New Jersey Incentives and Laws
Last Updated November 2007
New Jersey is the home of the New Jersey Clean Cities Coalition. Coordinator contact information is listed in the Points of Contact section.
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 |
Point of Contact
John Zarzycki
Interim Clean Cities Coordinator
New Jersey Clean Cities Coalition
Phone (973) 648-4967
john.zarzycki@bpu.state.nj.us
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.
Point of Contact
John Zarzycki
Interim Clean Cities Coordinator
New Jersey Clean Cities Coalition
Phone (973) 648-4967
john.zarzycki@bpu.state.nj.us
Alternative Fuel Infrastructure Rebate
The Local Government Alternative Fuel Infrastructure Program currently has funding available to reimburse eligible local governments, state colleges and universities, school districts, and governmental authorities for 50% of the cost of purchasing and installing refueling infrastructure for alternative fuels. Up to $50,000 is available per applicant. Eligible fuels include natural gas, propane, electricity, ethanol (E85) and hydrogen.
Point of Contact
John Zarzycki
Interim Clean Cities Coordinator
New Jersey Clean Cities Coalition
Phone (973) 648-4967
john.zarzycki@bpu.state.nj.us
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.
Zero Emissions Vehicle (ZEV) Tax Exemption
ZEVs sold, rented, or leased in New Jersey are exempt from state sales and use tax. This exemption is not applicable to partial zero emission vehicles, including hybrid electric vehicles. For a list of qualifying ZEVs, see the New Jersey Department of the Treasury Web site. (Reference New Jersey Statutes 54:32B-8.55)
Idle Reduction Technology Grant
The New Jersey Trucker's Challenge, established by the New Jersey Department of Environmental Protection, provides funding for the purchase or installation of idle reduction equipment used in New Jersey-based heavy-duty diesel trucks. Eligible equipment includes auxiliary power units (APUs), bunk heaters and tailpipe emissions controls such as diesel particulate filters (DPF) and diesel oxidation catalysts (DOC). The reimbursement amounts may include the purchase and installation costs and are as follows:
| Device(s) | Cost Coverage | Funding Ceiling |
|---|---|---|
| APU | 50% | $4,500 |
| Bunk Heater | 50% | $750 |
| DPF or DOC and APU or Bunk Heater | 100% of APU or bunk heater | $17,000 for DPF or DOC |
The initial funding for this program was provided by the State of New Jersey and the U.S. Environmental Protection Agency. The program is administered by the New Jersey Motor Truck Association (NJMTA). For more information on the Trucker's Challenge, see the NJMTA Web site.
Point of Contact
Gail Toth
New Jersey Trucker's Challenge
New Jersey Motor Truck Association
Phone (732) 254-5000
Fax (732) 613-1745
gtoth@njmta.org
http://www.njmta.org/
State Laws and Regulations
Emissions Reduction Requirements
Recognizing the impact of carbon-emitting fuels on climate change and in order to foster economic growth in the state by spurring technological innovation, New Jersey has established greenhouse gas emissions (GHG) reduction targets. These targets include stabilization of GHG emissions to 1990 levels by the year 2020 and reduction of GHG emissions to 80% below 2006 levels by 2050. To reach this goal, the Director of Energy Savings in the Department of Treasury will develop specific targets and strategies for reducing GHG emissions by reducing the state motor fleet's fuel consumption. (Reference Executive Order 54, 2007)
Low Emission Vehicle (LEV) Sales Requirement
Beginning January 1, 2009, New Jersey will implement the California Low Emission Vehicle program. Upon implementation, the state will require automakers that sell vehicles in New Jersey to make at least 40,000 hybrid electric vehicles (HEVs) and 128,000 LEVs available for sale or lease for each model year. The Department of Environmental Protection will issue credits to manufacturers who have sold or leased HEVs and LEVs between 1999 and 2009. Reference New Jersey Statutes 26:2C-8.15 to 8.21).
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)
Reduced Alternative Fuels Tax
The tax paid upon the sale and use of liquefied petroleum gas and compressed natural gas when used as transportation fuel is equal to half the tax paid for gasoline and diesel. (Reference New Jersey Statutes 54:39-27.1)
Idle Reduction Requirement
A diesel powered motor vehicle may not be allowed to operate for more than three consecutive minutes when the vehicle is not in motion, with the following exceptions: 1) a motor vehicle at the place of business where the vehicle is permanently assigned may idle for 30 consecutive minutes; and 2) a motor vehicle may idle for 15 consecutive minutes when the vehicle's engine has been stopped for at least three hours. Beginning May 8, 2008, a vehicle may not idle for more than three minutes in parking spaces that are equipped with idle-reduction electrification devices. Beginning May 1, 2010, diesel trucks may not idle overnight. These provisions do not apply to the following: 1) a light-duty diesel vehicle; 2) a diesel bus while loading or unloading; 3) a vehicle stopped in a line of traffic; 4) a vehicle being inspected by a state or federal motor vehicle inspector; 5) an emergency vehicle in an emergency situation; 6) a vehicle being repaired or serviced; or 7) a vehicle needing auxiliary power for equipment or for climate control. Violators will be issued fines ranging from $100 to $200 for the first offense, and up to $3,000 for repeated offenses. (Reference New Jersey Administrative Code 7:27-14.2 and 37:3-70.2)
Utilities/Private Incentives
Natural Gas Vehicle (NGV) Technical Assistance
Public Service Electric and Gas Company will assist customers with NGV projects and provide emergency refueling access on a case-by-case basis.
Point of Contact
Dick Duffy
Gas Products Manager
Public Service Electric and Gas Company
Phone (973) 430-7664
Fax (973) 353-9225
richard.duffy@pseg.com
Points of Contact:
| NAME/EMAIL | AGENCY | TITLE | PHONE/FAX |
|---|---|---|---|
| John Zarzycki john.zarzycki@bpu.state.nj.us | New Jersey Clean Cities Coalition | Interim Clean Cities Coordinator | Phone: (973) 648-4967 Fax: | Mike Scarpino michael.scarpino@netl.doe.gov | U.S. Department of Energy, National Energy Technology Laboratory | Project Manager | Phone: (412) 386-4726 Fax: (412) 386-5835 | Gail Toth gtoth@njmta.org | New Jersey Motor Truck Association | New Jersey Trucker's Challenge | Phone: (732) 254-5000 Fax: (732) 613-1745 | Dick Duffy richard.duffy@pseg.com | Public Service Electric and Gas Company | Gas Products Manager | Phone: (973) 430-7664 Fax: (973) 353-9225 | Matthew Laurita laurita.matthew@epa.gov | U.S. Environmental Protection Agency | Environmental Engineer, Region 2 | Phone: (212) 637- 3895 Fax: (212) 637-3901 |
