Yesterday afternoon, New Jersey Governor Mikie Sherrill (D) signed Executive Order 19, directing state agencies to “identify and analyze the impact of junk fees on consumers” and recommend “legislative and regulatory measures to reduce or eliminate them.” [some emphasis, links added]
While Gov. Sherrill may have lofty ambitions around making New Jersey more affordable, the state legislature in Trenton has different ideas.
Democratic lawmakers are actively trying to impose a government version of a “junk” fee on New Jersey residents through their so-called “climate superfund” legislation.
The legislation would slam a $50 billion retroactive tax on the American energy industry, inevitably increasing energy costs for the state’s residents.
Mixed Messages from Trenton
Since her inauguration in January, Gov. Sherrill has made “affordability” a centerpiece of her governing agenda. On the first day of her administration, she called attention to the high energy costs that have plagued the state for years.
Gov. Sherrill quickly acted, signing Executive Order 2, which declared a State of Emergency under the Disaster Control Act and “creates and expands multiple, expedited state programs to develop massive amounts of new power generation in New Jersey.”
Notably, the order calls the energy affordability crisis “an emergency that warrants decisive leadership and coordinated action.”
Yesterday’s Executive Order doubled down on the affordability pledge, with Gov. Sherrill proclaiming:
“…Here in New Jersey, we are leading the way taking on these junk fees to drive down costs for the people of New Jersey.”
An accompanying press release reaffirms the vow, reading:
“Americans pay billions of dollars a year in junk fees – hidden, unnecessary, or unexpected add-on charges that drive up the advertised price of goods and services, often with little or no value to consumers.” [emphasis added]
“New Jersey consumers deserve transparency and costs that aren’t loaded with hidden fees. These ‘junk’ fees fuel the affordability crisis for families and undermine confidence in the prices they see advertised.” [emphasis added]
But Governor Sherrill’s promise to address energy affordability is directly contradicted by the state legislature’s attempt to impose a backdoor $50 billion tax on energy production.
Earlier this month, the New Jersey General Assembly’s Environment and Solid Waste Committee voted 4-2 to advance the “Polluters Pay to Make New Jersey More Affordable Act,” which now sits with the Commerce and Economic Development Committee.
The Senate Budget and Appropriations Committee subsequently voted 3-2 to advance the companion bill, which now sits with the Budget and Appropriations Committee.
The climate superfund bill would fit the Executive Order’s own definition of a “junk” fee, which is:
“…Hidden, surprise, or excessively overpriced fees, including those associated with a good or service that provides little or no benefit to the consumer.” [emphasis added]
Everyone Wants Affordability
The press release accompanying yesterday’s Executive Order includes quotes from several advocacy groups that highlighted the breadth and impact of the affordability crisis on families in the Garden State.
Ben Winters and Emily Peterson-Cassin of the Consumer Federation of America said:
“Costs are out of control across the whole economy, making predatory junk fees even more infuriating and unfair to consumers.” [emphasis added]
Winston Berkman-Breen of Protect Borrowers said:
“Junk fees have no place in a fair economy.”
Democratic lawmakers’ climate superfund would exacerbate the affordability crisis by driving up costs and adding additional government-sponsored junk fees.
Bottom Line
Gov. Sherrill seems committed—at least publicly—to addressing the affordability crisis facing New Jersey residents from Newark to Cape May. Will Gov. Sherrill signal her intent to veto the state’s climate superfund bill, or will she allow the legislature to implement its own junk fee?
Top: Governor Mikie Sherrill addresses the New Jersey Legislature during her 2027 budget presentation. Screencap.
Read more at EID Climate
So many legislatures seem to be loaded with “brainiacs” convinced that raising taxes lowers costs and prices. And the dumbest example is a punitive tax on a energy production.