Assembly Environment Committee considers bills raising heating and fuel prices for consumers
NJ Assemblymen blast Democrats for bills that could raise energy costs amid utility price hearings
NEW JERSEY – Assemblymen Michael Inganamort and Gerry Scharfenberger, the only two Republicans on the Assembly Environment Committee, blasted Democrats for posting two bills on Monday that will increase the cost to fill up cars and heat homes, just days after announcing legislative hearings on rising utility costs.
The bills would set up a climate change superfund (A4696) that would tax fuel companies, and establish a low-carbon fuel standard (A3645) for gasoline producers in the state. Similar laws in New York, Vermont and California are being challenged in court or increasing consumer costs, the lawmakers say.
“One second Democrats can’t figure out why energy prices are soaring and then next, they pass more government mandates limiting supply and taxing companies. It doesn’t take a genius to understand that when you impose these kinds of regulations and fees on businesses, it will increase prices for consumers,” Scharfenberger (R-Monmouth) said. “These misguided policies are not going to impact climate change, but they will certainly crush struggling New Jerseyans.”
In New York, fossil fuel companies are being forced to contribute $75 billion over 25 years to pay for damage Democrats say they caused by contributing to climate change. Vermont’s climate change superfund took effect last July. Both states are facing lawsuits that argue the fund is unconstitutional.
“The superfund bill unfairly targets companies that are providing a much-needed energy source. More than 70% of New Jersey households rely on natural gas for heat. This legislation will undoubtedly produce more sticker shock as it goes after businesses that are already the highest taxed in the nation,” Inganamort said (R-Morris). “If the idea is to go after polluters, we as a country need to look at China.”
The lawmakers said they plan to introduce a resolution, similar to one in Florida, that urges the federal government to hold foreign polluters accountable, including the world’s largest polluter, China. The country accounts for over 30% of the total global emissions.
“The quest to make New Jersey the California of the East doesn’t take into account the terrible consequences – both environmental and economic,” Inganamort added. “California’s fuel standards and regulations are driving out businesses, increasing gas prices for drivers, and helping certain refineries become even more profitable by limiting supply.”
Both Chevron and Phillips 66 recently ceased operations in California following the state’s low-carbon fuel standard. The standard requires refineries to produce a certain type of costly fuel and limits the state’s ability to import gasoline from other regions. With less supply, gas prices spike when there are disruptions or outages. It also helps refiners that are able to operate in the state rake in record profits.
“The Democrats’ bills considered before the committee ultimately hurt the New Jersey residents who can’t afford to pay utility bills,” both Inganamort and Scharfenberger said. “If Democrats want to nail polluters, they need to look at the biggest offenders, not companies at home doing their jobs to deliver reliable energy. And, if they want to help consumers, they need to stop with the regulations and mandates limiting supply and increasing the cost of doing business in New Jersey. It really is that simple.”
