A recent U.S. Senate vote has repealed California’s Advanced Clean Car Act rule, a decision that NJBIA President and CEO Michele Siekerka believes will benefit New Jersey businesses and residents. Speaking with NJ101.5 Morning Host Eric Scott, Siekerka explained the potential impacts of this legislative change.
The California rule, adopted by the Murphy administration, aimed to ban new gas-powered car sales by 2035 and set specific electric vehicle (EV) targets for New Jersey starting next year. “By next year 2026, if that mandate was in place, we would have had to have 43% of New Jersey car sales be EVs,” Siekerka noted. She highlighted that currently only 14% of cars registered in New Jersey are EVs.
Both Congressional houses passed a resolution under the Congressional Review Act to overturn an EPA waiver from the Biden era that allowed California’s ban on new gas, diesel, and hybrid vehicles. The resolution now awaits President Trump's signature.
Ending EV mandates was a commitment made by President Trump from his first day in office. With the waiver overturned, states may need to align with a less stringent EPA standard which still includes emissions targets requiring some level of EV mandates. It is expected that under Trump's administration, there will be collaboration with auto manufacturers and the business community to revise these standards.
Siekerka pointed out issues with affordability and infrastructure as barriers to New Jersey's compliance with the EV mandate. She said consumers should have choices based on affordability when purchasing cars: “Folks need to be able to buy the type of car that they can afford.”
Infrastructure concerns were also raised: “You can’t have 50 or 500 people charging their cars in a high rise in the middle of Newark," she said regarding current limitations for widespread EV adoption.
Governor Phil Murphy has not yet commented on this development while California Governor Gavin Newsom plans legal action against the repeal.
