New Jersey Incentives and Laws

Listed below are the summaries of all current New Jersey incentives, laws, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

• State Incentives (4)
• Utility/Private Incentives (2)
• Laws and Regulations (8)

State Incentives

High Occupancy Vehicle (HOV) Lane Exemption

New Jersey Turnpike Authority (NJTA) allows qualified HEVs to travel in the HOV lanes located between Interchange 11 and Interchange 14 on the New Jersey Turnpike. (Reference New Jersey Administrative Code 19:9-1.24)

Clean Vehicle Toll Incentive

The New Jersey Turnpike Authority offers a 10% discount on off-peak New Jersey Turnpike and Garden State Parkway toll rates through NJ EZ-Pass for drivers of vehicles that have a fuel economy of 45 miles per gallon or higher and meet the California Super Ultra Low Emission Vehicle standard. For more information and discount requirements, see the New Jersey Turnpike Authority Traffic Resources: Toll Rates website.

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. ZEVs are defined as vehicles certified as such by the California Air Resources Board. For a list of qualifying ZEVs, see the New Jersey Department of the Treasury website. (Reference New Jersey Statutes 54:32B-8.55)

Reduced Propane Fuel Tax

The tax imposed on liquefied petroleum gas, or propane, when used to operate a motor vehicle is equal to half the tax paid on the sale or use of gasoline. (Reference New Jersey Statutes 54:39-103)

Utility/Private Incentives

Electric Vehicle Supply Equipment (EVSE) Incentive - Coulomb Technologies

Coulomb Technologies' ChargePoint America program offers EVSE at no cost to individuals or entities in the New York City metropolitan area. To be eligible for free home charging stations, individuals living within the specified area must purchase a qualified plug-in electric vehicle. Application information is available on the ChargePoint America website. In most cases, installation will be paid for by the EVSE owner; some cities, states, and utilities, however, will provide funding towards installation costs. All participants in the ChargePoint America program must agree to anonymous data collection after installation. Additional restrictions may apply.

Natural Gas Vehicle (NGV) Technical Assistance

Public Service Electric and Gas Company will assist customers with NGV projects and provide emergency fueling access on a case-by-case basis.

Laws and Regulations

Biofuel Use Requirements

To reduce fossil fuel dependence and statewide greenhouse gas emissions, New Jersey state departments, agencies, offices, universities, and colleges must purchase biofuels for use in motor vehicles if the cost of biofuel is the same or less than the cost of gasoline or diesel, and if the fuel replacement is found reasonable. For the purpose of this regulation, a biofuel is a liquid or gaseous fuel produced from organic sources, including native noninvasive energy crops, agricultural residues, and non-recycled organic waste, such as waste cooking oil, grease, food wastes, sewage, and algae. (Reference New Jersey Statutes 52:34-6.6-6.8)

Support for Low Emission Vehicles

The New Jersey legislature urges the United States Congress and President to provide states with financial support and other incentives to promote the adoption of zero emission vehicles and partial zero emission vehicles to reduce the nation's dependence on fossil fuels and mitigate the effects of global warming and air pollution. (Reference Assembly Resolution 133 and Senate Resolution 101, 2011)

Emissions Reduction Requirements

Recognizing the impact of carbon-emitting fuels on climate change and to foster economic growth in the state by spurring technological innovation, New Jersey has established greenhouse gas (GHG) emissions 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 New Jersey 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)

Alternative Fuel Vehicle (AFV) Access to Tunnels

An AFV powered by propane or natural gas may only use Port Authority of New York and New Jersey tunnels and the lower level of the George Washington Bridge if the vehicle conforms to applicable federal regulations and industry standards, displays required markings to identify its alternative fuel system, and has a fuel capacity that does not exceed 150 pounds. For more information, see the Port Authority of New York and New Jersey Trucker's Resources website.

Low Emission Vehicle (LEV) Standards

New Jersey has adopted California motor vehicle emissions standards as set forth in Title 13 of the California Code of Regulations. Under the state's LEV program, the New Jersey Department of Environmental Protection will allow manufacturers who have sold or leased qualified LEVs after January 1, 2009, to earn and bank vehicle equivalent credits. (Reference New Jersey Administrative Code 7:27-29)

Low Emission or Alternative Fuel Bus Acquisition Requirement

All buses purchased by the New Jersey Transit Corporation (NJTC) 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 biodiesel or ultra low sulfur fuel, or vehicles operating on any other bus fuel approved by the U.S. Environmental Protection Agency. If the NJTC is unable to meet the bus purchase requirement, a report must be submitted to the New Jersey Senate and General Assembly detailing the reasons and an exemption may be granted by the state legislature.(Reference New Jersey Statutes 27:1B-22)

Idle Reduction Requirement

A gasoline-fueled motor vehicle is not allowed to operate for more than three consecutive minutes when the vehicle is not in motion, with the following exceptions: 1) a bus loading or unloading passengers; 2) a vehicle stopped in a line of traffic; 3) a vehicle being inspected by a state or federal motor vehicle inspector; 4) an emergency vehicle operating in an emergency situation; 5) a vehicle being repaired or serviced; 6) a vehicle whose primary power source is used for a mechanical operation other than propulsion; and 7) a vehicle parked in a non-residentially zoned area with a sleeper berth being used for sleeping or resting.

A diesel-fueled motor vehicle is not allowed to operate for more than three consecutive minutes when the vehicle is not in motion. If the vehicle is not in a parking space equipped with idle reduction electrification technology, the following exceptions apply: 1) a vehicle stopped in a line of traffic; 2) a vehicle whose primary power source is used for a mechanical operation other than propulsion; 3) a vehicle being inspected by a state or federal motor vehicle inspector; 4) an emergency vehicle operating in an emergency situation; 5) a vehicle being repaired or serviced; 6) a vehicle with a sleeper berth that is equipped with a Model Year 2007 or newer engine and/or a functioning diesel particulate filter; and 7) a vehicle that uses a technology designed to reduce engine idling, such as auxiliary or alternate power units, generator sets, or bunk heaters. Additionally, diesel vehicles may idle for 15 consecutive minutes when the vehicle's engine has been stopped for at least three hours if the temperature is below 25 degrees Fahrenheit, and a diesel bus loading or unloading passengers may idle for 15 consecutive minutes in a 60-minute period. Violators will be issued fines.

(Reference New Jersey Administrative Code 7:27-14.3 and 7:27-15.8)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled vehicle that is capable of achieving speeds of up to 20 miles per hour (mpg) but not more than 25 mph on a paved surface, is not powered by gas or diesel fuel, and complies with federal safety standards as noted in Title 49 of the Code of Federal Regulations, section 571.500. A low-speed vehicle may operate on roadways with posted speed of up to 25 mph, or up to 35 mph in a municipality or county that has received a special ordinance or resolution. Additional registration requirements apply. (Reference New Jersey Statutes 30:1-1 and 39:4-31)