LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
ASSEMBLY, No. 2383
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JULY 15, 2026
SUMMARY
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Synopsis: |
Requires MVC to issue special windshield stickers marking electric vehicles exempt from emission inspections. |
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Type of Impact: |
Annual increase in State expenditures. |
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Agencies Affected: |
New Jersey Motor Vehicle Commission; Department of Law and Public Safety. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
Year 1 |
Year 2 |
Year 3 |
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State Expenditure Increase |
$25,000 |
Up to $10,000 |
Up to $10,000 |
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· The Office of Legislative Services (OLS) estimates that the bill will increase annual State expenditures for the New Jersey Motor Vehicle Commission associated with the design, production, and issuance of special windshield stickers marking electric vehicles exempt from emission inspections.
· The OLS estimates a cost increase of $25,000 in the first year and a maximum of $10,000 in each of the second and third years. The cost will be the highest in year one when presumably all existing electric vehicles will receive a sticker. Thereafter, the commission will only issue windshield stickers to newly registered electric vehicles.
· The OLS notes that the Department of Law and Public Safety may experience an increase in administrative costs associated with the role of the Division of Highway Traffic Safety in designing the windshield sticker. However, it is anticipated that the department may be able to absorb the costs within existing department resources.
BILL DESCRIPTION
This bill requires the commission to issue special windshield stickers free-of-charge for electric vehicles that are registered in New Jersey to indicate that the vehicles are exempt from emission inspections beginning a year after the bill’s date of enactment. The bill defines “electric vehicle” to mean any vehicle powered solely by electric without an on-board engine or generator, which does not use a hydrocarbon fuel to create electricity. “Electric vehicle” includes plug-in electric vehicles, as that term is defined in current statute. However, the bill clarifies that the provisions of the bill do not apply to plug-in hybrid electric vehicles.
The bill requires the commission, in consultation with the division, to design the windshield stickers. The windshield stickers are to be issued free of charge.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates that the bill will increase annual State expenditures from the design, production, and issuance of special windshield stickers for electric vehicles. The OLS estimates a cost increase of $25,000 in the first year and a maximum of $10,000 in each of the second and third years. The cost will be the highest in year one when presumably all existing electric vehicles will receive a sticker. Thereafter, the commission will only issue windshield stickers to newly registered electric vehicles.
In arriving at these cost projections, the OLS assumes that the commission will be able to design, produce, and issue special windshield stickers at a cost of $0.05 to $0.10 per sticker. This range is informed by the current Pennsylvania Department of Transportation contract for motor vehicle inspection stickers.
The demand assumptions, in turn, are based on New Jersey electric vehicle registration trends. Notably, the OLS assumes that in the first year, about 327,000 stickers will be needed. This number is the sum of the approximately 207,000 electric vehicles that were registered in New Jersey as of December 31, 2025, plus an estimated 120,000 additional registrations prior to the bill taking effect. At a per-sticker cost of $0.05 to $0.10, the first-year cost will therefore range from $16,350 to $32,700.
For the second and third year, the OLS estimates that the annual number of stickers needed will not exceed 100,000. If so, then the cost in each of the second and third effective years will range from $5,000 to $10,000, assuming a per-sticker cost of $0.05 to $0.10.
The OLS notes that the department may experience an
increase in administrative costs associated with the division’s role in
designing the windshield sticker. However, it is anticipated that the
department may be able to absorb the costs within existing department resources
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New Jersey Plug-In Electric Vehicle Registrations |
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Calendar Year |
Total Registrations |
Unit Increase |
% Increase |
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2017 |
8,048 |
3,682 |
84% |
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2018 |
11,670 |
3,622 |
45% |
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2019 |
18,498 |
6,828 |
59% |
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2020 |
28,869 |
10,371 |
56% |
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2021 |
46,453 |
17,584 |
61% |
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2022 |
68,414 |
21,961 |
47% |
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2023 |
118,536 |
50,122 |
73% |
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2024 |
168,586 |
50,050 |
42% |
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2025 |
206,271 |
37,685 |
22% |
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Section: |
Authorities, Utilities, Transportation and Communications |
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Analyst: |
Associate Fiscal Analyst |
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Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).