New Jersey is moving closer to a landmark climate accountability framework with the advancement of the Climate Superfund Act (S3545/A4696) through key Senate committees as of January 9, 2026. The legislation is designed to require major fossil fuel companies to take financial responsibility for climate-related damages affecting the state, ranging from infrastructure and public health impacts to environmental restoration projects. Recent amendments have refined the scope and financial mechanisms of the bill, generating both optimism and controversy among policymakers, business groups, and environmental advocates.
The bill specifically targets companies involved in extracting or refining fossil fuels that collectively emitted more than one billion metric tons of greenhouse gases globally between January 1, 1995, and the year the act takes effect. Under the proposed law, these companies would face “strict liability,” meaning New Jersey would not need to prove negligence—only that the emissions contributed to climate change and resulting damages in the state. Companies would be required to make payments proportional to their historical share of global greenhouse gas emissions, providing a direct link between their past activities and the financial responsibility they carry today.
Financially, the Climate Superfund Act mandates that the State Treasurer complete a comprehensive assessment of climate-related damages within two years of enactment. This evaluation would include costs associated with flooding, storm damage, infrastructure deterioration, and threats to public health and natural resources. The act sets a retroactive liability target of $50 billion over the next two decades, with payment options allowing companies to settle in full within six months or follow a nine-year installment plan beginning with a 20% initial payment and 10% annual payments thereafter.
All collected funds would be deposited into the Climate Superfund Cost Recovery Program Fund, a non-lapsing account restricted exclusively to climate change adaptation initiatives. Eligible projects include flood protection measures, seawalls, stormwater management upgrades, defensive improvements to roads, bridges, and transit systems, home buyouts in flood-prone areas, and modernization of the state’s electrical grid with microgrids. Notably, the legislation mandates that at least 51% of these resources benefit communities historically overburdened by environmental pollution, ensuring a focus on environmental justice and equity.
Recent amendments to the legislation have generated discussion and some controversy. Exemptions for New Jersey’s two remaining refineries in Linden and Paulsboro were introduced to protect local jobs, a move criticized by environmental groups as potentially undermining the bill’s goals. At the same time, over 100 business organizations, including the New Jersey Business & Industry Association, continue to oppose the measure, arguing that it may be unconstitutional and could drive up fuel and energy costs for residents.
As New Jersey advances toward implementation, the Climate Superfund Act represents a significant attempt to hold fossil fuel companies accountable while providing dedicated funding for infrastructure and environmental adaptation projects across the state. Policymakers, businesses, and residents alike will be closely watching the law’s progress, given its potential to reshape climate policy and state funding priorities for decades to come. For detailed information and resources on state programs and environmental initiatives, readers can explore New Jersey Resources.
