New Jersey expands zero-emission incentive program; includes heavy-duty trucks

July 22, 2022

Ryan Witkowski

|

A New Jersey program designed to offer small businesses incentives for purchasing new zero-emission vehicles will soon be shifting into phase two.

On July 19, the New Jersey Economic Development Authority announced the approval of $45 million in funding for the expansion of the New Jersey Zero Emission Incentive Program. The additional funds – which double the amount already dedicated to the program – come from the state’s Regional Greenhouse Gas Initiative allocation.

On top of the increased funding, the NJEDA Board approved two major changes to the program. Eligibility for the incentive program in phase two will be available statewide – expanding beyond the four pilot communities in the first phase. Additionally, eligibility in phase two will be expanded to include heavy-duty vehicle classes.

According to the NJEDA, as of last month 144 NJ ZIP applications had been approved totaling $32.2 million in vouchers for zero-emission medium-duty vehicles. Of the entities approved so far, over 90% are small businesses. Additionally, approximately 57% are businesses that are minority- and/or woman-owned.

The authority anticipates an additional 200 to 400 vouchers to be awarded because of the program’s expansion. Currently, NJ ZIP applications are being moved to a waitlist. The NJEDA anticipates opening applications, including those for businesses in newly eligible parts of the state, in the coming months.

Tim Sullivan, NJEDA CEO, said the incentive program is an excellent opportunity for small businesses and can be mutually beneficial for the state.

“Over 40% of New Jersey’s carbon emissions are produced by vehicles, so helping small businesses make the transition to zero-emission technology is a key step toward accelerating Gov. Phil Murphy’s efforts to improve air quality, and create economic opportunity within the state,” Sullivan said in a statement. “Small businesses participating in the program are poised to reap the benefits of electric vehicle ownership by modernizing their fleets with environmentally friendly, state-of-the-art vehicles that not only reduce fuel costs and require less maintenance, but mitigate the harmful environmental impacts of transportation emissions in communities across New Jersey.”

According to an NJEDA statement, “the vehicles supported so far through the program are expected to result in the reduction of annual carbon emissions by more than 6,500 short tons within the communities in which they operate.”

Shawn LaTourette, commissioner of the New Jersey Department of Environmental Protection, called the project’s expansion a “significant step forward” toward the state’s overall clean energy goals.

“The NJDEP is pleased to partner with the NJEDA to further reduce the greenhouse gas emissions that contribute to global warming and climate change in our state,” LaTourette said in a statement. “As New Jersey’s transportation sector is the largest source of these emissions, the NJ ZIP expansion constitutes a significant step forward. These types of partnerships also demonstrate the power and strength of collaboration among state agencies. NJ ZIP supports small businesses with an eye toward transitioning their current vehicle fleet to zero-emission alternatives, helping to protect the environment, improve public health, and advance our environmental justice and clean energy goals.”

Vouchers are available on a first-come, first-served basis. More information, including all eligibility requirements, can be found here. LL