"Polluters Pay to Make New Jersey More Affordable Act"; imposes cost recovery payments on certain fossil fuel companies for funds needed for climate change adaptation; establishes program in DEP to collect and oversee distribution of funds.*

The bill shifts from imposing liability for 'damages caused by climate change' (open-ended, determined by a State Treasurer assessment) to imposing a fixed total of $50 billion in cost recovery payments specifically for climate adaptation projects. The Legislature declares responsible parties strictly liable for this amount without regard to fault.

The covered period is fixed at January 1, 1995 through December 31, 2024, rather than running through the year the act takes effect. This locks in the emissions window regardless of when the bill becomes law.

Seventeen legislative findings are added (Section 2a) establishing the policy rationale, citing specific cost data (Superstorm Sandy losses, GDP impacts from heat, hurricane damage projections), referencing a 2026 Minnesota report, identifying over $15.3 billion in DEP-identified adaptation projects, and declaring that responsible parties shall be strictly liable for $50 billion total.

'Responsible party' is narrowed to entities engaged in fossil fuel extraction only (removing refining of crude oil). The nexus requirement replaces the prior sales tax connection requirement, using a constitutional standard instead. The threshold remains one billion metric tons of covered greenhouse gas emissions.

'Covered greenhouse gas emissions' is redefined to mean emissions attributable to fossil fuels extracted by an entity worldwide (not limited to within New Jersey), rather than emissions resulting from the use of fuels extracted or refined by an entity. This broadens geographic scope while narrowing activity scope.

The definition of 'climate change adaptation project' is expanded to include outdoor tree planting, distributed renewables and energy storage, workforce development programs (apprenticeship and training), food insecurity response, community food resilience, emergency food distribution capacity, and mental health care in addition to the original categories.

Payment terms change from 9 annual installments (20 percent first payment, then 10 percent per year) to 20 annual installments (5 percent per year), with mandatory CPI adjustment of subsequent payments. This significantly extends the repayment timeline and reduces near-term cash flow pressure on responsible parties.

A new nine-member public body corporate and politic, the New Jersey Climate Adaptation, Resiliency, and Affordability Trust, is established within but independent of the Department of the Treasury. It includes four ex officio members (DEP Commissioner, Transportation Commissioner, BPU President, State Treasurer) and five appointed public members with staggered terms. The trust must develop a Climate Adaptation Master Plan every five years after holding at least four regional public hearings.

A new 'Resilient Transportation and Transit Fund' is established in the Department of Transportation, credited annually with 12.5 percent of available moneys from the main Climate Adaptation, Resiliency, and Affordability Fund. Additional sub-funds are likely created in the truncated portion of the diff.

The reconsideration process is substantially expanded: the filing window increases from 15 days to 60 days (90 days for parties outside the US), and an iterative mechanism is added where updated notices can trigger new responsible parties, each of whom gets their own reconsideration period. Payment deadlines are extended if notices are issued late in this process.

A transparency requirement mandates that before issuing final cost recovery demands, the department must publish on its website a plain-language summary of the methodology, emissions factors, and publicly available data sources used to determine proportional responsibility.

A 'labor harmony agreement' requirement is introduced. Grant recipients with employees at funded facilities must enter agreements with labor organizations that include non-interference provisions (no picketing, work stoppages, or boycotts) and recognition rights for the union to demonstrate majority support through authorization cards.

An anti-assignment provision prohibits responsible parties from assigning any part of their cost recovery obligation to a non-responsible party or asserting claims for reimbursement or coverage against non-responsible parties.

The assessment authority shifts from the State Treasurer (who had two years to complete a damages assessment) to the Commissioner of Environmental Protection (who has six months to submit an assessment of covered greenhouse gas emissions attributable to each responsible party). The program is renamed from 'Climate Superfund Cost Recovery Program' to 'Climate Adaptation, Resiliency, and Affordability Program.'