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NJ ZIP
NEW JERSEY ZERO-EMISSION INCENTIVE PROGRAM

The NJ ZIP Phase 2 Purchaser Application has now closed.

Information on Phase 1 can be found under the “Phase 1 Information” tab below.

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New Jersey Zero-Emission Incentive Program: Voucher Pilot for Medium Duty and Heavy Vehicles

NJ ZIP is a $90M million voucher pilot launched by New Jersey Economic Development Authority (NJEDA) for Medium and Heavy Duty Zero-Emission Vehicles. This pilot is funded by Regional Greenhouse Gas Initiative (RGGI) proceeds allocated to NJEDA for the purposes of reducing harmful emissions, especially in communities disproportionately impacted by transportation emissions, and creating economic opportunity within the state. The program will provide vouchers with base values ranging between $20,000 to $175,000.

The goal of the program is to accelerate the adoption and use of zero-emission medium and heavy-duty vehicles within New Jersey; to reduce emissions within the state; and to continue to allow NJEDA to determine and stimulate market-readiness, assess effectiveness of funding levels and program design, and test methodologies for measuring economic impact of such adoption.  The pilot is being used as a vehicle to support the growth of the NJ zero-emission vehicle ecosystem, with accelerated adoption of zero-emission vehicles being the first step to attracting more jobs and investment, as other zero-emission vehicle programs and regulations roll out across multiple state agencies.

IMPORTANT INFORMATION TO READ BEFORE YOU APPLY:

APPLY HERE

NJ ZIP Phase 1 & 2 Voucher Overview

$90M

Total voucher pool

Figures as of August 7th, 2024

Phase 1

$59.7M

Voucher applications received

$16.1M

Active vouchers approved

$13M

Vouchers

redeemed

Phase 2

$69.8M

Voucher applications received

$46M

Active vouchers approved

$2.3M

Vouchers

redeemed

”NJ ZIP is a fantastic resource for small businesses like mine to afford transitioning to an electric fleet as we strive to reduce our carbon footprint and the additional bonus it provides gives woman-owned minority businesses, like mine, the opportunity for progress.” 

-NJ Zip Phase 1 Approved Applicant

Phase 2 Information:

Phase 2: Eligibility & Compliance Requirements

To be eligible, an applicant must be:

  • Be a commercial, industrial, or institutional organization registered in New Jersey.
  • In tax compliance
  • In good standing with the New Jersey Department of labor and New Jersey Department of Environmental Protection
  • Must purchase and register a new zero emission Class 2b – Class 8 vehicle for commercial, industrial, or institutional use within 12 months of voucher reservation
  • Must operate 75% of vehicle miles in NJ and register vehicle in NJ

Project Vehicle Eligibility

To be eligible, applicant new vehicle(s) must be:

  • A new zero emission vehicle. Retrofits and repowers of vehicles already owned by the Applicant are not eligible.
  • Purchased and registered within twelve months of receipt of voucher approval. An extension for up to an additional six months may be permitted and will be reviewed on a case-by-case basis.
  • Not a subject of VW or any other State funding for the same vehicle(s)
  • Procured from a Vendor that meets program eligibility requirements (detailed in the following section)

Note: Scrappage is not required, except for vehicles that are directly replacing a vehicle which is model year 2009 or older.

To be eligible, a vendor must:

  • Be registered or register to conduct business in NJ
  • Provide proof of a minimum of 12 months of experience selling or manufacturing eligible vehicles.
  • Provide a Tax Clearance Certificate
  • Provide documentation to support buyer applications and functionality of the vehicle:
  • A link to Vendor website that indicates eligible vehicles available for sale, and their related specifications
  • A specification sheet or, if custom vehicle, specification sheets for all major components, corroborating vehicle capabilities, charging/fueling needs, design appropriate to Applicant’s planned use, and eligibility
  • Timeline and process/plans by which Vendor intends to comply with the terms of the voucher (e.g., delivery of vehicle, development of charging/fueling plans, implementation of maintenance plan, etc.) prior to expiration of voucher
  • Agree to accept the Program’s voucher amount as a portion of the Applicant’s final vehicle payment, deducting the full voucher(s) amount from the upfront cost.

