ASSEMBLY TRANSPORTATION AND COMMUNICATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1491

with committee amendments

STATE OF NEW JERSEY

DATED: MAY 13, 1996

      The Assembly Transportation and Communications Committee favorably reports Assembly Bill No. 1491 with committee amendments.

      The 1990 amendments to the federal Clean Air Act required states, such as New Jersey, in severe non-attainment areas for ozone to include programs requiring employers to implement programs to reduce work-related vehicle trips and miles traveled by employees in their State Implementation Plans (SIPs). The Clean Air Act was recently amended, Pub.L.104-70, to make such programs an optional part of a State’s SIP. The Clean Air Act now authorizes a State to remove such programs from its SIP, if the State notifies the Environmental Protection Agency that the State has undertaken, or will undertake, one or more alternative methods to achieve emission reductions equivalent to those to be achieved by the employer trip reduction program.

      As amended by the committee, this bill directs the Commissioner of Environmental Protection to so notify the EPA and to remove the mandated employer trip reduction program from New Jersey’s SIP. The bill repeals current State law mandating employers to undertake employer trip reduction programs, but maintains the tax benefits established for such participation as an incentive for employers to continue to encourage alternative means of commuting by providing commuter transportation benefits. Further, the amended bill increases the tax benefits available to those employers and their employees who had filed compliance plans pursuant to State law.

      In order that the Commissioner of Transportation may certify to the Director of the Division of Taxation eligibility for the tax benefits, the bill directs the commissioner to adopt regulations establishing the procedure to register with the Department of Transportation and the criteria to be met for an employer trip reduction program employing alternative means of commuting to receive certification for providing commuter transportation benefits.

      The committee amended the bill to provide increased tax benefits to those employers and their employees who had filed compliance plans pursuant to the "New Jersey Traffic Congestion and Air Pollution Control Act."