Tennessee E85 Laws and Incentives
State Incentives
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.
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)
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)
