TO:                       Members of the Senate Budget and Appropriation Committee

FROM:                 Hilary Chebra, Director, Government Affairs, CCSNJ

RE:                        S3545 (McKeon/Smith/Mukherji)

The Chamber of Commerce Southern New Jersey (CCSNJ) respectfully opposes S3545 (McKeon/Smith/Mukherji), the “Climate Superfund Act.”

This bill would subject companies to retroactive liability for emissions stretching back decades, holding businesses accountable for conduct that was lawful, essential to economic development, and consistent with federal and state energy policies at the time. This type of retrospective liability undermines fundamental principles of fairness and predictability in law and threatens a stable business environment.

The bill’s broad and unprecedented liability framework also creates significant risk of expansive interpretation and downstream legal exposure. This uncertainty would ripple across supply chains and industries that support energy infrastructure throughout the state. Despite assertions that only large fossil fuel producers would bear these costs, the reality is that cost-recovery obligations are likely to be passed on to consumers, resulting in higher fuel, utility, and energy prices. Such increases would disproportionately impact residents, and small businesses already facing elevated energy costs.

New Jersey’s remaining refineries and energy infrastructure play a critical role in the state’s economy, contributing billions of dollars in economic activity, supporting tens of thousands of high-quality jobs, and generating substantial state and local tax revenue. Legislation that jeopardizes this economic footprint risks job losses, reduced private investment, and a decline in New Jersey’s overall competitiveness.

Additionally, the bill rests on the assumption of a direct causal link between historical emissions from specific entities and present-day, state-level climate impacts. The scientific and legal frameworks necessary to establish and quantify such liability remain unsettled and highly contested. As a result, this legislation is likely to trigger prolonged and costly litigation, diverting resources away from practical, forward-looking climate resilience efforts.

CCSNJ supports pragmatic, cost-effective approaches to addressing climate impacts that strengthen resilience while preserving economic growth. Policies that encourage innovation, energy efficiency, infrastructure investment, and public-private partnerships offer more constructive and durable solutions than a Superfund-style liability regime that introduces legal uncertainty and economic risk.

For the reasons outlined above, CCSNJ respectfully opposes S3545 (McKeon/Smith/Mukherji).