Electric vehicle mandate puts N.J. consumers in impossible position | Opinion

By Michael Egenton

The federal government is on a path to completely upend the entire global auto industry with tariffs and sweeping policy changes that reverse years of climate investments.

The electric vehicle (EV) sector will be hit hard if the federal government rescinds tax credits for consumers and continues stopping investment in charging infrastructure around the country. A growing sector that saw more consumers choosing EVs now faces mounting uncertainty moving forward, as does the path to achieving our state’s climate goals.

This context cannot be ignored as Gov. Phil Murphy and state legislators discuss the future of climate policy and what these changes will mean for consumer prices and choice.

As a lifelong New Jerseyan, I take pride in supporting our climate ambitions, but we need to be practical when turning these aspirations into policy solutions.

Several years ago, the state adopted California’s Advanced Clean Cars II (ACC II) standards in an entirely different environment and if it is enforced as written, it will almost certainly exacerbate the affordability crisis consumers and families are already experiencing.

In 2024, only about one in seven new cars sold in New Jersey was electric. Under the ZEV mandate, electric vehicle sales must reach at least 43% by model year 2027 and 100% by 2035.

This means that for every 10 cars available to consumers on a dealer lot, four must be electric in 2027, and every one must be electric by 2035.

While this is a good goal to set, it fails to consider changing economic circumstances, consumer demand, and the state of our charging infrastructure.

All parties working towards these goals need more flexibility in how to achieve them, not a rigid mandate and harsh penalties.

This mandate will fundamentally change the car-buying experience, as consumers will have fewer choices for cars that fit their needs and budget.

Additionally, with fewer gas-powered cars on dealer lots, many buyers will turn to the used car market, driving prices up in a way similar to the COVID-19 pandemic and making car ownership even less attainable.

ACC II would make sense if the goal were to merely increase the availability of EVs, but the primary obstacle to a real and sustainable transition to EV adoption isn’t supply – it’s demand, which is impacted by the fact that our infrastructure is not ready to take on such an ambitious mandate.

Recent studies have shown that consumer demand for EVs is not yet where it needs to be to hit the 43% threshold. Without adequate charging access, purchasing an EV is simply impractical for some, especially for people in rural and low-income communities where charging stations are even scarcer.

While EV demand and state-level investment in the necessary infrastructure are generally increasing, the progress ultimately falls short in this moment relative to the ACC II targets. In fact, New Jersey ranked worst in the nation in terms of the ratio of charging stations to registered EVs.

Instead of fostering a natural transition to EVs, the mandate will effectively force consumers to choose an EV over a gas-powered car even if it does not make sense for their needs or budget.

Additionally, the limited availability of new gas-powered cars will inflate demand and spike prices in the used car market. Ultimately, consumers will be forced to purchase more expensive vehicles at a time when the cost of living is already forcing families to make tough choices about everyday needs.

This will push people to buy cars out of state so they can choose the car they want and avoid higher prices, undercutting New Jersey’s auto market and threatening local jobs.

Recognizing these very issues with the ACC II mandate and aiming to protect Maryland consumers from increased costs, Maryland Governor Wes Moore just issued an executive order delaying penalties for auto manufacturers for model years 2027 and 2028. New Jersey must follow suit to prevent the affordability crisis in the state from worsening.

While it is important to remain committed to our climate goals, a successful transition to clean transportation requires thoughtful, pragmatic policy and adequate time to build infrastructure and center consumer choice. We have an opportunity to move toward a cleaner, stronger future the right and responsible way, but without delaying ACC II’s implementation, our state’s consumers will bear the costs.

Calling your elected representative in the state Assembly or Senate is the most effective way to influence policy. To find your state Assemblymember and Senator to voice your position, go to the New Jersey Legislature website’s Legislative Roster.

Michael Egenton is executive vice president of the New Jersey Chamber of Commerce.

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