NJBIA, saying EV mandate will hurt economy and perpetuate income inequality, launches campaign to stop Murphy mandate

Organization says Murphy’s 2035 goal would start having impact as early as 2027 model car year

The New Jersey Business & Industry Association’s campaign to stop Gov. Phil Murphy’s administration’s proposed ban of the sale of new gasoline-powered cars by 2035 came with a few planes over the Shore during Labor Day weekend — and a lot of strong words.

Simply put, all the benefits a green economy would bring to the state do not offset the impact of Murphy’s plan, NJBIA Deputy Chief Government Affairs Officer Ray Cantor said during the launch.

NJBIA and Cantor said Murphy’s plan will:

  • Hurt businesses and the economy;
  • Lead to greater economic inequity.

“While we can all work to reduce carbon emissions, the ban of gas-powered cars in such an expedited time frame will put a heavy strain on the limited resources of families, businesses, government and our utilities,” Cantor said.   

“Electric vehicles and hybrids are much more expensive than gas-powered cars up front, without even mentioning the added costs of home charging stations and volatile electricity prices. Federal and state subsidies don’t make up for those added costs, and they will not be around forever. These increases unfairly target our most vulnerable residents who need reliable transportation.

“This mandate cannot and should not cripple our communities and businesses, exacerbate income inequality in our state and remove our basic freedoms of choice for a proposal where the disadvantages outweigh any potential or perceived benefits.”

That’s why NJBIA took the skies over Labor Day weekend to draw attention to the issue — encouraging residents to voice their opposition to the ban with their local representatives at this site.

The background

The state Department of Environmental Protection published proposed standards for the Advanced Clean Cars II rule in the New Jersey Register on Aug. 24.

Its publication kicks off a 60-day public comment period and a race to adopt the rule by the end of 2023, which would trigger EV sales requirements to start with the 2027 new car model year.

An immediate state-mandated target would be to have EVs comprise 43% of new car sales in New Jersey for that year.

Currently, only 8% of registered vehicles in New Jersey are electric vehicles.

“Even if everyone could afford an EV, New Jersey will not have the infrastructure to support such a massive network of charging stations to be built in a reliable manner in less than 12 years,” Cantor said. “Such a policy also begs the question of where all this increased electricity will be sourced from.”

The state’s response

Kate Klinger, the director of the Governor’s Office of Climate Action and the Green Economy, has said the governor’s goals on EVs are not as broad-based as opponents are making it seem.

The reason: Most cars that are purchased are previously owned vehicles, so the regulation does not apply to those sales.

“There’s a lot of misinformation about what this order does,” she told ROI-NJ earlier this summer. “It requires that new vehicle sales in the state are zero emission by 2035. More than 50% of vehicles that are sold in the state are used. And there is absolutely no change to the used vehicle market.”

NJBIA’s goal

Cantor said New Jersey has the tools and resources to reduce carbon emissions without heavy-handed mandates.

“There are affordable and currently available transportation alternatives like compressed natural gas and renewable diesel,” he said. “Hydrogen vehicles are also in development.

“It should be up to consumers, not governments, to make the best choice on the transportation technology that is right for them. The stakes of this potential ban are high and implementing this rule incorrectly will undermine public confidence.”