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2024 Annual Public Policy Forum, December 4, 2024 REGISTER

The state Department of Environmental Protection is expected to publish proposed standards for the Advanced Clean Cars II rule in the New Jersey Register on Monday, a major step toward a ban of the sale of new gasoline-powered cards by 2035.

Monday’s publication will kick off a 60-day public comment period and a race to adopt the rule by the end of 2023, which would trigger electric vehicle sales requirements to start with the 2027 new car model year.

“While there is nothing wrong with reducing emissions, it is highly doubtful that New Jersey’s existing and planned EV charging infrastructure could support a dramatic change in such a compressed timeframe,” said NJBIA Deputy Chief Government Affairs Officer Ray Cantor.

“Such a steep ramp-up in electric-only vehicles over 12 years in New Jersey seems impractical, if not impossible. Such a policy also begs the obvious question of where all this increased electricity will be sourced from.”

With the staged phase-out of gas-powered vehicles commencing with the 2027 model year, New Jersey would be facing a mandated target of 43% of new car sales be EVs. That percentage would increase each year, eventually reaching 100% by 2035. Currently, New Jersey’s EV sales represent about 6% of all new car sales.

Cantor said the standards published on Monday could define what penalties or surcharges will be imposed on buyers of every non-EV car sold if targets are not reached under the mandate. That was the case in California, which the ACC II rule is based upon.

“It’s likely we will see the real-world impacts of costs much sooner than 2035,” Cantor said. “This mandate will likely drive up the cost of all cars in New Jersey, new and used, by thousands of dollars. That’s a direct strike against affordability in New Jersey and we will undoubtedly have larger numbers of residents unable to afford to drive.”