Phase 2: Voucher Amounts

Base Voucher Values

Voucher GVWR

Vehicle Class

Voucher Amount

8,501-10,000 lbs

Class 2B 

$20,000

10,001-14,000 lbs

Class 3 

$50,000

14,001-16,000 lbs

Class 4 

$65,000

16,001-19,500 lbs

Class 5 

$75,000

19,501-26,000 lbs

Class 6 

$90,000

26,001-33,000 lbs

Class 7 

$135,000

33,001+ lbs

Class 8 

$175,000

Phase 2 Bonus Criteria Summary  

  • Certified woman-, minority-, or veteran-owned business bonus: 4% per qualification
  • Small business bonus: 25% increase of the base voucher amount per vehicle
  • EJ Bonus: 10% for small business applicants or municipalities who commit to drive 50% or more vehicle miles in NJ overburdened communities for 3+ years.
  • NJ manufacturing bonus: 25% for Vendors that demonstrate 25% or more of the cost of that vehicle is spent in New Jersey on labor for vehicle design, assembly, and/or manufacturing or cost of components.
  • School Bus Bonus: 25% if applicant is purchasing a school bus

These bonuses may be stacked with applicants eligible for multiple bonus criteria.

Voucher amounts are capped at 100% of vehicle cost. The Applicant has a cap of $3M of total voucher budget to ensure equitable distribution of resources.

Phase 2: Conditions of Funding

By accepting the voucher funding, Applicants or, where applicable, Vendors will also agree to the following terms:

  • Register the vehicle in the State of New Jersey for a minimum of the three continuous years
  • Annually operate at least 75% of vehicle miles traveled (VMT) in the State of the New Jersey
  • Certification from the Vendor that the vehicle complies with all applicable state and federal requirements for operation, including the Federal Motor Vehicle Safety Standards (FMVSS) issued by the National Highway Traffic Safety Administration (NHTSA), found in Title 49 of the Code of Federal Regulations (CFR).
  • Warranty to Applicant for the eligible vehicle, indicating at least 3 years or 50,000 miles of coverage, whichever comes first, covering, parts (at a minimum, motor, drive train, and batteries, hydrogen fuel cells, etc.) and labor.
  • In-state servicing plan for maintenance of Applicant’s vehicle(s) aligned with industry norms and current best practices implemented by or before vehicle delivery.
  • Charging or fueling needs and plans to address such needs, as applicable to the technology, indicating if the applicant intends to use already available infrastructure (public or private) or including, if available, details on anticipated count, type, capacity, and location of chargers necessary for vehicle.
  • NJEDA’s right to audit and verify compliance with eligibility requirements post-voucher redemption and agree to provide responses and data upon request to support such audits and verifications. For example, to verify vehicle miles traveled within the eligible overburdened  communities, NJEDA may require data such as but not limited to telematics, route maps, delivery histories, etc.
  • Permit the use by NJEDA of Purchaser Applicant, Vendor, and vehicle data and information that is provided in the application and audit process, and that is not otherwise prohibited by law, for case studies and to support the development of future versions of this program, or future alternative programs
  • Purchaser Applicant will commit to displaying a visual indication on the commercial vehicle that it is a ZEV and that its purchase was subsidized through this program, as materially provided by NJEDA (e.g., a bumper sticker, placard, etc.)
  • The NJEDA will not provide consent to sell any Qualifying Vehicle(s) purchased in whole or in part with the Voucher Award provided by the Authority for the period of the Voucher Compliance Term. A sale would be construed as a default event, as specified in the grant agreement and the authority may seek repayment of voucher.

Phase 2: Application Process

Only Vendor applications that are received between application window (October 18th and November 22nd) will be reviewed for consideration as approved vendors in Phase 2. Future opportunities to apply for participation as a Vendor in Phase 2 are not guaranteed.

