Livingston and Millburn have passed resolutions supporting a state bill that would charge 82 fossil fuel companies $2.5 billion a year.
The "Polluters Pay to Make New Jersey More Affordable Act" (Senate Bill 2338/Assembly Bill 3735) would raise an estimated $50 billion over 20 years from corporations that have extracted fossil fuels or refined crude oil since 1995, according to its sponsors. Supporters rallied at Military Park in Newark on Wednesday, Aug. 26, pushing for a floor vote this fall, Patch reported.
The bill's prime sponsors include the 27th district's own legislators: Sen. John McKeon and Assemblywoman Alixon Collazos-Gill, who represent Livingston, Millburn, Montclair, Roseland and West Orange, along with Clifton in Passaic County.
At the rally, McKeon cited more than 60 water rescues in Newark and Jersey City from flooding the week prior and 29 deaths likely caused by extreme heat over the July 4 holiday weekend.
"Victims and taxpayers paid for it," McKeon said.
Revenue from the bill would fund flood protection, stormwater and sewage system upgrades, extreme weather preparation, health care related to climate change, electrical grid improvements and energy-efficiency projects, among other uses. At least 51 percent of the money would go to projects benefiting overburdened communities, according to NJBiz.
The Essex County Commissioner Board and the towns of Montclair, Maplewood and South Orange have also passed resolutions backing the measure. Sen. Renee Burgess and Assemblyman Chigozie Onyema of the 28th district also support the measure.
Business groups warn of higher costs
Opponents say the bill would raise energy prices for the same residents it claims to help.
Ray Cantor, deputy chief government affairs officer for the New Jersey Business & Industry Association (NJBIA), called the proposal "one of the most anti-business bills in state history" in an Aug. 20 op-ed. Cantor cited a U.S. Chamber of Commerce Institute for Legal Reform report estimating the average New Jersey household would pay an extra $14,000 over the bill's 20-year life.
William Mullen, president of the New Jersey State Building and Construction Trades Council, also opposed the bill in a separate op-ed. Both Cantor and Mullen raised constitutional questions about retroactive penalties, pointing to legal challenges in New York and Vermont. Earlier in 2026, the Maryland Supreme Court threw out a climate-damages lawsuit that conflicted with the federal Clean Air Act, according to the NJBIA.
Sen. Declan O'Scanlon argued at a legislative hearing that the bill would impose a $2.5 billion yearly energy cost increase on New Jersey residents.
What happens next
The bill was pulled from the June 30 legislative voting session and did not advance before Gov. Mikie Sherrill and lawmakers finalized the state budget. A June 23 fiscal estimate by the nonpartisan Office of Legislative Services concluded the state's potential revenue under the bill is indeterminate, citing uncertainty over assessments, legal challenges and collection timelines.
More than 135 organizations have joined the "Make Polluters Pay Coalition," according to Amy Goldsmith, state director for Clean Water Action. Advocates are pressing legislative leadership for a full floor vote this fall, though no specific date has been scheduled.
Research from Rebuild By Design found that roughly $20.6 billion in Essex County property value and $426.3 million in annual property taxes are at risk by 2050, advocates said at the Aug. 26 rally.
