Trenton, NJ – – New Jersey Governor Phil Murphy’s ambitious plan to phase out the sale of new gasoline-powered vehicles by 2035, known as the Advanced Clean Cars II rule, has entered a critical phase in 2025.
As part of the state’s broader climate strategy to combat greenhouse gas emissions and improve air quality, the rule is gradually transforming the automotive market. This year marks the first set of enforceable milestones, setting the stage for a zero-emission vehicle (ZEV) future. Here’s a look at the key features of the ban taking effect in 2025 and their implications for New Jersey residents and the auto industry.
Background of the 2035 Gas Car Ban
Announced in February 2023 and formalized in December 2023, the Advanced Clean Cars II rule aligns New Jersey with California’s stringent emissions standards. The regulation mandates that vehicle manufacturers increase the percentage of zero-emission vehicles—primarily electric vehicles (EVs)—in their new light-duty vehicle sales, starting with model year 2027 and reaching 100% by 2035. The rule, adopted by the New Jersey Department of Environmental Protection (DEP), does not prohibit the ownership or use of gas-powered vehicles, nor does it ban the sale of used gas cars. Instead, it focuses on phasing out new gas-powered car sales to reduce the transportation sector’s 37% contribution to the state’s climate pollution.
Governor Murphy has framed the initiative as a commitment to cleaner air and public health, stating, “The steps we take today to lower emissions will improve air quality and mitigate climate impacts for generations to come, all while increasing access to cleaner car choices.” However, the plan has faced criticism from business groups and lawmakers who argue it overlooks infrastructure challenges and consumer affordability.
2025: Laying the Groundwork
While the most significant sales mandates begin in 2027, when 43% of new light-duty vehicles must be ZEVs, 2025 is a pivotal year for preparatory measures. The following features of the ban have taken effect or are in progress this year:
1. Expanded EV Incentives and Rebates
To ease the transition to EVs, New Jersey’s 2025 budget builds on existing rebates introduced in prior years. The state offers up to $4,000 for EVs priced under $45,000 and $1,500 for vehicles between $45,001 and $55,000, alongside a $250 rebate for eligible EV chargers. In 2025, the Murphy administration allocated an additional $70 million from the Regional Greenhouse Gas Initiative (RGGI) to lower upfront costs for medium- and heavy-duty EVs, targeting commercial fleets. These incentives aim to address the $5,000–$15,000 price premium of EVs over gas-powered equivalents, despite long-term fuel savings of approximately $1,300 annually.
2. Charging Infrastructure Expansion
A major focus in 2025 is addressing New Jersey’s EV charging infrastructure gaps, a key concern raised by critics who note the state’s limited network. As of 2025, New Jersey has over 2,016 Level 2 chargers and 932 fast chargers, but more than 600 fast chargers are Tesla-exclusive, limiting access for non-Tesla EV owners. The state is leveraging a $75 million investment in EVs and charging stations, including $10 million from the FY24 budget, to expand public charging networks, particularly in urban areas and along highways. In 2025, new grants are supporting charger installations at multi-family housing and workplaces, addressing barriers for residents without private parking.
3. Stakeholder Engagement and Planning
The DEP and the New Jersey Board of Public Utilities (BPU) are actively engaging stakeholders in 2025 to refine the transition plan. This includes collaboration with automakers, utilities, labor unions, and environmental groups to ensure a robust electrical grid and sufficient ZEV supply. The BPU is also exploring the future of natural gas utilities, aiming to reduce fossil fuel reliance while preserving union jobs. These planning efforts are critical, as critics warn that New Jersey’s “fragile electric grid” may struggle to meet increased EV demand by 2035.
4. Public Awareness Campaigns
In 2025, the state launched campaigns to educate consumers about the benefits of EVs and the upcoming mandates. These efforts highlight the environmental and health benefits of ZEVs, as well as practical considerations like charging logistics. With EVs comprising 12% of new vehicle sales in 2024 (up from less than 4% of total vehicles on the road), the state is working to boost consumer demand, which has been hampered by long waitlists and sticker shock.
Challenges and Opposition
Despite progress, the 2035 ban faces significant hurdles. The New Jersey Business and Industry Association (NJBIA) argues that the expedited timeline ignores costs, feasibility, and infrastructure limitations, potentially burdening low- and moderate-income families. State Senator Michael Testa Jr. (R-Cumberland) has warned that rural areas lack adequate charging stations, and the mandate could disrupt jobs in auto shops and gas stations. A concurrent resolution by Senator Carmen F. Amato, Jr. (R-Ocean) in February 2025 challenged the DEP’s authority to implement related truck emissions rules, signaling potential legal battles.
Additionally, the rule’s reliance on administrative action rather than legislation makes it vulnerable to reversal by future governors, as Murphy’s term ends in January 2026. Historical precedent, such as Governor Chris Christie halting offshore wind projects initiated by Governor Jon Corzine, underscores this risk.
Looking Ahead
The 2025 milestones are foundational steps toward New Jersey’s zero-emission future. Environmentalists, like Doug O’Malley of Environment New Jersey, praise the initiative as a “big moment for cleaner cars,” citing reduced premature deaths and hospital visits due to cleaner air.
However, the success of the 2035 ban hinges on sustained investment, infrastructure development, and public buy-in.
As New Jersey joins states like California, New York, and Massachusetts in adopting Advanced Clean Cars II, the state’s 123,551 registered EVs (as of mid-2024) reflect growing momentum. Yet, with EVs still a fraction of the 2.5 million cars on the road, the next decade will test the state’s ability to balance ambition with practicality.