Department of Environmental Protection


Air Quality, Energy & Sustainability

Drive Green

Which of our projects will help to meet these goals?

  1. VW and RGGI
  2. EDA: NJ ZIP: Zero-emission Incentive Program
  3. Congestion Mitigation and Air Quality (CMAQ) Improvement Program
  4. TCI cap and invest
  5. Electricity grid impacts from charging

Clean Earth

1. VW and RGGI

New Jersey has invested more than $100 million in clean, equitable transportation projects that will improve air quality and reduce the effects of climate change while moving the state toward 100 percent clean energy by 2050. Leveraging proceeds from the Garden State's participation in the Regional Greenhouse Gas Initiative (RGGI) and the Volkswagen Mitigation Trust Funds will bring electrification programs, equitable mobility projects, and electric charging infrastructure to New Jersey's environmental justice communities. For more information, see

The $100 million investment will fund the following projects:

  • $9 million in grants for local government electrification projects that will help to improve air quality in environmental justice communities through the deployment of electric garbage and delivery trucks.
  • $13 million in grants for low- and moderate-income communities to reduce emissions that affect our children's air quality through the deployment of electric school buses and shuttle buses;
  • $5 million in grants for equitable mobility projects that will bring electric vehicle ride hailing and charging stations to four more New Jersey towns and cities;
  • $5 million in grants for deployment of fast charging infrastructure at 27 locations statewide;
  • $36 million to reduce diesel and black carbon emissions in environmental justice communities by electrifying port, cargo handling, and other medium- and heavy-duty equipment in port and industrial areas;
  • $15 million toward New Jersey Transit bus electrification; and
  • $15 million toward flex funding to further deploy additional resources to the listed initiatives.
VW Mitigation Phase 1 funded a variety of projects, including electric garbage trucks, school buses, transit buses, trucks, and port equipment. VW Mitigation Phase 2 is funding similar projects. Descriptions of the projects can be found at

We will continue to solicit for additional projects using RGGI funds. Check here for more information.

2. EDA: NJ ZIP: Zero-emission Incentive Program (see

NJ ZIP - NJEDA is a voucher program that opened for applications on April 6, 2021. This pilot supports businesses and institutions purchasing new medium-duty zero-emission vehicles that will operate in the Greater Newark, Greater Camden, Greater New Brunswick, or shore areas.

Eligible applicants include:

  • For-profit businesses and institutions (e.g. non-profits, schools, municipalities) registered in New Jersey
  • Purchase new zero-emission medium-duty (Class 2b-Class6) vehicle(s) from approved vendor
  • Operate more than 50% vehicle miles in greater Newark, greater Camden, greater New Brunswick areas, or shore areas

Newark Skyline

3. Congestion Mitigation and Air Quality (CMAQ) Improvement Program (federal funds)

Annually, North Jersey Transportation Planning Authority (NJTPA) provides funding for a variety of projects that are designed to reduce emissions in northern and central New Jersey. Projects totaling $20.6 million were funded under NJTPA's Transportation Clean Air Measures (TCAM) program for Fiscal Year 2021. They were selected in coordination with the New Jersey Department of Transportation.

  • New Jersey Department of Environmental Protection - $5,039,900 to continue the agency's highly successful It Pay$ to Plug In program, which offsets costs for purchase and installation of EV charging stations.
  • EZ Ride - $960,000 for five electric shuttles to be added to the fleet of EZ Ride shuttles, which primarily serve the Greater Newark and Meadowlands area.
  • Monmouth County - $200,000 for installing 25 electric charging stations on publicly accessible County properties including offices, parks, libraries, and other publicly available parking lots.
  • International Motor Freight - $4,029,600 for a public-private partnership with the Port Authority of New York & New Jersey to replace 20 or more heavy-duty drayage trucks with zero-emissions vehicles operating from the port along the I-80 and I-95 corridors.
The Delaware Valley Regional Planning Commission (DVRPC) also provides CMAQ funds for projects in the Central/South Jersey area. The City of Trenton received $300,000 in 2020 for an eMobility Program, which included installation of electric vehicles charging stations on public property and education and outreach to maximize the usage of the program.

4. TCI cap and invest

The Transportation and Climate Initiative (TCI) is a regional collaboration of 13 Northeast and Mid-Atlantic states and the District of Columbia that seeks to improve transportation, develop the clean energy economy and reduce carbon emissions from the transportation sector. The participating jurisdictions are: Connecticut, Delaware, the District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, and Virginia. TCI Next Steps 12.20.pdf

The Transportation and Climate Intiative Program (TCI-P) is a first-of-its-kind multi-jurisdictional program to reduce carbon emissions from cars, trucks, and other on-road motor vehicles, as well as increase investments in an equitable, cleaner, and more resilient transportation system. In December 2020, the governors of Massachusetts, Connecticut, and Rhode Island, and the mayor of the District of Columbia announced that theirs would be the first jurisdictions to launch this program, which puts the brakes on pollution while investing $300 million per year in cleaner transportation choices and healthier communities. The bipartisan Transportation and Climate Initiative Program (TCI-P) will cut greenhouse gas pollution from motor vehicles in the region by an estimated 26% from 2022 to 2032, generate a total of more than $3 billion dollars over 10 years for the participating jurisdictions to invest in equitable, less polluting transportation options and to help energize economic recovery. The program works by requiring large fuel suppliers to purchase "allowances for the pollution caused by the combustion of fuels they sell in participating jurisdictions." The total number of emission allowances would decline each year, resulting in auctions of these allowances to generate revenue. Each jurisdiction will invest the proceeds from allowance auctions into cleaner, more resilient transportation projects and programs to further reduce emissions and provide communities, workers, and businesses with equitable, clean, safe, and affordable low-carbon transportation choices. TCI-P also includes specific commitments and features designed to ensure that the program is implemented equitably, including that at least 35 percent of the program proceeds are invested for the benefit of communities that are overburdened by pollution and underserved the the current transportation system.

In an accompanying statement, eight other Northeast, mid-Atlantic, and Southeast states, including New Jersey, signaled that they will continue to work with Massachusetts, Connecticut, Rhode Island, and the District of Columbia on developing the details of the regional program while pursuing state specific initiative to reduce emissions and provide clean transportation solutions.

Newark Skyline

5. Electricity grid impacts from charging

To achieve the goals of producing 100% clean energy by 2050 and reducing the impact of climate change, New Jersey is growing its portfolio of renewable energy, with expansions of solar and wind energy. Significant work to build offshore wind turbines and to make New Jersey a leader in the wind energy field has begun. Those efforts are being combined with a shift to electric vehicles and building the infrastructure to support them. This clean energy can go into the electrical grid to help power the electri vehicles via charging stations installed around the state.

Current analysis shows the average unit cost of electricity will go down as electric vehicle use across New Jersey increases. This results in an aggregate cost reduction that flows to all New Jersey electric utility customers. In addition, average unit costs to produce electricity decline due to increased use of existing assets (power plants capacity as well as the transmission and distribution infrastructure), especially when managed charging scenarios are used and shift EV charging to off-peak times.

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