New Jersey's Alternative Fuel Vehicle Rebate Program is funded by $500,000 in Congestion Mitigation and Air Quality Improvement (CMAQ) funding. This program is modeled on a rebate program funded by the U.S. Department of Energy (DOE) that was geared toward Clean Cities Program Stakeholders in North Jersey, Delaware, and the City of Philadelphia. The intent of this program is to encourage the acquisition of alternative fuel vehicles (AFVs) by local government entities throughout the State of New Jersey.

Download the Program Overview Brochure

What are Alternative Fuels and why are they important?

Alternative fuels are generally cleaner burning than traditional fuels such as gasoline and diesel.
The federal Energy Policy Act (EPAct) requires State and Federal fleets and fuel provider fleets (such as gas and electric utilities) to purchase AFVs. New U.S. Department of Energy rules may extend these mandates to local government fleets as well.
AFVs are a part of the New Jersey Department of Environmental Protection’s clean air strategy, approved by the U.S. Environmental Protection Agency.
By using alternative fuels, you’ll be helping to reduce our country’s reliance on imported oil and help improve our air quality.

Which vehicles qualify?

Dedicated AFVs, or vehicles that are capable of operating only on an alternative fuel
Bi-fuel AFVs, or vehicles that can operate on an alternative fuel or a traditional fuel like gasoline, at the flip of a switch.
Hybrid-electric vehicles, which combine an electric motor with a separate gaseous or liquid fuel engine.
AFVs purchased after July 1, 2002 are eligible for the AFV Rebate Program.

How much are the rebates? The incremental costs of purchasing one or more AFVs, instead of gasoline or diesel-powered vehicles, or converting vehicles to operate using alternative fuel, are eligible for rebates, as follows:

Light Duty Vehicles (under 8,500 lbs.)

Up to $4,000 toward the incremental cost of a dedicated AFV or hybrid-electric vehicle

Up to $2,000 toward the incremental cost of a bi-fuel AFV

Medium Duty Vehicles (8,500-14,000 lbs.)

Up to $7,000 toward the incremental cost of a dedicated AFV or hybrid-electric vehicle

Up to $4,000 toward the incremental cost of a bi-fuel AFV

Heavy Duty Vehicles (over 14,000 lbs.)

Up to $12,000 toward the incremental cost of a dedicated AFV or hybrid-electric vehicle

Up to $6,000 toward the incremental cost of a bi-fuel AFV

 

Rebate applications will be evaluated on a first-come, first-served basis. Rebates will be awarded based on funding availability.

How do I apply?
Complete the application form (click on the link below) and mail to: 

John Zarzycki, Project Manager
NJBPU, Office of Clean Energy
Two Gateway Center
Newark, NJ 07102

Program Guidelines & Application (PDF)

NJ Payment Voucher (PDF)

AFR Form (PDF)

Who can I contact for more information?
For more information on the AFV Rebate Program, contact: 

John Zarzycki, Project Manager, 973-648-4967