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State and Federal Incentives and Laws

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New Jersey Fleet Purchaser/Manager

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV)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 gross vehicle weight rating (GVWR) and whether the vehicle is dedicated or bi-fuel. HEVs may 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.

GVWR
(in pounds)
Rebate Amount
(dedicated or hybrid)
Rebate Amount
(bi-fuel)
Light-duty (<8,500)Up to $4,000Up to $2,000
Medium-duty (8,500-14,000)Up to $7,000Up to $4,000
Heavy-duty (>14,000)Up to $12,000Up to $6,000

Point of Contact

John Zarzycki
Project Manager
New Jersey Board of Public Utilities, Office of Clean Energy
Phone (973) 648-4967
john.zarzycki@bpu.state.nj.us

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.

Point of Contact

John Zarzycki
Project Manager
New Jersey Board of Public Utilities, Office of Clean Energy
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 CoverageFunding Ceiling
APU50%$4,500
Bunk Heater50%$750
DPF or DOC
and
APU or Bunk Heater
100% of APU
or Bunk Heater
$17,000
for DPF or DOC

The program is administered by the New Jersey Motor Truck Association (NJMTA). The initial funding for this program was provided by the State of New Jersey and the U.S. Environmental Protection Agency and has been fully allocated. Additional funding for the program is currently pending. 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/

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 (GHG) emission 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 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)

Idle Reduction Requirement

A 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. Additionally, 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 passengers; 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 operating in an emergency situation; 6) a vehicle being repaired or serviced; or 7) a vehicle needing auxiliary power for equipment or for climate control. Additional restriction or conditions may apply. 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 7:27-14.3 and 7:27-15.8)

Low-Speed Vehicle (LSV) Access to Roadways

A LSV is defined as a four-wheeled vehicle capable of achieving speeds of up to 20 miles per hour (mpg) but not more than 25 mph on a paved surface. An LSV cannot be powered by gas or diesel fuel and must comply with federal safety standards as noted in Title 49 of the Code of Federal Regulations, part 571.500. LSVs may not operate on roadways with posted speed limits greater than 25 mph, or greater than 35 mph if deemed appropriate by a municipality or the New Jersey Department of Transportation. Additional registration requirements apply. (Reference New Jersey Statutes 39:4-31)

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.

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