New Jersey Biodiesel Laws and Incentives
State Incentives
Alternative Fuel Vehicle (AFV) Rebate
New Jersey's AFV Rebate Program offers rebates to local government entities that convert vehicles to operate on alternative fuels or purchase original equipment manufacturer (OEM) AFVs. The rebate amounts, shown in the table below, can be used to cover the cost of converting a vehicle to operate on an alternative fuel or to cover the incremental cost of purchasing an OEM AFV, and vary according to the vehicle weight class and whether the vehicle is dedicated or bi-fuel. Hybrid electric vehicles (HEVs) also qualify for the rebates. Eligible entities include local governments, state colleges and universities, school districts, and governmental authorities. The initial funding for this program was provided by a federal Congestion Mitigation and Air Quality (CMAQ) Improvement Program grant.
| Vehicle Weight (in pounds) | Rebate Amount (dedicated or hybrid) | Rebate Amount (bi-fuel) |
|---|---|---|
| Light-duty (<8,500) | Up to $4,000 | Up to $2,000 |
| Medium-duty (8,500-14,000) | Up to $7,000 | Up to $4,000 |
| Heavy-duty (>14,000) | Up to $12,000 | Up to $6,000 |
Biodiesel Fuel Use Rebate
The Local Government Biodiesel Rebate Program currently has funding available to reimburse eligible local governments, state colleges and universities, school districts, and governmental authorities for the incremental costs of using biodiesel fuel in lieu of petroleum diesel.
Starting at the end of 2006, the Local Government Biodiesel Rebate Program will reimburse farmers for the incremental cost of using biodiesel fuel in their vehicles or for using a 5% blend of biodiesel in lieu of 100% petroleum heating oil.
High Occupancy Vehicle (HOV) Lane Exemption
New Jersey Turnpike Authority (NJTA) allows hybrid electric vehicles (HEVs) and alternative fuel vehicles (AFVs) to travel in the HOV lanes on the New Jersey Turnpike. Permitted AFVs must operate on electricity, methanol, ethanol, natural gas, liquefied petroleum gas, hydrogen, coal derived liquid fuels, or fuels derived from biological materials. Any other federally approved AFVs are also permitted to utilize the NJTA's HOV lanes. For a complete list of eligible HEVs see the New Jersey Turnpike Authority Web site.
State Laws and Regulations
Low Emissions or Alternative Fuel Bus Acquisition Requirement
Beginning July 1, 2007, all buses purchased by the New Jersey Transit Corporation must be 1) equipped with improved pollution controls that reduce particulate emissions or 2) powered by a fuel other than conventional diesel. Qualifying vehicles include compressed natural gas vehicles, hybrid electric vehicles, fuel cell vehicles, vehicles operating on ultra low sulfur fuel or biodiesel, or vehicles operating on any other bus fuel approved by the U.S. Environmental Protection Agency. (Reference New Jersey Statutes 27:1B-22)
