Gov. Wes Moore issued an executive order Friday that would allow his administration to punt fines on car companies that fall short of Maryland’s electric vehicle mandates, acknowledging that EV sales remain well short of state ambitions.

The governor’s directive came as legislation to similar effect has worked its way through the General Assembly but met intense opposition from climate advocates. The bill faces a looming deadline with the end of session on Monday.

The order expands the powers of the Maryland Department of the Environment “to ease compliance” with the EV rule and to defer the first two years of penalties, set to begin in fall 2026. The Moore administration adopted this penalty structure two years ago as part of a plan to phase out gas-powered cars, whose emissions are a major contributor to climate change.

The car industry has warned lawmakers this session that if Maryland doesn’t give them more breathing room they will send fewer cars to dealerships, driving business out of state.

The Moore administration “remains committed to successful implementation of the State’s clean car and truck programs,” the order states, but recognizes that “temporary short-term measures are necessary to ensure the programs’ long-term success.”

Climate advocates have pushed against the legislative version of the policy. Proponents of the national program, part of the California-led Clean Cars II emissions standards, have argued that regulators have numerous ways to allow leniency on EV sales thresholds without undermining a national program seen as critical to the electric transition.

If Maryland enacts legislation to delay penalties, advocates have argued, it would deal a severe blow to the national coalition of 13 states aiming to phase out sales of new gas-powered cars.

Moore’s executive order allows environmental regulators to withhold penalties in the first two years of the program, making an exception only if manufacturers controlling at least 40% of the Maryland market voluntarily agree to penalties.

Under the Maryland standards, 43% of new cars that roll off dealership lots need to be electric by the fall of 2026 or auto manufacturers could face fines. That threshold gets higher in each subsequent year until 2035, when sales of new cars with gas-powered engines would be banned.

Car sales in Maryland remain far short of targeted levels. Barely 13% of new car sales in Maryland were electric last year.

In the early years of enforcement, car companies that don’t achieve these sales thresholds can remain in compliance by purchasing carbon credits, flexibility that advocates argue allows ample time for the electric vehicle market to grow and for manufacturers to avoid fines.

Combinations of sales and carbon credits could bring the target threshold for the first year of penalties down from 43% to 19%, according to figures shared by the Maryland Department of the Environment earlier in the legislative session. Even so, the state’s 13% sales rate is skewed heavily toward Tesla, the most popular EV on Maryland roads.

Peter Kitzmiller, president of the Maryland Automobile Dealers Association, said manufacturers remain committed to putting more electric cars on the road, but he commended the governor for recognizing the headwinds facing the industry.

The combination of President Donald Trump’s sweeping tariffs on car imports, depleted funding for charging stations and threats to the federal EV tax credit only make the short-term sales goals more far-fetched, Kitzmiller said.

Until getting a call about the executive order from Moore’s office Thursday night, Kitzmiller said he had been focused on legislative remedies. The legislative version of the policy, introduced late by Baltimore County Del. Dana Stein, has advanced in the last two weeks and received preliminary approval from the House of Delegates earlier in the day Friday.

Responses to Moore’s move from Maryland climate advocates ranged from disappointment to praise.

The Maryland League of Conservation Voters welcomed the decision for prioritizing the state’s climate goals even in the face of an uncertain market for electric cars. The group also thanked Moore for a provision that creates a working group — with representatives from the state, industry and environmental groups — charged with developing policy recommendations for the Clean Cars program by the end of the year.

“Communities across Maryland, particularly those historically overburdened by transportation pollution, will benefit from this thoughtful approach,” said Kim Coble, executive director for the League of Conservation Voters. “This executive order ensures we continue moving forward with reducing harmful emissions from our transportation sector while creating a process that considers the needs of all Marylanders.”

Others were critical.

Josh Tulkin, director of the Maryland chapter of the Sierra club, said his organization supports “a range of compliance flexibilities” and is disappointed in Moore’s decision.

“This premature action risks removing all the teeth from the programs and rewarding the laggards in the industry,” said Tulkin. “Delaying our clean vehicle programs would stall progress on cutting harmful air pollution. We call on Governor Moore to continue implementing these life-saving programs without delay.”