NJ ZIP pilot applications are rolling for applicants There is not a deadline for applying; the portal will remain open until all the voucher funds are reserved, on a first come, first served basis, with set asides by location, business type, and use case. If additional funds become available, the program may reopen or remain open. An applicant may apply for multiple vehicles within the same application. Voucher amounts are capped at 100% of vehicle cost. Applicants may not exceed $3 million in approved vouchers to ensure equitable distribution of resources. 

Vouchers will be issued and redeemed through six steps:

  1. Applicant selects an eligible Vendor and an eligible vehicle
  2. Applicant and Vendor prepare and submit their respective separate applications, including proof of eligibility and application fee. If a Vendor has already been approved, the Vendor does not need to obtain a new approval unless there is a change from the prior Vendor application and approval.
  3. NJEDA processes the applications and, if the Applicant, Vendor, and vehicle are eligible and funds are available, approves voucher(s), inclusive of qualifying bonuses and sends the Applicant a voucher reservation approval letter.
  4. The voucher funds are reserved for twelve months from the date of the approval letter. During this period, the vendor and the applicant must execute their respective program agreements and submit documentation of same. Then, the vehicle must be delivered to and registered by the Applicant during this period. A voucher reservation may be renewed for one six-month extension if requested prior to expiration and will be granted based on evidence by the Applicant and Vendor of good faith efforts to deliver and register vehicle within the additional time provided.
  5. Vehicle is delivered to and registered by the Applicant. Applicant submits documentation of this to NJEDA.
  6. Once vehicle is delivered and registered, and all relevant program agreements are met, Applicant may provide the voucher to the Vendor or submit the voucher for funds from NJEDA with which to pay the Vendor.

Phase 2: NJ ZIP Vendors and Vehicles

NJEDA offers a convenient list of approved vendor contacts for the entire voucher program journey, from application to compliance. Access it here: NJ ZIP Vendor List, and list of approved vehicles that can be accessed at NJ ZIP Vehicles List. Please be sure to reach out to the vendor associated with each vehicle record to ensure accuracy.

EJ Community/ Overburdened Community:

An Overburdened Community (OBC), as defined by the law, is any census block group, as determined in accordance with the most recent United States Census, in which:

  • at least 35 percent of the households qualify as low-income households (at or below twice the poverty threshold as determined by the United States Census Bureau);
  • at least 40 percent of the residents identify as minority or as members of a State recognized tribal community; or
  • at least 40 percent of the households have limited English proficiency (without an adult that speaks English “very well” according to the United States Census Bureau).

Click here for NJ Communities Document.

Institutional: As defined in the Global Warming Solutions Fund regulation (N.J.A.C. 7:27D-1.2), “institutional” means serving a non-profit or public purpose, such as a library, hospital, public school, institution of higher education, municipal utility, public recreation or cultural facility, or government entity. The term “government entity” includes local and municipal government entities, but for the purposes of this pilot, State government entities are not eligible.

Small business: For the purposes of this Program, a small business is defined as having 25 or fewer full time employees in total OR less than $5M in annual revenue.

Phase 1: Information Archive

The NJ ZIP is a pilot voucher program, with a Phase 1 voucher pool of $44.25M. Phase 1 of this pilot supported businesses and institutions purchasing new, medium-duty zero-emission vehicles (for this phase defined as Class 2b- Class 6) that will operate in the greater Camden, Newark, New Brunswick, and greater Shore areas. This pilot is funded by the Regional Greenhouse Gas Initiative (RGGI) proceeds allocated to NJEDA for the purposes of reducing harmful emissions, especially in communities disproportionately impacted by transportation emissions, and creating economic opportunity within the state. The Phase 1 pilot program provides vouchers with base values ranging between $25,000 to $100,000.

