New Jersey lawmakers are advancing legislation that could increase costs for consumers at the gas pump. The Assembly Environment, Natural Resources and Solid Waste Committee is set to vote on a bill requiring fossil fuel companies to pay substantial sums for their role in climate change.
Ray Cantor, Deputy Chief Government Affairs Officer at NJBIA, criticized bill A-4696 (sponsored by Allen, D-32; Hall, D-28; Collazos-Gill, D-27), calling it unconstitutional and insensitive to affordability issues faced by New Jersey residents. "It’s one thing to push an ideological agenda to retroactively punish companies that provide a legal, necessary product that has been instrumental in our collective survival and prosperity," Cantor stated. He warned of higher costs when filling up cars or heating homes due to escalating taxes and energy expenses.
The Senate version of the Climate Superfund Act (backed by Smith, D-17; McKeon, D-27) has already passed a committee. In December, New York enacted a similar law requiring fossil fuel companies to pay $75 billion over 25 years for climate change damages. This led to lawsuits from 22 states against New York and challenges from business groups claiming the law exceeds legislative authority.
Cantor labeled these acts as "cash grab attempts" with significant legal challenges ahead. He expressed skepticism about their constitutionality: “Beyond the fact that the courts generally disfavor the retroactive application of laws...everything about modern society...are dependent on fossil fuels.”
If courts uphold such acts, Cantor predicts increased costs will be transferred to consumers. "This bill would further drive up the cost of everything," he remarked.
