by Wells Winegar, Executive Director
On Thursday, the Assembly Environment and Solid Waste Committee will consider A3735, the so-called Climate Superfund Act, a proposal that would impose tens of billions of dollars in retroactive penalties on energy producers.
The New Jersey Policy Institute has been clear from the outset, this is bad policy.
While marketed as a climate solution, A3735 is not about shaping the future, it is about punishing the past. It targets companies for activities that were legal, necessary, and foundational to our economy, and in doing so, it creates real consequences for New Jersey families, workers, and job creators.
The Cost Will Fall on Families
Supporters claim that only large energy companies will bear the burden. That is not how the real world works.
Costs of this magnitude do not stay on balance sheets, they flow through the economy. That means higher prices at the pump, higher utility bills, and higher costs for goods and services that depend on energy to produce and transport. For a state already struggling with affordability, this moves us in the wrong direction.
A Direct Threat to Jobs and Economic Stability
New Jersey is home to just two remaining refineries. Together, they support tens of thousands of jobs, generate billions in economic activity, and contribute significant tax revenue.
A3735 puts those jobs and that economic activity at risk.
We have seen this trend before. The East Coast has lost the majority of its refinery capacity over time. Policies that increase financial pressure and uncertainty do not strengthen industries, they push them elsewhere.
A Dangerous Precedent
Perhaps most concerning, A3735 sets a precedent that should worry every employer in the state.
It tells businesses that even if they follow the law, they can still be penalized years later. That undermines predictability, discourages investment, and weakens confidence in New Jersey as a place to do business.
Likely Headed for Court
New Jersey would not be alone in facing the legal consequences of this approach. Similar laws in New York and Vermont are already tied up in litigation, including challenges from the U.S. Department of Justice.
New Jersey is likely to face the same outcome, prolonged legal battles, added costs, and continued uncertainty.
No Meaningful Climate Impact
New Jersey represents a small share of global emissions. This bill will not meaningfully impact climate outcomes, but it will increase costs here at home and weaken our economic position.
If policymakers are serious about addressing climate challenges, the focus should be on forward-looking solutions, innovation, energy reliability, and affordability.
The Bottom Line
A3735 is the wrong policy at the wrong time.
It raises costs, threatens jobs, and sends the wrong message about doing business in New Jersey.
The Legislature should reject it.
