Compliance Summary
Compliance Summary Tool
Transportation Modes
Service Functions
All Topics
Please note: This summary is provided to help you understand the regulations. Consult the references provided for links to the full text of the regulations.

Alternative Fuels -- State Regulations for New Jersey

This page contains selected data from the Alternative Fuels Data Center (AFDC) at the U. S. Department of Energy. Additional details and the latest updates may be found at the AFDC summary page for New Jersey.

Fuel Use

State agency vehicles

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)

Tax Exemption (zero emission vehicles)

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)

Tax Reduction (propane used as vehicle fuel)

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)

Traffic Restriction (alternative fuel vehicles)

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.