'There Must Be Consequences' For This!

New Jersey State Senator Diane Allen’s legislation prohibiting investments by State pension funds in businesses that have shirked their responsibility to clean up Superfund sites in New Jersey has been approved by the Senate State Government Committee.

View of the Passaic River from the Diamond Alkali Superfund Site in Newark, NJ. (Flickr)

“A business that has profited from polluting New Jersey’s environment and refuses its Superfund cleanup responsibilities shouldn’t be rewarded with the investment of State pension funds,” said Allen (R-Burlington). “There must be consequences to hold these bad corporate actors accountable.”

A profitable Argentinian state-owned oil company, YPF S.A., has attempted to discharge Superfund cleanup obligations for the Diamond Alkali Superfund site and parts of the Passaic River through the federal bankruptcy proceedings of a subsidiary.

“A profitable foreign business is attempting to shift a billion dollar expense to our taxpayers,” said Allen. “That’s just wrong.”

The cleanup of the Superfund site and the remediation of contaminated sediments in the lower 8.3 miles of the Passaic River are expected to cost $1.38 billion.

Allen’s legislation, S-3487, would prohibit the investment of New Jersey public employee retirement funds in any company, country, or country’s instrumentality that avoids its Superfund obligations to the State.

“New Jersey can’t control what federal bankruptcy courts will allow, but we can control who benefits from nearly $80 billion of State pension fund investments,” Allen added. “If other states and investment funds follow our lead, those with Superfund obligations may find the cost of cleanups to be less than the potential loss of investment. That would be good for taxpayers.”