New Jersey lawmakers have recently rebranded the Climate Superfund Act as the
“Polluters Pay to Make New Jersey More Affordable Act.”
Unfortunately, changing the title does not change the reality.
Despite its new name, this legislation will make life more expensive for the very
residents it claims to help.
At a time when New Jersey families are already struggling with some of the highest
costs of living in the nation, policymakers should be focused on reducing costs, not
creating new policies that could drive them higher.
The legislation would impose billions of dollars in retroactive fees on energy producers
for legally providing a product that everyone uses.
Regardless of how those costs are assessed, basic economics suggests that significant
new financial burdens imposed on major industries rarely remain isolated. Instead, they
often work their way through the economy, increasing costs for consumers, employers,
and communities.
Energy touches virtually every aspect of daily life. Higher costs imposed on energy
producers will translate into higher fuel prices, increased transportation costs, rising
utility bills, and greater operating expenses for businesses.
Those costs ultimately affect the price of groceries, consumer goods, housing, and
countless other necessities that New Jersey residents rely on every day.
This is particularly concerning in a state already facing significant affordability
challenges.
According to the New Jersey Business & Industry Association’s 2026 Regional Business Climate Analysis, New Jersey ranks last in the region in both cost competitiveness and
business taxes for the eighth consecutive year.
The report notes that New Jersey maintains the highest corporate tax rate in the region
and the highest property tax burden as a percentage of personal income.
For many residents, affordability is not an abstract policy discussion. Families are
making difficult choices about housing, transportation, childcare, and everyday
expenses. Small businesses continue to face rising operating costs and economic uncertainty. Adding new costs into the economy should be approached with extreme
caution.
The legislation also raises broader concerns about New Jersey’s business climate.
Employers make investment decisions based on predictability and stability. Policies that
create significant retroactive financial liabilities, while working within the law, contribute
to uncertainty and raise concerns about the long-term cost of doing business in the
state.
New Jersey has already witnessed several high-profile corporate departures in recent
years. While many factors influence business location decisions, policymakers should
be mindful of the cumulative impact that additional costs and regulatory uncertainty can
have on economic growth, job creation, and investment.
Moreover, there are legitimate questions about whether the legislation will achieve its
stated objectives.
Unlike forward-looking policies that encourage innovation, support cleaner technologies,
or incentivize emissions reductions, this proposal focuses on assigning liability for legal
activities that occurred decades ago and, in fact, still occur out of necessity.
It is difficult to see how retroactive assessments will directly lower emissions or
meaningfully change future behavior.
The legal uncertainty surrounding similar laws in other states further complicates the
picture. Climate Superfund laws enacted in New York and Vermont are already facing
substantial legal challenges, raising constitutional and procedural questions that may
take years to resolve.
Given the significant economic implications, the potential impact on affordability, and the
unresolved legal questions, New Jersey lawmakers should proceed wisely.
At a minimum, legislation of this magnitude should not be rushed through as part of a
budget process. It deserves thorough review, public debate, and careful consideration
of its potential consequences for consumers and businesses alike.
If affordability is truly the goal, New Jersey should focus on policies that lower costs for
residents, encourage investment, strengthen economic growth, and support practical
environmental solutions. This legislation does the opposite.
Tony Bawidamann is Chair of NEW JOBS, New Jersey’s largest and most influential
business political action committee.
