State of Tennessee issues new round for clean fuels grant programme


Tennessee Department of Environment and Conservation’s Office of Energy Programs (TDEC OEP) will issue a second round of funding under the Tennessee Natural Gas and Propane Vehicle Grant Programme. The project assists public, non-profit, and private Tennessee-based fleets with the investment in and purchase of clean fuel vehicles.

The new round of the programme, managed by TDEC OEP, features $1,700,000. Each grant will provide up to 70% of the incremental purchase cost of eligible vehicles, with a maximum grant of $25,000 for each eligible vehicle. Light, medium, and heavy-duty vehicles will be considered eligible, as there will be no gross vehicle weight restrictions or requirements.

Eligible vehicles for this competitive funding opportunity can be purchased new, from an original OEM or OEM-authorised dealer or be converted to run on natural gas or Autogas through an Environmental Protection Agency (EPA) certified, after-market conversion.

Moreover, eligible vehicles include dedicated Autogas or natural gas vehicles. Bi-fuel vehicles, or vehicles that are capable of operating on gasoline or diesel in addition to Autogas or CNG, shall be eligible for emergency response vehicles only (however, all bi-fuel vehicles will be required to utilise either Autogas or CNG for no less than 75% of the vehicle’s fuel use for a period of no less than five years. The grant amount available to bi-fuel vehicles will be 75% that of dedicated vehicles).

For more information, please check this link.