New Jersey Biodiesel Laws and Incentives

State Incentives

Biodiesel Fuel Use Rebate

New Jersey's Biodiesel Fuel Rebate Program, administered by the Board of Public Utilities, has funding available on a first come, first served basis to reimburse eligible local governments, state colleges and universities, school districts, and governmental authorities for the incremental costs of using biodiesel fuel to operate their vehicles in lieu of petroleum diesel.

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 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.(Reference New Jersey Statutes 27:1B-22)