A proposed climate bill in New Jersey has raised concerns among business leaders about its potential impact on energy costs and the state’s economy. Ray Cantor of the New Jersey Business & Industry Association (NJBIA) addressed these issues in a recent op-ed published by NJ.com.
Cantor described the legislation, known as the Climate Superfund Act, as a measure that could significantly increase expenses for both residents and businesses. He argued that the bill would impose retroactive penalties totaling tens of billions of dollars on companies that have legally extracted and refined fossil fuels.
Cantor referred to the act as the “Climate Money Grab Act” and questioned its fairness. “As a legislative effort, we find it tone deaf to the deep energy affordability challenges we face in New Jersey,” Cantor wrote.
The bill has already passed environment committee votes and is expected to be discussed further during the Legislature’s lame duck session after Election Day. According to Cantor, if a $40 billion estimate mentioned by one legislator were applied, it could mean an additional $9,000 in gasoline and gas utility costs for consumers over nine years. This projection is based on an analysis from the U.S. Chamber of Commerce Institute of Legal Reform.
Cantor also expressed skepticism about claims that imposing large financial assessments on energy companies would not lead to higher prices for consumers. “Amazingly, supporters of this legislation appear to have convinced themselves that illegally socking energy companies with billions of dollars in unfounded assessments, not to mention the millions they’ll potentially spend to fight the unfairness in the courts, will somehow not raise gas or energy prices in the state,” he wrote.
He added: “Well, at least that’s what they’re saying publicly to garner support.”
Cantor concluded by warning about future consequences if such measures are enacted: “But here’s the reality: Businesses don’t just swallow billions of dollars in added costs, particularly ones they have no control over. There are margins they expect to make to keep people employed and consequences when they’re not met. This will prove even truer if companies know that this assessment can be imposed against them again in the future.”
The full op-ed can be read at NJ.com.
