jersey sales tax.
Founded in 1910 with headquarters in Trenton according to its official website, NJBIA describes itself as serving as one of America’s largest statewide employer associations representing various sectors and advancing competitive excellence. The organization offers advocacy services and practical information aimed at supporting business prosperity while facilitating partnerships among businesses, government agencies and academic institutions. Michele Siekerka serves as president and chief executive officer of NJBIA.