Senate Democrats push for Polluter Pays Act before budget deadline

Supporters say fossil fuel companies should help cover climate-related costs now borne by taxpayers and ratepayers

Democratic members of the Senate Budget Committee on Wednesday urged legislative leaders to bring the Polluters Pay to Make New Jersey More Affordable Act up for a vote before lawmakers approve the state budget next week.

The call comes one day after the bill, S2338, advanced out of the Assembly Appropriations Committee and moved to the full Assembly for consideration. Lawmakers have until June 30 to pass a new state budget.

The legislation would require major fossil fuel companies that have contributed more than 1 billion metric tons of greenhouse gas emissions globally since 1995 to pay a combined $50 billion over 20 years to help cover the costs of climate-related damage in New Jersey.

Supporters say the money could be used for flood prevention, climate resilience projects, and infrastructure improvements without raising taxes or fees on residents and businesses.

“Beginning with Superstorm Sandy, our state has been ravaged by the effects of climate change,” Sen. Patrick Diegnan, D-Middlesex, a co-sponsor of the bill and member of the Senate Budget Committee, said during a State House press conference. “As we prepare to finalize the state budget, we need to ensure this legislation will provide the necessary funding to help our residents cover the cost of recovery.”

Other Democratic senators argued that taxpayers and utility customers are currently bearing the financial burden of increasingly severe storms, flooding, and extreme heat.

“For years, New Jersey has suffered as a result of the careless actions of large corporate polluters,” Sen. Linda Greenstein, D-Mercer, vice chair of the Senate Budget Committee and a co-sponsor of the bill, said in a statement. “Polluters Pay will hold big fossil fuel companies accountable for their role in causing the increasingly damaging effects of climate change.”

Sen. Renee Burgess, D-Essex, said delaying action would leave residents paying for climate impacts while fossil fuel companies avoid responsibility. Sen. Andrew Zwicker, D-Mercer, said the legislation would help address rising electricity costs and flood damage while requiring oil and gas companies to contribute to recovery efforts.

The measure currently has 19 Senate co-sponsors and 43 Assembly co-sponsors.

The bill has drawn strong support from environmental organizations but opposition from business groups and industry representatives, who argue it could face legal challenges similar to those confronting comparable laws enacted in New York and Vermont.