United States: Tennessee unveils new alternative fuel programme

On 11 January, 2018, Tennessee Department of Environment and Conservation’s (TDEC) Office of Energy Programmes (OEP) released the application materials for a second round of the Tennessee Natural Gas and Propane Vehicle Grant Programme. The purpose of the initiative is to incentivise the purchase of and/or conversion to Autogas or natural gas-powered light, medium, and heavy-duty vehicles.

The second round of this competitive funding opportunity has allocated $1,700,000.  Each grant will provide up to 70% of the incremental purchase cost or vehicle conversion cost of eligible vehicles, with a maximum grant of $25,000 for each eligible vehicle.

Managed by TDEC OEP, the programme provides financial assistance to public, non-profit, and private fleets in Tennessee that apply to receive funding to purchase or convert a minimum of one eligible vehicle. The grant programme is limited to one application per entity, per location. Applications will be received until 15 March.

Eligible vehicles must either be purchased new, from an original equipment manufacturer (OEM) or OEM-authorised dealer, or be converted to run on Autogas or natural gas through an Environmental Protection Agency (EPA) certified after-market conversion.

Eligible vehicles include dedicated Autogas vehicles. Autogas bi-fuel vehicles, or vehicles that are capable of operating on gasoline or diesel in addition to LPG, shall be eligible for emergency response vehicles. (All bi-fuel vehicles will be required to utilise LPG 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. Bi-fuel vehicles will therefore only be eligible to receive no more than 52.5% of the conversion or incremental purchase cost, up to $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. Applicants must intend to maintain operations in Tennessee for a minimum of six years.

For more information, please check this link.

31 January 2018