A controversial bill that seeks to retroactively penalize New Jersey companies $50 billion for legally providing fossil fuels in the past (yes, you read that right), passed a Senate Budget and Appropriations Committee hearing on Thursday night.
But it may not go much further.
State Senate Budget Chair Paul Sarlo (D, Ridgewood) and Sen. John Burzichelli (D, Paulsoboro) both voted ‘yes’ on bill S-3545, but both took major issues with the provisions of the bill.
They also indicated they would not be voting ‘yes’ if the bill were to get a vote before the full Senate next week, when the lame duck session wraps up on Monday and Tuesday.
“Each and every one of us in this room, whether you’re an environmentalist or not, you’re relying on (fossil fuels) one way or another,” Sarlo said. “You are relying on them one way or another in your everyday life. So, just to say we’re going to turn the spigot off (on fossil fuels) is not practical or reasonable.”
The bill, formerly the Climate Superfund Act but renamed on Thursday as the ‘Polluters Pay to Make New Jersey Affordable Act’ was seeking to retroactively penalize New Jersey companies for legally providing fossil fuels.
Some said it was analogous to penalizing cigarette manufacturers retroactively.
Opponents scoffed. And they noted any such penalties likely would be paid by consumers in the form of higher prices.
Passing the bill at any point would be a political challenge. Doing it in a year in which affordability will be a buzzword could be political suicide.
Republican Sen. Declan O’Scanlon said blaming the industry is not fair.
“The fossil fuel industry is created by all of us,” O’Scanlon said. “Every single person that’s here right now, you burned fossil fuels to get here, in one form or another, even if you drove an electric car.
“Now we are to retroactively fine them for doing something that was perfectly legal and that we all wanted. And we are the first ones to complain en masse when, when fuel prices go up. So, to point them as solely the culprits here when we’re all at fault, I think is unfair.”
The business community certainly is against the idea. On Tuesday, the New Jersey Business Coalition, with more than 100 signatories, urged lawmakers to oppose the bill.
Ray Cantor, the chief deputy government affairs officer at the N.J. Business & Industry Association, said he is hopeful the bill will not go much further.
“It is disappointing that this bill was released given the enormous impact on affordability in New Jersey, while also setting a chilling precedent that a New Jersey company can be retroactively targeted for billions of dollars in penalties, even if it complied with the law,” he said.
“However, we do appreciate the comments from the committee today, both for and against. And we are optimistic based on comments by the Chairman Sarlo that this bill will not advance in this lame duck session.
“Until then, we call upon our legislative leadership to reject this unaffordable and unfair bill and consider the severe consequences on our energy affordability and our business reputation. And we look forward to further conversations.”
Cantor and Mike Egenton of the N.J. State Chamber of Commerce voiced alarm over the bill in December.
The General Assembly has not scheduled a vote for the legislation.
