Saying the state of commerce in the state will be harmed dramatically unless action is taken, a group of 33 business organizations are urging the Legislature to pass a bill that delays the state’s participation in California’s electric truck regulation (called the ACT) until at least July 1, 2027.
In a letter to State Sen. President Nick Scutari (D-Clark) and Assembly Speaker Craig Coughlin (D-Woodbridge), the groups urged the passage of bills sponsored by Sen. Diegnan (S3817) and Assemblyman Calabrese (A4967), which calls for the delay.
The ACT regulation, which is scheduled to take effect on Jan. 1, 2025, requires a certain ratio of EV trucks to be sold relative to regular diesel trucks, before additional diesel trucks can be sold. While the point of compliance is upon truck manufacturers, they are enforcing it against truck dealers.
As of fall 2024, New Jersey truck dealers report that they are not able to satisfy customer requests for new heavy-duty diesel trucks since they haven’t sold the requisite number of heavy-duty EV trucks.
The group said they haven’t sold enough heavy-duty EV trucks for one reason – no one wants to buy them in proportion to how many the manufacturers are requiring to be sold.
Among the reasons:
- EV heavy-duty trucks are three times more expensive than regular heavy-duty trucks;
- Heavy-duty trucks cannot exceed 80,000 GVWR lbs. Heavy-duty EV trucks are 8,000 lbs. heavier, so for every ten existing heavy-duty trucks, EV heavy duty trucks will necessitate an eleventh;
- More trucks require more CDL drivers at a time when industry is having difficulty filling positions;
- Passenger cars charge in kilowatt hours, heavy duty trucks charge in megawatt hours. This order of magnitude requires more infrastructure, not only for the bank of heavy-duty EV truck chargers but possibly utility upgrades like a new or expanded substation. The US Department of Energy estimates a utility substation upgrade can cost up to $5 million and a new substation can cost up to $35 million;
- In the past four months, the Murphy Administration announced federal funding for two heavy duty vehicle charging projects: $100 million for the charging of 130 NJ Transit buses in the Meadowlands and NJ’s participation in a $250 million multi-state grant for public heavy-duty EV charging on the I-95 corridor, of which NJ’s share is $84 million. Both projects will be finished in 2029;
- For multi-state truck fleets adoption of ACT may result in them re-domiciling in a state that has not adopted the regulation. For many, they already have physical locations in other states. This means the annual registration of approximately $1,500 per truck will go to another state. And those new diesel trucks will drive the same routes, serve the same customers, and park in the same New Jersey locations as they do today.
The group wrote: Please understand we are not opposed to EV heavy-duty trucks and some companies are beginning to use them in select applications. But as a state we are simply not ready for the requirements that ACT imposes, nor the costs that will be borne by all consumers.
The letter was signed by:
- Affordable Energy for NJ
- Associated Builders and Contractors – NJ
- Beer Wholesalers Association of NJ
- Bus Association of NJ
- Chamber of Commerce Southern NJ
- Chemistry Council of NJ
- Commerce and Industry Association of NJ
- Engineers Labor-Employer Cooperative 825
- Fuel Merchants Association of NJ
- Garden State Seafood Association
- International Union of Operating Engineers Local 825
- Mid-Atlantic Hearth Patio & Barbecue Association
- National Federation of Independent Business – NJ
- National Waste and Recycling Association
- NAIOP-NJ
- NJ Air Conditioning Contractors Association
- NJ Apartment Association
- NJ Asphalt Pavement Association
- NJ Association of Counties
- NJ Building Material Dealers Association
- NJ Business and Industry Association
- NJ Chamber of Commerce
- NJ Coalition of Automotive Retailers
- NJ Construction Materials Association
- NJ Farm Bureau
- NJ Food Council
- NJ Motor Truck Association
- NJ Propane Gas Association
- NJ Retail Merchants Association
- NJ Warehouse and Movers Association
- Shipping Association of New York and New Jersey
- Truck Renting and Leasing Association
- Utility and Transportation Contractors Association of NJ
