HomeIndustryEnergy & UtilitiesDeGesero: Electric truck requirements would bring huge increase in costs to consumers

DeGesero: Electric truck requirements would bring huge increase in costs to consumers

Eric DeGesero, a lobbyist for the NJ Motor Truck Association, always makes it clear: He’s in favor of climate-change efforts – he just wants them done affordably and realistically.

Last week, in response to a joint Senate and Assembly Environment Committee hearing on NJ PACT – a coalition that aims to both stave off the worst impacts of climate change and adapt to unavoidable impacts already occurring across the state – DeGesero questioned if their methodology and goals went too far, too fast.

Especially when it comes to the electrification of the truck industry.

“Make no mistake, the requirement to electrify trucks will result in a truckload of cost increases on New Jersey consumers, since everything gets to the store or our front door via a truck,” he said. “The dramatically higher costs of electric trucks, charging, and infrastructure will be passed on to New Jersey families, at a time when NJ groceries prices have increased 28% more than the national average in 2024.

“In a little over four months, NJ PACT regulations mandate truck manufacturers sell one electric heavy-duty truck for every ten regular heavy-duty trucks go into effect. Heavy duty electric trucks cost three times a regular truck, there is no charging infrastructure, and the cost to build charging infrastructure is prohibitive.”

DeGesero said businesses will be stuck with the bill – which inevitably will be passed on to consumers.

“While the state of New Jersey and NJ Transit don’t need to worry about the cost to buildout a small amount of heavy vehicle charging infrastructure — since they are receiving funding from the federal government, taxes on fuel, and a 15% fare increase — the cost is certainly a huge concern for businesses who must pay for their own charging infrastructure, assuming the electric utility can even provide the power,” he said. “And on top of that, New Jerseyans also pay dramatically higher electric rates. The bottom line is that these costs will most certainly be passed along to consumers in the form of higher prices on everything they buy — in the local grocery store or online.”

DeGesero said the U.S. Energy Information Administration, in May 2024, estimated New Jerseyans pay 27% more for electricity than the national average.

He said the NJ PACT regulation on trucks impacts every medium and heavy duty truck all the way down to medium duty trucks such as super duty pick-ups and contractor vans.

“In effect, this new regulation will be another tax on consumers, small businesses, and farmers, all of whom are paying higher electric rates, and even property taxpayers, since municipal and county governments are covered by this regulation,” he said.

DeGesero also questioned the ability of the N.J. Department of Environmental Protection to install such a recommendation.

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