Tug Of War Over ‘NJ Polluters Pay Act’ Continues In Essex County

ESSEX COUNTY, NJ — They’re not giving up their fight to make fossil fuel companies “pay their fair share” for the high price of climate change. That was the message from dozens of elected officials, environmentalists and community members as they rallied in Essex County this week.

On Wednesday, supporters of the “Polluters Pay to Make NJ More Affordable Act” gathered at Military Park in Newark to call for passage of the bill, which has seen vehement criticism from business advocates.

The proposed state law would penalize companies that have engaged in the trade or business of extracting fossil fuel or refining crude oil since 1995, and have contributed to greenhouse gas emissions. The legislation would generate $2.5 billion annually from an estimated 82 fossil fuel corporations, raising $50 billion over two decades, its sponsors say.

The money would be earmarked for flood protection, stormwater and sewage system upgrades, extreme weather preparation, health care related to climate change, upgrades to the electrical grid and energy-efficiency projects, among other uses.

The proposed law moved forward in the Statehouse earlier this year, but didn’t see a vote before Gov. Mikie Sherrill and lawmakers reached a deal on their new budget.

Advocates are calling for full floor votes on the bill this fall.

In Essex County – the site of Wednesday’s rally – the Polluters Pay Act has won support from several local lawmakers, who have signed on as co-sponsors. Meanwhile, the Essex County Commissioner Board and towns of Livingston, Millburn, Montclair, Maplewood and South Orange have passed resolutions in its favor.

The proposed law has also seen eager support from environmental activists, who argue that it’s a fair way to make wealthy corporations pick up costs New Jersey residents are already paying through rising property taxes, utility bills and insurance premiums.

On the flip side of the coin, pro-business groups have stiffly panned the bill, arguing that it is unconstitutional and will end up passing the cost along to consumers. Some Republican legislators have also criticized the proposal, with one state lawmaker calling it “sheer lunacy.”

“Make no mistake, the Democrats ‘Superfund’ policy – supposedly to punish the evil oil companies for providing a product we all demand – would result in a massive, $2.5 billion yearly increase in energy costs on New Jersey residents,” Sen. Declan O’Scanlon argued at a recent legislative hearing.

‘VICTIMS AND TAXPAYERS PAID FOR IT’

Attendees at Wednesday’s rally in Newark highlighted Essex County’s vulnerability to flooding and extreme heat – and the mounting financial toll of climate disasters on local families, businesses and taxpayers.

Recent research from Rebuild By Design found that approximately $20.6 billion in property value and $426.3 million in annual property taxes are at risk in Essex County by 2050, advocates said.

It’s not only money at risk, lawmakers say.

One of the bill’s primary sponsors, Sen. John McKeon, said there were more than 60 water rescues in Newark and Jersey City due to severe flooding last week.

McKeon also pointed to 29 deaths across the state that were likely caused by extreme heat over the July 4^th holiday weekend, and cross-continental wildfire smoke that has repeatedly drifted down to New Jersey.

“Victims and taxpayers paid for it,” he said.

Another prime sponsor of the bill, Assemblywoman Alixon Collazos-Gill, said it will also create “tens of thousands of jobs” amid a push for clean energy.

• Related: ‘Clean Energy’ Fuels Hiring Push In New Jersey, PSEG Says

“Millions of New Jerseyans are struggling to make ends meet while extreme climate costs continue driving up energy bills, property taxes and soaring insurance premiums,” Collazos-Gill said. “It’s only fair that the corporations most responsible for the climate crisis pay a share of these rising costs.”

McKeon and Collazos-Gill represent Livingston, Millburn, Montclair, Roseland and West Orange in the 27^th district, as well as Clifton in Passaic County.

Two other state lawmakers from Essex County are throwing their support behind the bill: Renee Burgess and Assemblyman Chigozie Onyema of the 28^th district, which includes Irvington, Maplewood, Newark and South Orange in Essex County, in addition to Hillside in Union County.

“Our residents have lived next to pollution for generations and have dealt with the impacts of extreme heat, flooding and dirty air,” Onyema said. “We pay for it with our health, through our property values, and with our hard-earned money.”

Burgess said the bill is about “protecting our families, our neighborhoods and our future.”

“Our communities have carried the burden of unhealthy environmental conditions for far too long, and we have to continue making sure the companies that contributed to those conditions are held accountable,” Burgess agreed.

