Environment Committee Approves Climate Change Superfund Bill

The General Assembly’s Environment Committee approved legislation March 4 that creates a new climate superfund program.

HB 5156 establishes a “climate superfund cost recovery program” administered by the Department of Energy and Environmental Protection.

The program requires fossil fuel producers that meet specified historical emissions thresholds to make payments into a state climate adaptation fund over a multi-year period. 

The committee approved the bill on a party line vote, with a number of Republican lawmakers raising concerns about the measure’s cost impact.

Rep. Patrick Callahan (R-New Fairfield), the committee’s House ranking member, said the proposal represents a significant tax not only on the business community, but on all Connecticut residents.

He emphasized that any new costs imposed on fossil fuel producers will ultimately be passed through energy markets, increasing costs for households, manufacturers, and small businesses across the state. 

Cost Impact

Connecticut’s electric grid relies substantially on natural gas and oil-fired generation, particularly during winter reliability events and peak demand periods.

During a recent winter storm, 67% of the electricity generated in New England came from fossil fuels. 

“Fuel prices are a primary driver of wholesale electricity costs in the regional power market,” noted CBIA senior policy director Pete Myers.

“A fee imposed on oil and natural gas would only increase our energy prices in Connecticut.” 

Similar laws in New York and Vermont are currently subject to ongoing legal challenges, including lawsuits filed by the U.S. Chamber of Commerce and other business organizations. 

New York’s Climate Change Superfund Act, signed into law in 2024, is designed to collect $75 billion over a 25-year period from qualifying fossil fuel companies to fund climate adaptation projects.

The scale and structure of New York’s program have been cited in business and legal analyses as an example of the long-term financial obligations associated with climate superfund policies. 

As the bill moves to the state House, CBIA remains concerned it will exacerbate Connecticut’s already high energy costs, placing additional financial pressure on employers, families, and residents statewide. 

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For more information, contact CBIA’s Pete Myers (860.244.1921).