Business Community Calls for DNR on Climate Superfund Plan

Report to Members

By Michele N. Siekerka, NJBIA President and CEO On Mar 27, 2026

The controversial Climate Superfund Act that died when the 2024-2025 legislative session ended was an unfair, and likely unconstitutional cash grab – a bad policy trifecta that would have hurt businesses, workers, and consumers. It should not be resuscitated.

The bill would have retroactively penalized New Jersey fossil fuel companies $50 billion in assessments for their relatively minor role in global carbon emissions. The legislation cleared two committees after contentious public hearings, but was not considered by the full Legislature before its two-year term ended Jan. 12.

Now, the bill is back. But just because this misguided proposal has been reintroduced in the new term doesn’t mean that it should be revisited by lawmakers. 

Here’s why. First, the bill would establish a dangerous precedent that sends a chilling, anti-business message that New Jersey is not the place to locate or expand your company. It would tell businesses that if they follow the law, comply with environmental permits, and produce a legal product that consumers want and the nation requires for security and survival, the state will turn around and issue billions of dollars in retroactive fines against them.

Secondly, it hurts consumers. Billions of dollars in likely unconstitutional assessments against fossil fuel companies – not to mention the millions of dollars in legal fees they will spend fighting this in the courts – will raise gasoline and energy prices in New Jersey.

In a state where affordability issues dominated the last election, and the new governor has issued executive orders to address soaring utility rates, it is unfathomable lawmakers might revisit a bill that exacerbates the affordability issue their constituents are clamoring about.

Lastly, the legislation would hurt New Jersey workers. Only two refineries are left in New Jersey, and although last-minute amendments in January exempted them from being directly assessed, they still have indirect financial and legal exposure tied to parent-company activities. The Phillips 66 Bayway refinery in Linden and the Paulsboro Refining Co. in Paulsboro, which support tens of thousands of direct and indirect New Jersey jobs, remain impacted by the ripple financial effects even with a site-specific refinery exemption from a direct assessment.

The US Energy Information Administration says New Jersey contributes just 1.7% of the nation’s greenhouse gas emissions and only 0.3% of worldwide emissions. This bill improperly assigns responsibility for worldwide emissions to a handful of New Jersey businesses. It was wrong in the last legislative session and remains wrong now.

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