NJ Democrats advance climate superfund plan to make fossil fuel companies pay
Trenton, NJ – New Jersey Democrats are pushing forward with sweeping legislation that would force fossil fuel companies to pay billions for climate damages — a move critics warn will raise costs on gas, heating, and everyday products.
The proposal, known as the Climate Superfund Act, mirrors federal legislation backed by Democratic gubernatorial candidate Mikie Sherrill. The bill would hold oil and gas giants financially liable for greenhouse gas emissions linked to floods, infrastructure damage, and other climate impacts in the Garden State.
Under the measure, companies that released at least one billion metric tons of emissions between 1995 and the bill’s effective date would be tagged as “responsible parties.”
Those firms would then be required to make compensatory payments into a state fund, overseen by the Department of Environmental Protection (DEP), that would bankroll flood protections, wetland restoration, and other resiliency projects.
Those payments will undoubtedly be passed on to the consumers, leading to an increase in heating bills for New Jerseyans.
Sherrill has endorsed the policy, saying she knows the fight against climate change will “cost an arm and a leg, but if you’re a good person, you’ll do it.”
Opponents argue that the costs will not fall solely on industry. They warn that companies will pass the tax burden onto consumers, driving up prices on gasoline, heating fuels, and all fossil fuel-based products.
The Senate Environment and Energy Committee has already advanced the bill with amendments. It would require the state treasurer to submit a comprehensive assessment of climate damages within two years of enactment, after which DEP would calculate each company’s share of liability.
Democrats are working feverishly to push the bill through the legislature in the event that Jack Ciattarelli wins the election for Governor. Ciattarelli would surely veto the bill if passed. Sherrill would be expected to sign it into law.
Phil Murphy has indicated he would support the bill if it hits his desk before his term expires.
Fossil fuel producers and their corporate affiliates would face joint liability, ensuring parent companies and subsidiaries share the financial responsibility. Funds collected would be deposited into a newly created Climate Superfund Cost Recovery Program, which would distribute grants for climate projects statewide.
The DEP would also be required to release annual progress reports beginning five years after the program is established.
No vote has yet been scheduled in the full Legislature.
New York Governor Kathy Hochul signed a similar bill in that state into law in 2024.
Key Points
- New Jersey Democrats are pushing a Climate Superfund Act to make fossil fuel companies pay for climate-related damages.
- Companies responsible for over one billion tons of emissions since 1995 would be required to make compensatory payments.
- Critics warn the costs will be passed down to consumers, driving up prices on gas, heating, and everyday products.
The battle over who should foot the bill for climate change is heating up fast in the Garden State.