Other local elected officials who lent their support to the bill this week included Essex County Commissioner A’Dorian Murray-Thomas, Newark Mayor Ras Baraka, and Newark city council members Louise Scott-Rountree, Michael Silva and C. Lawrence Crump.

‘ONE OF THE MOST ANTI-BUSINESS BILLS IN NJ HISTORY’

Not so fast, opponents of the bill say.

In separate op-eds posted in the recent days, New Jersey business and labor groups have said they remain staunchly opposed to the Polluters Pay Act – and warning about “dire” impacts on affordability, jobs and the state’s business climate.

In an op-ed published by the USA Today/Gannett NJ Network, NJBIA Deputy Chief Government Affairs Officer Ray Cantor blasted the proposal as “one of the most anti-business bills in state history.”

Cantor argued that it will retroactively penalize Garden State manufacturers $50 billion for legally providing fossil fuels – an essential product used by all New Jerseyans, including supporters of the bill.

“While supporters offer this bill as a free, $50 billion lunch to feed the state coffers, the facts are it would undeniably add to the gas and energy costs of all New Jersey residents and ratepayers during our energy affordability crisis,” Cantor said.

The U.S. Chamber of Commerce Institute for Legal Reform recently reported that the average New Jersey household would end up paying an extra $14,000 over the 20-year life of the bill, he pointed out.

Meanwhile, in an op-ed posted to binje.com, New Jersey State Building and Construction Trades Council President William Mullen said the bill would raise the costs of infrastructure for construction companies and their customers.

Economic costs rarely stay confined to the businesses against which they are initially assessed, Mullen wrote.

“Higher costs can ripple throughout the economy in the form of increased fuel, utility, freight, manufacturing and construction expenses,” he said. “Those costs are ultimately borne by employers, contractors, consumers and taxpayers.”

“When the cost of infrastructure increases, projects are delayed, reduced in scope or abandoned altogether,” Mullen continued. “Every additional dollar spent on energy, materials and transportation is a dollar that cannot be invested in schools, roads, bridges, water systems, public transit and other critical priorities.”

Mullen and Cantor also said there are constitutional questions of due process and fairness regarding the retroactive penalties under the bill – and it may result in a court battle, such as the ones seen in New York and Vermont.

Earlier this year, the Maryland Supreme Court threw out a lawsuit filed by three local entities that alleged climate damages from energy companies because it conflicted with the federal Clean Air Act, the NJBIA reported.

“The U.S. Supreme Court has already held that cases involving the regulation of interstate pollution arise only under federal law,” Cantor wrote in his op-ed.

“States do not have the authority to regulate or impose liabilities to regulate out-of-state emissions,” he added.

• Related: Hundreds More Job Cuts In NJ As Federal Figures Show Large Job Loss

ACTIVISTS: ‘PUT IT UP FOR A VOTE’

Despite the stiff pushback from business advocates, the bill continues to see strong support from a cross-section of nonprofits, labor unions, environmental groups and other community advocates – many of whom gathered in Newark this week to call for more movement in the halls of the Statehouse.

According to Amy Goldsmith, state director for Clean Water Action, more than 135 organizations have joined the “Make Polluters Pay Coalition.”

“It's time for legislative leadership to put it up for a vote,” Goldsmith urged.

Other supporters of the bill included:

Hazel Applewhite (CEO, Ironbound Community Corporation) – “Because at least 51% of the funds are guaranteed for environmental justice communities, the Make Polluters Pay Act guarantees that the people of Ironbound, who have long faced pollution and climate risks, finally see real investments in our homes, our streets and our health.”

Banita Herndon (president, HPAE Local 5089 at University Hospital) – “This legislation is a necessary step toward affordability, accountability, and prevention. Patients cannot postpone asthma, heart disease, or exposure to the next flood. Make the polluters pay their fair share – and give New Jersey families a healthier, safer future.”

Kim Gaddy (executive director, Newark South Ward Environmental Alliance) – “This is about affordability and justice. Newark residents are paying every day for the pollution the oil and gas industry has profited from for decades. Today is the day for the largest corporate polluters to pay for some of the damage to our lungs and property instead of sticking it to taxpayers, ratepayers and consumers.”

• Related: Polluters Pay Act Stalls In NJ: 'We're Not Going Anywhere,' Environmentalists Say

Send local news tips and correction requests to eric.kiefer@patch.com. Learn more about advertising on Patch here. Find out how to post announcements or events to your local Patch site.