Skip Navigation to main content U.S. Department of Energy Energy Efficiency and Renewable Energy
Alternative Fuels & Advanced Vehicles Data Center
About the AFDCFuelsVehiclesFleetsIncentives and LawsData, Analysis and TrendsInformation ResourcesHome
Alternative and Advanced Fuels

New Jersey Incentives and Laws for Ethanol

The list below contains summaries of all New Jersey incentives and laws related to Ethanol.

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)

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)