TRENTON, N.J. — The iconic opening scene of “The Sopranos,” featuring Tony Soprano driving past oil storage sites along the New Jersey Turnpike, reflects the state’s deep ties to the fossil fuel industry. From the northern suburbs of New York City to the southeastern banks of the Delaware River near Philadelphia, New Jersey hosts a significant number of oil and natural gas facilities. Currently, state legislators are considering a new bill that would levy fees on these companies to help combat the ramifications of climate change.
On Thursday, a state Senate committee moved the bill forward, aiming to establish a Climate Superfund. This fund would function similarly to the federal initiative designed to clean up hazardous waste sites, funded by additional taxes on petroleum and chemical corporations to support ongoing environmental cleanup efforts. Other states, such as Vermont, have recently enacted comparable laws, while New York, Maryland, Massachusetts, and California are evaluating similar proposals.
The use of fossil fuels, including oil, gas, and coal, is a leading source of greenhouse gas emissions contributing to climate change. Sponsor of the bill, Democratic Senator John McKeon, explained, “This is simply a cost recovery tool. The question at hand is who should bear the financial burden for environmental damage: taxpayers or polluters?”
The proposed legislation would impose yet-to-be-determined fees on fossil fuel producers, directing the proceeds to the New Jersey Department of Environmental Protection. This agency would then allocate the funds in the form of grants aimed at enhancing the state’s climate resilience and adapting to severe weather phenomena. McKeon estimated that the fund could potentially reach $25 billion, which would assist homeowners in making necessary adjustments, like elevating properties in flood-prone areas or erecting protective sea walls.
Environmental advocate Molly Cleary, representing Clean Water Action, reiterated a common sentiment during the legislative discussions, emphasizing that the financial impact of the climate crisis should not fall on ordinary citizens. “Everyday individuals are not responsible for creating this crisis,” she pointed out.
However, the business community in New Jersey is opposing the bill. Ray Cantor from the New Jersey Business and Industry Association criticized the legislation, asserting that it would primarily escalate gasoline and heating oil costs for consumers. He stated, “The bill encompasses various flaws, including imposing retroactive liabilities on companies that provided legal and essential products to residents. It’s unconstitutionally vague regarding cost assessments and could be overridden by federal regulations, failing to address greenhouse gas emissions or climate change effectively.”
Alex Daniel, an attorney representing the New Jersey Civil Justice Institute, raised concerns about the bill potentially imposing taxes on actions taken by companies outside the state’s jurisdiction. “This legislation seems to return to past activities that were legal and endorsed by government entities,” he said. “At this moment, fossil fuels significantly contribute to the energy landscape across the United States.”
Additionally, Ed Waters from the Chemistry Council of New Jersey noted that the state’s two functioning oil refineries sustain 35,000 jobs and add $7 billion annually to the local economy. If the bill becomes law, it would take two years to review the damages sustained in New Jersey due to greenhouse gas emissions since 1995. During this period, the state would ascertain that each liable party would be held strictly accountable for the damages incurred.
Ben Dziobek, executive director of Climate Revolution Action Network, pointed out that the desire for tax relief is evident among residents. Supporting the idea of recovering climate adaptation costs from fossil fuel producers, he commented on the extensive environmental challenges faced by the state: “We’ve experienced fires, flooding, and droughts across New Jersey. It is apparent that large corporations are unwilling to take responsibility for their actions.”
An identical bill is currently still waiting for a committee hearing in the state Assembly. For the measure to become law, it must navigate through committees in both legislative houses and receive approval from the full Legislature before being sent to Democratic Governor Phil Murphy for his signature.
