WHEREAS, the New Jersey Legislature recently amended the New Jersey Transportation Trust Fund Authority Act to impose an annual fee of $250 on zero emission vehicles (ZEVs), with an annual increase of $10 until reaching $290. This flat fee, which applies only to 100% ZEV vehicles and does not apply to plug-in hybrids or traditional hybrid vehicles, is levied at the time of annual registration and requires new or leased ZEVs to pay the first four years upfront and;
WHEREAS, while intended to replace the revenue lost from the gas tax, this policy is problematic due to its inequity and lack of consideration for vehicle weight, mileage, and socio-economic factors, and;
WHEREAS, analysis reveals that the flat fee is not proportional to the actual wear and tear on road infrastructure, as it treats all vehicles equally regardless of their impact, and;
WHEREAS, the fee is significantly higher than what typical gasoline vehicle owners contribute annually through gas taxes, and;
WHEREAS, low-income families may face financial hardships due to the lump-sum payment, and out-of-state drivers are exempt, leading to an uneven distribution of road maintenance costs, and;
WHEREAS, compared to a flat fee, per-kilowatt-hour (kWh) fees at charging stations is a more equitable alternative and;
WHEREAS, based on the analysis of the Sierra Club New Jersey Chapter’s Transportation Committee, transitioning to a per-kWh fee would create a more equitable and effective ZEV fee policy in New Jersey, aligning with the state's goals of sustainable transportation and infrastructure maintenance.
NOW THEREFORE, BE IT RESOLVED, the Sierra Club New Jersey Chapter supports New Jersey adopting a per-kWh charge processed by public and municipal utility companies as the most effective and equitable approach to raise funds from zero emission vehicles to help maintain the state’s roadways.
BE IT FURTHER RESOLVED, the Chapter will take a leadership role on this issue and provide testimony, studies, educational presentations and/or related documents to adopt a statewide per-kWh charge in New Jersey.
Signed,
_____________________
Richard Isaac
Chapter Chair
February 8, 2025