Alternative Fuel Stations in New Jersey

Tax incentives and/or other rebates, credits, incentives or related initiaves for drivers of alternative fuel vehicles or for other uses of alternative fuel in New Jersey.

Reduced Propane Fuel Tax

The tax imposed on propane used to operate a motor vehicle is equal to half the tax paid on the sale or use of gasoline, or $0.0525 per gallon. (Reference New Jersey Statutes 54:39-103)

Zero Emissions Vehicle (ZEV) Tax Exemption

ZEVs sold, rented, or leased in New Jersey are exempt from state sales and use tax. This exemption does not apply to partial ZEVs, including hybrid electric vehicles. ZEVs are defined as vehicles that meet California Air Resources Board zero emission standards for that model year. For a list of qualified ZEV, see the New Jersey Department of the Treasury ZEV Sales Tax Exemption website. (Reference New Jersey Statutes 54:32B-8.55)

High Occupancy Vehicle (HOV) Lane Exemption

New Jersey Turnpike Authority (Authority) allows qualified plug-in electric vehicles to travel in the HOV lanes located between Interchange 11 and Interchange 14 on the New Jersey Turnpike. For more information, see the Authority Travel Tools website. (Reference 49 New Jersey Register 3236(b) and New Jersey Administrative Code 19:9-1.24)

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 (mph) 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 U.S. 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 and other requirements apply. (Reference New Jersey Statutes 39:4-31.1 through 39:4-31.2)

Alternative Fuel Vehicle (AFV) Access to Tunnels

An AFV powered by propane or natural gas may only use Port Authority of New York & New Jersey (PANYNJ) 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.

An AFV powered by propane or natural gas may only use the Brigantine Connector Tunnel if the vehicle has a dedicated alternate fuel system installed by the manufacturer of the vehicle or a fuel system that has been properly converted to an alternate fuel system, conforms to applicable federal regulations and industry standards, has a fuel capacity that does not exceed 100 gasoline gallon equivalents, and displays all proper markings and symbols.

For more information, see the PANYNJ Trucker's Resources website and the South Jersey Transportation Authority Rules and Regulations website.

(Reference New Jersey Administrative Code 19:2-4.3)

Clean Truck Port Requirements

Port drayage trucks must meet or exceed Model Year 2010 engine federal emissions standards to access the Port Authority of New York & New Jersey (PANYNJ) marine terminals. Drayage trucks operating on liquefied or compressed natural gas, electricity, or hybrid electric technology are exempt from these requirements. For purposes of this rule, drayage trucks are defined as on-road vehicles with a gross vehicle weight rating of 33,001 pounds or greater and intended to load, unload, or transport cargo from PANYNJ terminals. Additional rules apply. For more information, see the PANYNJ website.

Plug-In Electric Vehicle Toll Discount Program

New Jersey Turnpike Authority's Green Pass Discount Plan provides a 10% discount on off-peak New Jersey Turnpike and Garden State Parkway toll rates 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. Vehicles must register with New Jersey E-ZPass. For more information, including application instructions, see the E-ZPass Discount Programs website.

Electric Vehicle Supply Equipment (EVSE) Grants

The New Jersey Department of Environmental Protection provides grants through the It Pay$ to Plug In: New Jersey's Electric Vehicle Workplace Charging Grant Program (Program) to support plug-in electric vehicle adoption and EVSE installation. Reimbursement grants are offered on a first-come, first-served basis for the cost and installation of eligible EVSE at workplaces, government and educational facilities, non-profits, and multi-unit dwellings.

The Program is part of New Jersey's Energy Master Plan. For more information, including application and eligibility requirements, visit the Drive Green NJ Charging Challenge website.

Natural Gas Vehicle (NGV) Weight Exemption

A NGV may exceed the state's gross vehicle weight limits by a weight equal to the difference between the weight of the vehicle with the natural gas tank and fueling system and the weight of a comparable vehicle with a diesel tank and fueling system. The NGV maximum gross weight may not exceed 82,000 pounds. (Reference New Jersey Statutes 39:3-84.1)

Plug-In Electric Vehicle (PEV) and Electric Vehicle Supply Equipment (EVSE) Deployment Goals

The State of New Jersey will work to increase the number of PEVs and related infrastructure to meet the following state goals:

• 10% of new buses purchased by the New Jersey Transit Corporation must be zero emission vehicles (ZEV) by December 31, 2024. Then 50% of new buses must be ZEV by December 31, 2026, and 100% must be ZEV by December 31, 2032.
• By December 31, 2025, there must be 400 direct current (DC) fast EVSE and 1,000 Level 2 EVSE installed and available for public use at minimally 200 locations. 75 locations must include at least two DC fast installed along travel corridors, while 100 locations must include at least two DC fast in community locations. Additionally, 15% of all multi-family residential properties must include EVSE infrastructure and 20% of all franchised overnight lodging must have EVSE available for guests.
• By December 31, 2035, there will be 2 million registered light-duty PEVs in the state, and 100% of state-owned, non-emergency light-duty vehicles must be PEVs.
• By December 31, 2040, 85% of all new light-duty vehicles sold in the state will be PEVs.

The New Jersey Board of Public Utilities (NJBPU) must establish goals for transportation electrification and infrastructure development for medium- and heavy-duty on-road diesel vehicles and charging infrastructure by December 31, 2020. For more information, see the NJBPU Electric Vehicle Incentive Programs website.

The New Jersey Department of Environmental Protection (NJDEP) develops and implements a public education program regarding the availability and benefits of PEVs, state PEV goals, and the availability of PEV and EVSE incentives.

NJDEP and NJBPU must prepare and submit a report to the governor and legislature every five years on the state of the PEV market in New Jersey, progress towards achieving the above goals, barriers to the achievement of the goals, and recommendations for legislative or regulatory action to address barriers.

(Reference New Jersey Statutes 48:25-3)