Affordable Energy for New Jersey has called for a pause on electric vehicle and building electrification mandates, citing risks outlined in the state’s 2019 Energy Master Plan. The group made the announcement on X.
According to the 2019 New Jersey Energy Master Plan (EMP), the transportation sector accounted for nearly half of the state’s greenhouse gas emissions, making electrification of vehicles and buildings central to its strategy. The EMP outlined ambitious goals, including deploying 330,000 light-duty electric vehicles (EVs) by 2025 and transitioning new construction to net-zero carbon standards. However, it also flagged that such rapid adoption could strain grid infrastructure and require comprehensive planning.
A 2024 analysis by the Garden State Initiative estimates full implementation of the EMP could cost New Jersey residents around $40 billion, warning of “unworkable” economic impacts. It notes mandates such as 300,000 EV sales by 2025 and 2 million by 2035 will escalate electricity demand and infrastructure costs. The report suggests that alternatives like extending existing nuclear plants or incentivizing efficient internal-combustion vehicles might achieve emissions goals more affordably.
The New Jersey Business & Industry Association (NJBIA) has recommended postponing the implementation of the ACC II electric vehicle mandate, noting that EVs made up 14% of new vehicle sales in 2024 compared to the 43% target for 2027. NJBIA states that current mandates may result in higher costs for consumers and proposes suspending penalties for noncompliance until EV sales increase. The organization references Maryland’s recent delay of similar mandates as an example for New Jersey policymakers.
Dr. Sanem Sergici is a Principal at Brattle’s Boston office, specializing in the economic analysis of distributed energy resources (DERs) and their impact on utility business models, retail rate design, and grid modernization. She has led studies on retail pricing, energy efficiency, and Advanced Metering Infrastructure (AMI), contributing to regulatory approvals and the development of innovative rate offerings for electricity customers. Dr. Sergici holds a Ph.D. in Applied Economics from Northeastern University and has been recognized in Public Utility Fortnightly Magazine’s “Fortnightly Under 40 2019” list, with expertise in areas including electrification, resource planning, and alternative ratemaking mechanisms.
