WASHINGTON, D.C. – The U.S. Environmental Protection Agency (EPA) has granted California a waiver under the Clean Air Act to enforce its Advanced Clean Cars II (ACCII) rule, which bans the sale of new gas-powered and traditional hybrid vehicles by 2035. The decision could pave the way for New Jersey and other states to adopt similar bans, sparking widespread debate over the future of vehicle markets, consumer choice, and environmental policy.
New Jersey is among a dozen states that have indicated plans to align with California’s ACCII regulations, requiring 100% of new vehicle sales to be zero-emission by 2035. The state has already taken steps to phase out gas-powered cars, but its electric vehicle (EV) adoption rate currently lags California’s.
As of the second quarter of 2024, only 13.25% of new vehicle sales in New Jersey were electric or plug-in hybrids, far below the 35% target required by ACCII regulations starting in 2026.
Industry groups have raised concerns about the feasibility and legality of implementing these rules outside of California, particularly in states like New Jersey where EV infrastructure and adoption have yet to meet the required benchmarks. Critics argue that following California’s lead would impose undue costs on consumers and limit vehicle options.
“Millions of Americans, including those in New Jersey, are at risk of losing their ability to buy new gas cars in their home states,” said Chet Thompson, president and CEO of the American Fuel & Petrochemical Manufacturers (AFPM). He warned that adopting the ban could drive up vehicle prices and transportation costs, while leaving states unprepared to meet EV sales targets.
The EPA’s approval comes as the U.S. Supreme Court prepares to hear a challenge to California’s ACCII mandate. A coalition of energy, agriculture, and biofuel groups has argued that California’s rule exceeds its legal authority and unfairly influences national vehicle policy. If upheld, the California waiver could allow New Jersey and other states to proceed with similar bans, further reshaping the automotive market.
While New Jersey Governor Phil Murphy has pushed for ambitious climate goals, including achieving 100% clean energy by 2035, questions remain about the state’s readiness to implement such sweeping changes. Investments in EV charging infrastructure and consumer incentives for EV purchases will need to accelerate to meet ACCII targets. Meanwhile, critics warn of potential economic fallout for residents and businesses dependent on affordable gas-powered vehicles.
The EPA’s decision solidifies California’s position as a leader in vehicle emissions regulation and sets the stage for other states, like New Jersey, to follow suit. Proponents argue that the move is critical for addressing climate change and reducing air pollution, while opponents contend it overreaches federal authority and disregards the preferences of many consumers.