Dear Editor:
The New Jersey legislature is considering a bill (S3545/A4696) called the “Climate Superfund Act” that would make the largest fossil fuel corporations pay for the damages caused by climate change in New Jersey. The bill was passed by the New Jersey Senate Environment and Energy Committee on December 12, 2024, and now has to be passed by the full NJ legislature and signed by Governor Murphy. Modeled after similar legislation passed in New York and Vermont, the bill applies the logic of the original Superfund Act, which requires polluters to pay to clean up their contaminated sites, to the climate crisis. New York’s version would raise up to $3 billion annually for the next 25 years. It is not unreasonable to estimate that New Jersey could receive about $2 billion annually.
We are requesting that the Parsippany Town Council pass a resolution in support of the NJ Climate Superfund Act in order to help offset the financial burdens of climate change on Parsippany residents and businesses. Senator John McKeon, the prime sponsor of this bill, stated that municipal resolutions would be very helpful. Participation in this effort will not involve any financial or legal risk to Parsippany. If this Act is successful, the State will collect this money from the major climate polluters and create grants for municipalities to address the costs of projects for remediation from, and adaptation to, climate change.
Costs that can be covered include, but are not limited to: infrastructure resiliency (e.g., energy efficiency and weatherization upgrades to schools and municipal buildings); flood protection (e.g., upgrades to the Rockaway River flood wall); home buyouts (e.g., buyouts of flood-prone homes in Lake Hiawatha); remediation of toxic algae blooms (e.g., Lake Parsippany); upgrades to stormwater drainage systems; well replacement and water purification due to low water levels caused by droughts; storm recovery and more, which will mitigate climate impacts in Parsippany. This law will reduce the financial burdens of these events on town residents, and in some cases may provide the only means to address these costs.
The global costs of climate change remediation and adaptation are increasing yearly. A New York State Senator stated, “Repairing from and preparing for extreme weather caused by climate change will cost over $65,000 per household by 2050.” It is reasonable to assume that the cost per household from climate change in New Jersey will be similar.
The decision to support a bill that could provide great benefits at no risk should be straightforward. However, there are people who oppose it because they are concerned that it imposes burdens on businesses and distorts market incentives.
We think that companies whose products pollute and cause disease, property destruction, and death and who knowingly continue these practices should be held responsible and made to pay for these harms, not the individuals, families, and businesses who suffer because of these companies’ actions.
The argument for the Climate Superfund Act is the same logic that NJ and other states use to force polluters to pay for cleanups under the EPA Superfund Act; that polluters knew of the problems they were causing by dumping toxics. There is clear evidence that in the 1970’s Exxon recognized the climate problems that were being created by burning fossil fuels and not only refused to admit this but spent the next 55 years obfuscating and denying the truth and impeding government responses to this crisis.
Some people have also argued that forcing fossil fuel companies to pay for their harms will cause them to increase the price of their products. The price of oil is set by the global market based on global supply and demand. Individual companies cannot directly raise the price of their oil without losing market share.
Our elected officials were voted into office to protect us, the residents and businesses in Parsippany, not global fossil fuel companies who make billions of dollars in profits every year. Exxon’s global profits in 2023 were $36 billion while the global oil and gas industry earned record income of more than $2.4 trillion.
Who do you think should pay for climate-based damages, you (either directly or through increased property taxes) or the fossil fuel companies? Is your major concern burdens on the largest businesses on earth and distorted market incentives or your ability to stay safe and healthy and spend your money as you see fit?
We often complain about government “unfunded mandates” that increase local costs but provide no source of funds. Climate-related costs are similar. They are being forced on taxpayers with no recourse. The NJ Climate Superfund Act attempts to correct this imbalance.
On January 7, during the public portion of the Town Council meeting, residents of Parsippany will ask the Town Council to introduce a resolution in support of the NJ Climate Superfund Act. If you want the fossil fuel companies to help pay for the expected costs of climate change, please come to the meeting and make your voices heard.
Judy Hernandez, member of Parsippany Town Council
Ken Dolsky, resident of Parsippany
Matt Kavanagh, Parsippany Green Team co-leader
