On April 17, 2023, the New Jersey Board of Public Utilities (BPU) announced the abrupt “pausing” of the third phase of the state’s Charge Up New Jersey electric vehicle (EV) incentive program because the $30 million of appropriated funds had been exhausted. The third phase launched on July 25, 2022. [Note: The fourth phase of the program is expected to launch sometime in July, after the State budget has been approved.]
The prior two phases of the program also ended abruptly when the funding was exhausted. The inaugural phase was a post-sale incentive that opened in May 2020 and ended in December 2020. Phase Two of the program morphed into a cash-on-the-hood/post-of-sale program that launched on July 6, 2021, and was open until September 15, 2021. Both phases ended well short of the one-year anniversaries of their respective start dates. If nothing else, the trajectory of the one-year life of the statutory 10-year incentive program continues to prove that the consumer appeal of the $30 million program is real.
The dealers’ commitment to the program is also real. The successful trajectories of the two cash-on-the-hood programs show that the private-public partnership between BPU and dealers continues to work well for consumers. New Jersey’s franchised new auto and truck dealers are all in on EVs and helping the state to encourage consumers to take advantage of the incentives.
For every EV that is part of an incentive dollar, New Jersey’s franchised new car and truck dealers front the money to the consumer, and then await reimbursement from the state. The program is a collaborative partnership between BPU and the 500+ franchised dealers that call New Jersey home and are committed to serving their local customers. As with any private-government program, there are growing pains that indicate room for improvement with the program’s administration. Ultimately, we all want consumers to be able to exercise their choice in New Jersey.
Yet, a consumer program is only as successful as the funding it provides. BPU estimates that approximately $35 million have been distributed just this past year to support EV purchases in this third phase, and it was STILL exhausted. Indeed, the limited funding level and unscheduled pausing of the program likely underestimate the disempowerment felt by some potential EV consumers who missed their chance to take advantage of the incentive through no fault of their own.
Evidently, BPU does recognize that consumers need help when purchasing EVs in this global economy. Supply chain delays, for example, are not the fault of consumers. A letter issued by the NJBPU Secretary’s Office has provided consumers time to accept delivery of their vehicle and complete the purchase and lease paperwork for vehicles ordered within the eligibility window (July 25, 2022, through 9:00 P.M. ET on April 17, 2023) as a way to accommodate any delays due to supply chain disruptions.
NJ CAR will continue working with BPU, the Charge Up New Jersey program administrator, the Center for Sustainable Energy (CSE), and will communicate details about the fourth phase of the program as soon as they are available. For those dealers who await their reimbursements from the third phase of the program, we encourage you to continue advising us of any process improvements that will facilitate the ongoing success of this private-public partnership.
Magdalena Padilla is NJ CAR’s Director of Government Affairs. She can be reached at mpadilla@njcar.org.
