Tennessee Biodiesel Laws and Incentives
State Incentives
Biofuels Fueling Infrastructure Grants
The Tennessee Department of Transportation (TDOT) engages in public-private partnerships with transportation fuel providers, including but not limited to farmer cooperatives, to install fueling facilities. Fueling facilities include storage tanks and fuel pumps dedicated to dispensing biofuels, including ethanol (E85) and biodiesel (B20). TDOT administers the Biofuel Green Island Corridor Grant Project (Project), to provide financial assistance to help pay the capital costs of purchasing, preparing, and installing fuel storage tanks and fuel pumps for biofuels at private sector fuel stations. The goal of the Project is to help establish readily available biofuel stations, within 100 miles of each other, along Tennessee's interstate system and major highways. (Reference Tennessee Code 54-1-136 and Executive Order 33, 2006)
Alternative Fuel Innovations Grants
The Tennessee Department of Environment and Conservation administers a grant program to support the use of alternative fuels by local governments and public universities. Eligible projects covered include: incremental fuel costs; engine maintenance; conversion or installation of infrastructure; and promotional materials.
Biodiesel Production Incentive
The Tennessee biodiesel manufacturers' incentive fund provides $0.20 per gallon of biodiesel fuel produced and sold to Tennessee companies. Each manufacturer is eligible to receive incentives for up to 10 million gallons of biodiesel produced annually. Biodiesel is defined as mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats that meet the registration requirements for fuels and fuel additives established by the U.S. Environmental Protection Agency and conform to ASTM specification D6751. This incentive is available through June 30, 2013. (Reference Tennessee Code 67-3-103 and 67-3-423)
Infrastructure Development Program
FastTrack Infrastructure Development Program funds may be used for alternative fueling infrastructure improvements. Funds may be used by private sector businesses to locate or expand fueling infrastructure in the state and to create or retain jobs for Tennesseans. Other restrictions may apply.
State Laws and Regulations
Supply of Petroleum Products for Blending with Biofuels
All refiners and suppliers of petroleum products must make all grades of gasoline and diesel fuel available to any wholesaler in a condition that allows for the fuel to be blended with ethanol or other biological products and sold for sale in Tennessee. In addition, gasoline products must be made available with detergent additives in sufficient concentrations such that after the addition of ethanol, the final product meets or exceeds the lowest additive concentrations required by the U.S. Environmental Protection Agency. (Reference Senate Bill 1931, 2009, and Tennessee Code 47-25-2001 through 47-25-2004)
Energy Task Force
The Governor's Task Force on Energy Policy was established to develop a state energy plan to facilitate energy efficiency and the use of alternative and renewable fuels in the state. The energy plan will include the following: a summary of opportunities for the state government to use an energy-efficient approach in purchasing and managing the state vehicle fleet; prospective policies, legislation, and incentives to encourage energy efficiency; possible public-private partnerships to encourage research and development of clean energy technologies; and strategies for expanding the use of alternative and renewable fuels. (Reference Executive Order 54, 2008)
Biofuels Production Promotion
The state legislature supports the federal '25 x 25' initiative, under which 25% of the total energy consumed in the U.S. by 2025 would be produced by domestic agriculture. (Reference Senate Joint Resolution 728, 2008)
Biodiesel and Ethanol Definitions and Retail Requirements
Biodiesel blend stock must be at least 99% biodiesel (no more than 1% diesel fuel) and meet ASTM specification D6751. Biodiesel blends must meet ASTM specification D975. Biodiesel blends made available for public use at a retail location may not exceed 20% biodiesel (B20) by volume and biodiesel blends containing more than 5% biodiesel (B5) by volume must be labeled as a biodiesel blend at the pump. Ethanol is defined as nominally anhydrous ethyl alcohol meeting ASTM specification D4806. Ethanol blends made available for public use at a retail location must be labeled accordingly (e.g., E85). (Reference Rules of the Tennessee Department of Agriculture 0080-5-12-.01, 0080-5-12-.02, and 0080-5-12-.03)
Alternative Fuel and Fuel-Efficient Vehicle Acquisition and Use Requirements
All state agencies, universities, and community colleges that have more than 10 state-owned vehicles in their fleet are required to incorporate alternative fuel, hybrid electric, or other fuel-efficient or low emission vehicles into their fleet in order to reduce or displace at least 20% of the fleet's consumption of petroleum by January 1, 2010. If the fleet includes vehicles modified for educational, emergency, or public safety purposes or vehicles used for emergency or law enforcement purposes, the fleet must provide for a minimum 10% petroleum use reduction.
Further, state fleets are encouraged to make every effort to ensure that at least 30% of newly purchased motor vehicles are energy-efficient vehicles. Energy-efficient vehicles are defined as passenger vehicles that are: alternative fuel vehicles as identified by the Energy Policy Act of 1992 including those using ethanol, biodiesel, or other alternative fuel; hybrid electric vehicles; or conventional gasoline vehicles achieving an average fuel economy of at least 25 miles per gallon. State agencies should strive to use ethanol and biodiesel in appropriate state-owned vehicles whenever possible and should support the development of biofuels fueling infrastructure. The Tennessee Commissioner of General Services is required to compile and maintain information on motor vehicles owned and leased by the state including a categorization of vehicles by an energy-efficiency rating.
(Reference Tennessee Code 4-3-1109, 4-22-101, and 4-22-102, and Executive Order 33, 2006)
Provision for Establishing an Alternative Fuel Research and Development Program
The Tennessee Department of Agriculture is authorized to develop and implement an alternative fuel research program to stimulate public and private research in fuel-related conversion technology. This research should address converting Tennessee agricultural products, such as soybeans, switchgrass, and other biomass, into alternative fuels, as well as the production capabilities needed to deliver such alternative fuels to Tennessee consumers. (Reference Tennessee Code 54-1-136)
Biofuels Strategy and Outreach Campaign
The Governor's Interagency Alternative Fuels Working Group, supported administratively by the Tennessee Department of Environment and Conservation, was established to develop a comprehensive state alternative fuels strategy to make Tennessee a leader in the production, distribution, and use of biofuels. The Working Group developed BioTENN, a comprehensive, statewide public education and outreach campaign to increase public awareness and understanding of alternative fuels, particularly biofuels. (Reference Executive Order 33, 2006)
Biofuels Specifications
The Tennessee Department of Agriculture has the authority to inspect and test biofuels under the Kerosene and Motor Fuels Quality Inspection Act of 1989. (Reference Tennessee Code 47-18-1306)
