New Jersey halts electric vehicle rebates due to high demand

NEW JERSEY — New Jersey residents looking to buy or lease an electric vehicle won’t be able to get government reimbursement, at least temporarily, because the state’s program is so popular it’s already running out of money, officials said.

The program Recharge New Jersey shelled out about $35 million for the fiscal year ending in July, according to the state’s Public Utilities Board. The board said Monday it was suspending the program because all allocated funds will soon be disbursed, based on the current rate of approval of applications and orders for eligible vehicles.

Now in its third year, the program awards state residents up to $4,000 just when they buy or lease a new electric vehicle. On average, electric vehicles now cost more than $58,000, according to Kelley’s Blue Book, a price out of reach for many American homes. Federal tax credits and other incentives are designed to lower prices and attract more buyers.

The New Jersey Board of Public Utilities estimates the program will support the purchase or lease of more than 10,000 vehicles this fiscal year and is expected to be operational again once the new fiscal year begins July 1. A spokesman for the Public Utilities Commission, Peter Peretzman, said Tuesday he was unsure whether there were plans to increase funding for the program for the next fiscal year.

The Utilities Commission estimates that the program, since its launch in May 2020, will have provided more than $90 million in incentives to lease or purchase nearly 25,000 electric vehicles.

By the end of 2022, there were more than 91,000 electric vehicles on state highways, the council said, with electric vehicles accounting for 8% of all new car sales in New Jersey last year.

New Jersey is among the states that have successfully implemented incentive programs for electric vehicles. A reimbursement program in Oregon will also have to stop next month because too many people are applying and the program is running out of money.

The Biden administration has proposed tough car pollution limits that would require up to two-thirds of new vehicles sold in the United States to be electric by 2032, nearly ten times more than current electric vehicle sales.

The proposed regulations, announced last week by the Environmental Protection Agency, would set exhaust emissions limits for the 2027 to 2032 model years that are the strictest ever imposed. The proposed tailpipe pollution limits do not require a specific number of electric vehicles to be sold each year, but rather require limits on greenhouse gas emissions. Based on automaker compliance, the EPA projects that at least 60% of new passenger vehicles sold in the United States will be electric by 2030 and up to 67% by 2032.

Yet a new survey released last week shows that many Americans are still unconvinced that their next cars will be electric, with high prices and too few charging stations serving as major deterrents.

Environmental groups say tougher tailpipe pollution standards are needed to clean the air we breathe and prevent the worst future damage from climate change, including even more extreme weather events.

New Jersey has suspended its rebates for the purchase or lease of electric vehicles because all funds for the popular program in the current fiscal year have already been or will soon be disbursed, according to state officials.

The program Recharge New Jersey, now in its third year, provides up to $4,000 when an in-state resident purchases or leases a new electric vehicle. The state Board of Utilities announced on Monday that it was suspending the program, citing its current rate of application approvals and orders for eligible vehicles,

Point-of-sale incentives at showrooms and dealerships for the current fiscal year began last July, and the estimated $35 million disbursed under the program this year will support the purchase or lease of more than 10,000 vehicles, BPU officials said. In total, the BPU expects the program to have provided more than $90 million in incentives for the lease or purchase of nearly 25,000 electric vehicles since its launch in May 2020.

State officials say that by the end of 2022, there were more than 91,000 electric vehicles on New Jersey’s roads, with electric vehicles accounting for 8% of all new car sales for the year.

President Joe Biden has set an ambitious goal of having half of all new passenger vehicles sold in the United States run on electricity by 2030, and New Jersey is among the states that have succeeded with incentive programs for electric vehicles. In Oregon, officials announced last month that they would temporarily suspend discounts starting next month because too many people were applying and the program was running out of money.

Electric vehicles now average more than $58,000, according to Kelley’s Blue Book, a price out of reach for many American homes. Federal tax credits and other incentives are designed to lower prices and attract more buyers.

Biden administration officials say more electric vehicles and parts will be made in the United States over time, creating a national supply chain and more jobs. Tax credits and other measures will also end the United States’ reliance on China for parts and minerals, officials say.