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Business Groups Push for Delay on New Jersey’s Electric Truck Regulations

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the staff of the Ridgewood blog

Trenton NJ, a coalition of 33 business organizations is calling on New Jersey lawmakers to delay the state’s adoption of California’s Advanced Clean Trucks (ACT) regulation, set to take effect on January 1, 2025. The coalition argues that the regulation could severely impact commerce in the state unless implementation is postponed to July 1, 2027.

In a letter addressed to Senate President Nick Scutari (D-Clark) and Assembly Speaker Craig Coughlin (D-Woodbridge), the coalition urged the passage of Senate Bill 3817, sponsored by Senator Patrick Diegnan, and Assembly Bill 4967, sponsored by Assemblyman Chris Calabrese. These bills propose a delay in the regulation’s enforcement.

Understanding the ACT Regulation

The ACT regulation mandates a specific ratio of electric heavy-duty trucks to be sold relative to traditional diesel trucks. While compliance falls on truck manufacturers, the regulation is effectively enforced through truck dealers, creating challenges in meeting demand for new diesel trucks.

As of late 2024, New Jersey truck dealers report an inability to meet customer demand for heavy-duty diesel trucks due to the ACT’s sales requirements for electric trucks.

Challenges Cited by Business Leaders

The coalition highlighted several obstacles to the widespread adoption of heavy-duty EV trucks:

  1. Cost: EV heavy-duty trucks are three times more expensive than diesel trucks.
  2. Weight Limitations: Heavy-duty EV trucks are 8,000 pounds heavier than diesel models, reducing payload capacity and necessitating more vehicles to perform the same work.
  3. Driver Shortages: More trucks on the road mean more CDL drivers are needed—an already scarce resource in the trucking industry.
  4. Infrastructure Needs: Heavy-duty EV trucks require megawatt-hour charging, necessitating costly upgrades to utility substations, which can range from $5 million to $35 million.
  5. Slow Progress on Charging Infrastructure: While federal funding has been allocated for charging projects, these efforts won’t be completed until 2029.
  6. Economic Impacts: Multi-state truck fleets may move their operations to states without ACT regulations, redirecting revenue from vehicle registrations to other states while still operating in New Jersey.

Balanced Support for EV Adoption

The coalition clarified that they are not opposed to heavy-duty EV trucks. Some companies are already beginning to integrate EVs for specific applications. However, they emphasized that the state is not yet prepared to meet the ACT’s requirements and that the associated costs could burden businesses and consumers alike.

Who’s Behind the Push?

The letter was signed by a diverse group of business organizations representing industries such as construction, transportation, retail, energy, and manufacturing. Notable signatories include:

  • New Jersey Chamber of Commerce
  • National Federation of Independent Business – NJ
  • NJ Motor Truck Association
  • Fuel Merchants Association of NJ

Looking Ahead

As the Legislature debates the proposed delay, the business community is pressing for a practical approach to EV adoption that balances environmental goals with economic realities.

 

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