Voucher GVWR

Vehicle Class

Voucher Amount

8,501-10,000 lbs

Class 2B 

$25,000

10,001-14,000 lbs

Class 3 

$55,000

14,001-16,000 lbs

Class 4 

$75,000

16,001-19,500 lbs

Class 5 

$85,000

19,501-26,000 lbs

Class 6 

$100,000

Phase 1 Bonus Criteria Summary  

  • Certified woman-, minority-, or veteran-owned business bonus: $4,000 per vehicle  
  • Small business bonus: A 25% increase of the base voucher amount per vehicle
  • Small business vehicle scrappage bonus: $2,000 per vehicle scrapped and replaced with a NJ ZIP voucher-funded ZEV
  • New Jersey manufacturing bonus: A 25% increase of base voucher amount per vehicle if Vendor can formally document that 25% of the cost of the vehicle is spent in NJ on labor for vehicle design, assembly, or manufacturing and cost of components produced in New Jersey.   
  • Driver readiness and education bonus: $2,000 per vehicle if Vendor provides two public training sessions per quarter in the year following Applicant voucher(s) approval, for a total of 8 sessions, including at least an overview of the technology, operation, and safety, given by subject matter experts. In addition, Vendor must provide a once per quarterly opportunity in the year following Applicant voucher(s) approval for publicly available vehicle test drive or in-person vehicle viewing and demonstration within one or more of the selected pilot communities.

These bonuses may be stacked, with applicants eligible for multiple bonus criteria

NJEDA’s right to audit and verify compliance with eligibility requirements post-voucher redemption, and agree to provide responses and data upon request to support such audits and verifications. For example, to verify vehicle miles traveled within the eligible pilot communities, NJEDA may request data such as but not limited to telematics, route maps, delivery histories, etc.

Permit the use by NJEDA of Applicant, Vendor, and vehicle data and information that is provided in the application and audit process, and that is not otherwise prohibited by law, for case studies and to support the development of future versions of this program, or future alternative programs.

Commit to displaying a visual indication on the commercial vehicle that it is a ZEV and that its purchase was subsidized through this program, meeting minimum standards or as materially provided by NJEDA (e.g., a bumper sticker, placard, etc.)

For the purposes of this pilot, the greater Camden, Newark, and New Brunswick areas are defined as the overburdened communities within or intersected by a circle with a 10-mile radius centered in Camden, Newark, or New Brunswick, respectively. As of December 1, 2021, the greater Shore area will also be eligible, defined as the overburdened communities within or intersected by a line set at a 10-mile distance from New Jersey’s eastern Atlantic shore, spanning approximately from Sandy Hook Bay to Delaware Bay. Specifically, the eligible municipalities within each area are:

Greater Camden area: Bellmawr, Camden, Cherry Hill, Cinnaminson, Collingswood, Delran, Deptford, Gloucester, Lawnside, Lindenwold, Magnolia, Maple Shade, Merchantville, Mount Ephraim, Mount Laurel, Palmyra, Paulsboro, Pennsauken, Riverside, Somerdale, Stratford, Voorhees, Washington, West Deptford, Westville, Woodbury, Woodlynne

Greater Newark area: Bayonne, Belleville, Bloomfield, Carlstadt, Carteret, Clark, Clifton, Cranford, East Newark, East Orange, East Rutherford, Elizabeth, Glenridge, Guttenberg, Harrison, Hillside, Hoboken, Irvington, Jersey City, Kearney, Kenilworth, Linden, Little Falls, Livingston, Lyndhurst, Maplewood, Millburn, Montclair, Moonachie, Newark, North Arlington, North Bergen, Nutley, Orange, Passaic, Rahway, Roselle, Roselle Park, Rutherford, Secaucus, South Orange, Springfield, Summit, Union City, Union Township, Verona, Wallington, Weehawken, West New York, West Orange, Westfield, Woodridge

Greater New Brunswick area: Bound Brook, Bridgewater, Clark, Dunellen, East Brunswick, Edison, Franklin, Green Brook, Highland Park, Hillsborough, Jamesburg, Manville, Metuchen, Middlesex, Monroe, Montgomery, New Brunswick, North Brunswick, North Plainfield, Old Bridge, Perth Amboy, Piscataway, Plainfield, Raritan, Sayreville, Scotch Plains, Somerville, South Amboy, South Bound Brook, South Brunswick, South Plainfield, South River, Spotswood, Woodbridge

