"Mandate vs. Market": Lawmaker Warns of Consumer Costs and Market Disruption, Calls for EV Mandate Repeal

Delaware House of Representatives

April 25, 2025

Citing numerous recent developments, one Delaware lawmaker is renewing his call to repeal Delaware’s zero-emission vehicles (ZEVs) sales mandate.

A year from this fall, 43% of new cars and trucks sent from manufacturers to dealerships in Delaware will be required to be zero-emission vehicles (ZEVs), primarily electric vehicles. The percentage will increase annually, reaching 82% by 2032.

The controversial sales mandate is the result of state regulations adopted in November 2023, despite massive public opposition. Of the 4,426 individual public comments submitted to the Department of Natural Resources and Environmental Control (DNREC) as part of the promulgation process, more than 94% opposed the restriction on selling new fuel-powered vehicles.

The same attitudes have been reflected in ZEV sales. According to the U.S. Department of Energy’s most recent data (December 31, 2023), 35,100 electric, plug-in hybrid electric, and hybrid electric cars, trucks, and SUVs were registered in Delaware. At the same time, 805,500 gasoline and diesel light-duty vehicles were registered in the First State.

“Even making the very generous assumption that ZEV ownership has doubled over the last 16 months, such vehicles would still only constitute less than 10% of all cars, trucks, and SUVs owned by Delawareans,” said State Rep. Lyndon Yearick (R-Camden, Wyoming, Woodside). “Yet, just 16 months from now, more than four of every 10 vehicles sent to Delaware dealerships will be required to be ZEVs. This regulation represents a fundamental disconnect between what consumers want and the wishful thinking of environmental officials and state legislators.”

The ZEV mandate poses a looming threat to the financial viability of Delaware’s car dealers, as well as what Delawareans will be able to purchase on dealers’ lots, and how much they’ll pay.

New car dealers do not typically own their inventories. They belong to a finance company. The dealer borrows money through a mechanism called "floor plan financing" to keep the inventory on their lots, paying interest on the loans. The longer a car sits on the lot, the more money the dealers pay and the more it undercuts their potential profit.

A statement published this week by the National Automotive Dealers Association criticized California’s Advanced Clean Cars II rule, to which the ZEV sales mandate in Delaware and other states is linked. “No legacy automaker, in California or any of the eleven states that have adopted California’s ZEV mandate, is on track to meet this mandate for Model Year 2026 or 2027. California’s ZEV mandate will soon start distorting the vehicle market.

To comply with the mandate, auto-makers will need to either sell more ZEVs or sell fewer gas cars in these states…For context, EV sales are currently 7.5% of sales nationally.” The dealers' organization also noted: “The average transaction price for an EV is $59,205 vs. $47,462 for the average new internal combustion engine vehicle. This price difference, coupled with inadequate charging infrastructure…and long charging times…have created market impediments which make compliance with this rule impossible.” There are some signs that officials in ZEV sales mandate states are starting to grudgingly recognize the problem.

Earlier this month, Maryland Governor Wes Moore issued an executive order authorizing the Maryland Department of the Environment to suspend enforcement against dealerships that do not meet ZEV mandates in Model Years 2027 and 2028. The governor cited concerns by car manufacturers and the potential loss of federal funding as reasons for his action.

Greg Patterson, the new secretary of the Delaware Department of Natural Resources and Environmental Control, said at a recent forum sponsored by Spotlight Delaware that the landscape for buying electric cars is changing, also noting doubts about the availability of future federal funds for EV rebates and the installation of charging infrastructure. Rep. Yearick is the prime sponsor of House Bill 92, a measure seeking to eliminate the EV mandate.

Earlier this month, Democrats controlling the House Natural Resources & Energy Committee refused to allow the bill to advance.

“Electric vehicles have a place in our future, and for some families and businesses, they are a worthwhile alternative,” Rep. Yearick said. “However, too many of our state lawmakers and leaders have decided that Delawareans can’t be trusted to make their own decisions. “My legislation is sponsored by about a third of the state legislature," he said. "Given the undeniable facts that have come to light, I am calling for this measure to be revisited, released from committee, and enacted. We shouldn’t be forcing people into cars they don’t want to drive, making them reach deeper into their pockets to do it, and then raising their taxes to build out the supporting charging network. Let’s restore some faith in the people we represent by returning their freedom of choice.”