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Home » Commercial & Industrial » Programs » Alternative Fuels

Biodiesel Fuel Rebate Program

New Jersey's Biodiesel Fuel Rebate Program is administered by the Board of Public Utilities (BPU), Office of Clean Energy and is funded by $500,000 in Petroleum Overcharge Reimbursement Fund (PORF) money. These funds are the result of settlements of lawsuits with the major oil companies dating to the energy crises of the mid-1970's. Since biodiesel fuel can be used in standard diesel vehicles, there are no incremental vehicle costs associated with its use. There are, however, incremental fuel costs, as biodiesel fuel is currently more costly than petroleum diesel. This program is designed to provide assistance with the incremental fuel costs associated with using biodiesel fuel, in lieu of petroleum diesel.

Download Program Overview Brochure

What is biodiesel and its advantages?
Biodiesel is a diesel fuel substitute made from a renewable, organic source. The most commonly used feedstock is soybean oil; however, other vegetable oils can also be used to produce biodiesel. Biodiesel can be used in existing diesel engines without the need for conversions or modifications.

Who is eligible to apply for the Biodiesel Fuel Rebate Program?

  1. Municipalities
  2. Counties
  3. Boards of Education
  4. State Colleges and Universities
  5. Governmental authorities
  6. Other local government agencies

How do I apply?
Complete the attached application form and mail to: 

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

 Application Form

How does the Rebate Program work?

  1. Eligible applicants should first contact the Board of Public Utilities, Office of Clean Energy about participating in the Rebate Program and complete a program application.
  2. The applicant and the BPU will enter into a Memorandum of Understanding (MOU) outlining the terms of the agreement.
  3. Approved participants purchase biodiesel fuel for use in their diesel-powered vehicles.
  4. Participants are reimbursed for the incremental cost of using biodiesel, in lieu of 100% petroleum diesel
  5. Example: A municipality purchases 10,000 gallons of B20 at $1.25 per gallon instead of 100% petroleum diesel at $1.00 per gallon. The rebate amount will be: 10,000 gal. x ($1.25-$1.00) = $2,500

Rebate applications will be evaluated on a first-come, first-served basis.

Who can I contact for more information?
For more information, contact: 

John Zarzycki, Project Manager, 973-648-4967