Greater Shore area: Absecon, Asbury Park, Atlantic City, Barnegat Township, Berkeley Township, Bradley Beach Borough, Brick Township, Brigantine, Cape May, Colts Neck Township, Eatontown Borough, Egg Harbor City, Egg Harbor Township, Farmingdale Borough, Galloway Township, Highlands Borough, Holmdel Township, Howell Township, Keansburg Borough, Keyport Borough, Lacey Township, Lakewood Township, Little Egg Harbor Township, Long Branch, Lower Township, Manchester Township, Middle Township, Middletown Township, Neptune City Borough, Neptune Township, North Wildwood, Northfield, Ocean City, Ocean Gate Borough, Ocean Township, Pleasantville, Point Pleasant Beach Borough, Red Bank Borough, Seaside Heights Borough, Shrewsbury Township, Somers Point, South Toms River Borough, Stafford Township, Tinton Falls Borough, Toms River Township, Tuckerton Borough, Union Beach Borough, Ventnor City, Wildwood, Woodbine Borough

NJ ZIP pilot applications are rolling for both applicants and vendors. There is not a deadline for applying; the portal will remain open until all the voucher funds are reserved, on a first come, first served basis, with set asides by location, business type, and use case. If additional funds become available, the program may reopen or remain open. An applicant may apply for multiple vehicles within the same application. Voucher amounts are capped at 100% of vehicle cost. Applicants may not exceed $1.5 million in approved vouchers to ensure equitable distribution of resources.

Pilot Program Application Process

Vouchers will be issued and redeemed through six steps:

  1. Applicants selects an eligible Vendor and an eligible vehicle.
  2. Applicant and Vendor prepare and submit their respective separate applications, including proof of eligibility and application fee. If a Vendor has already been approved, the Vendor does not need to obtain a new approval unless there is a change from the prior Vendor application and approval.
  3. NJEDA processes the applications and, if the Applicant, Vendor and vehicle are eligible and funds are available, approves voucher(s), inclusive of qualifying bonuses and sends the Applicant a voucher reservation approval letter.
  4. The voucher funds are reserved for six months from the date of the approval letter. During this period, the vendor and the applicant must execute their respective program agreements and submit documentation of same. Then, the vehicle must be delivered to and registered by the Applicant during this period. A voucher reservation may be renewed for up to one twelve-month extension if requested prior to expiration and will be granted based on evidence by the Applicant and Vendor of good faith efforts to deliver and register vehicle within the additional time provided.
  5. Vehicle is delivered to and registered by the Applicant. Applicant submits documentation of this to NJEDA.
  6. Once vehicle is delivered and registered, and all relevant program agreements are met, Applicant will provide voucher to Vendor, who redeems the voucher funds from NJEDA.
  7. Applicant and Vendor will respond to NJEDA’s audit requests as need to confirm post-award compliance.

Phase 1: Documents

Board Memo
Frequently Asked Questions
Voucher Agreement Sample

Phase 1: Webinar Recordings:
Informational Webinar for Vendors (3/25/21)

SLIDES | RECORDING

Information Webinar for Buyers/Purchasers (3/25/21)

SLIDES | RECORDING

PHASE 2
PROGRAM GUIDE

Program board Memo (Phase 2) VOUCHER AGREEMENT NJ RGGI Strategic Funding Plan Frequently Asked Questions climate investment dashboard Annual Compliance Questionnaire NJ Zip HELp DESK Technical Assistance and Financing Business Form Technical Assistance and Financing Business List

Trouble accessing the application portal? Trouble logging in? Call Customer Care at 844-965-1125

Questions about the program? Or about EVs? Call or text NJ ZIP Help Desk at 732-790-0663 or email at njzip-help@ejb.Rutgers.edu.

For any other additional questions about this program, please reach out to njzip@njeda.com.

Phase 2 Purchaser Application Walk-Through
(03/23/23)

SLIDES l RECORDING

Phase 1 Purchaser Panel Discussion
(02/02/23)

RECORDING

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