Propane Laws and Incentives in New Jersey

The list below contains summaries of all New Jersey laws and incentives related to propane.

Laws and Regulations

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)

Low Emission or Alternative Fuel Bus Acquisition Requirement

All buses purchased by the New Jersey Transit Corporation (NJTC) must be: 1) equipped with improved pollution controls that reduce particulate emissions; or 2) powered by a fuel other than conventional diesel. Qualifying vehicles include compressed natural gas vehicles, hybrid electric vehicles, fuel cell vehicles, vehicles operating on biodiesel or ultra-low sulfur fuel, or vehicles operating on any other bus fuel approved by the U.S. Environmental Protection Agency. If the NJTC is unable to meet the bus purchase requirement, the organization must submit a report to the New Jersey Senate and General Assembly detailing the reasons and the state legislature may grant an exemption.

(Reference New Jersey Statutes 27:1B-22)

State Incentives

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)

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