For Immediate Release
Hartford, Conn: Today, as state lawmakers and members of the public debate legislation that would create a so-called “Climate Superfund,” the Connecticut Energy Marketers Association (CEMA) is issuing a stark warning about the consequences if the bill becomes law.
“They call it a ‘Climate Superfund.’ We call it the biggest proposed tax hike the State of Connecticut has ever seen,” said Chris Herb, President and CEO of CEMA. “If this passes, Connecticut residents will ultimately bear the burden of $13 billion in new taxes.”
“Anyone supporting this proposal is supporting a 33-cent increase in the price of gasoline per gallon,” Herb added. “They are also supporting higher electric bills and higher home heating costs. You cannot impose billions of dollars in new costs without raising prices.”
According to CEMA’s industry analysis, H.B. No. 5156, An Act Concerning a Climate Change Superfund, would result in approximately $13 billion in new taxes. The bill applies to companies engaged in extracting fossil fuels or refining crude oil that generated at least one billion metric tons of greenhouse gas emissions during a 30-year period between January 1, 1995, and December 31, 2024. Based on similar legislation enacted in New York, CEMA estimates the financial impact in Connecticut would total approximately $13 billion.
Supporters of the legislation argue that petroleum producers would absorb the cost of this $13 billion tax. CEMA says that is not the case.
“This is our industry, and we understand how it works,” Herb said. “We represent 600 locally owned home heating fuel companies and approximately 75 percent of Connecticut’s gas stations, all of which are locally owned businesses. Petroleum producers will not be able to absorb a retroactive 30-year tax of this magnitude. The cost will be passed on to our members and their customers. Plain and simple.”
“At a time when energy costs are already too high in Connecticut, a massive tax increase like the one proposed would place an enormous burden on working families, seniors, and small businesses,” Herb continued. “If this passes, remember that we warned you.”
It is also important to note that petroleum producers are prohibited from owning and operating gas stations in Connecticut. The state’s fuel retailers are locally owned small businesses, and they, along with their customers, would shoulder the impact of these new costs.
Supporters acknowledge that the proposal would primarily fund adaptation projects rather than directly reduce emissions, raising questions about its effectiveness. Even if Connecticut were to eliminate all emissions entirely, the impact on global temperatures would be negligible.
“This policy would come with real-world consequences,” Herb said. “It would do nothing to change the climate, but it would cause real harm to working families, seniors, and small businesses.”
About CEMA
The Connecticut Energy Marketers Association (CEMA) is a nonprofit organization representing more than 1,600 locally owned businesses that provide home heating fuels and operate the majority of retail gasoline stations in Connecticut. Members also include propane and kerosene dealers serving residential, commercial, and municipal customers statewide.
The hearing is taking place in Room 2B of the Legislative Office Building in Hartford at 11:00 a.m. and is available live on YouTube CTN.