A public-private group, Rebuild By Design, formed after Superstorm Sandy, has suggested several funding mechanisms to bolster New Jersey’s defenses against future climate-related disasters. These recommendations include a 2% surcharge on property insurance policies, mandatory fees on the oil and gas industries, and the holding of a public referendum to approve investments in climate resiliency projects.
The group’s report highlights the urgency of such measures, given the significant financial toll climate-related disasters have taken on the state over the past decade.
The report underscores that New Jersey has incurred $7.2 billion in costs from climate-related disasters over ten years. Rebuild By Design emphasizes the need for proactive investment in resilience projects rather than reactive spending after disasters.
This includes advocating for a property and casualty insurance surcharge and creating a “Superfund” funded by mandatory charges on the oil and gas industries. The proposal aims to ensure that funding is available before disasters strike, protecting the most vulnerable communities.
Rebuild By Design Proposes Surcharges and Fees to Fund New Jersey’s Climate Resilience Projects
Legislative action has already begun, with two Democratic state lawmakers introducing a bill to implement these measures. New York has passed a similar law pending action by Governor Kathy Hochul, and other states like Massachusetts, Vermont, and Maryland are exploring comparable initiatives.
Amy Chester, managing director of Rebuild By Design, stresses the importance of shifting federal funding priorities to support proactive resilience building, thereby reducing the suffering caused by climate disasters.
Rebuild By Design has developed various programs in New York, New Jersey, and Connecticut based on lessons learned from Sandy.
These include constructing hard barriers like flood walls and gates, implementing nature-based solutions such as wetlands restoration, and improving stormwater and drainage systems. New Jersey has faced 14 federally declared disasters from 2011 to 2021, affecting all 21 counties, which further highlights the need for these resilience measures.
Environmental groups support the call for stable funding to mitigate future storms rather than merely cleaning up afterward. They point to New Jersey’s rapid warming and the increasing frequency of severe weather events as urgent reasons for taking preventative action.
While there is consensus on the need for increased resilience, Ray Cantor from the New Jersey Business and Industry Association cautions that discussions on funding must consider feasibility and affordability. The state’s political leaders have yet to respond to these proposals, but the dire consequences of past storms, particularly Sandy, underscore the critical need for effective resilience strategies.
