Electricity Laws and Incentives in Tennessee
The list below contains summaries of all Tennessee laws and incentives related to electricity.
Laws and Regulations
Alternative Fuel and Fuel-Efficient Vehicle Acquisition and Use Requirements
The Tennessee Department of General Services must ensure that at least 25% of newly purchased passenger motor vehicles procured for use in areas designated as ozone nonattainment areas are all-electric vehicles (EVs), hybrid electric vehicles (HEVs), natural gas vehicles (NGVs), or propane powered vehicles, provided that such vehicles are available at the time of procurement. If these vehicles are not available, conventional gasoline vehicles achieving an average fuel economy of at least 25 miles per gallon (mpg) may satisfy the requirement. In areas not designated as ozone nonattainment areas, at least 25% of newly purchased passenger motor vehicles must be EVs, HEVs, NGVs, propane powered vehicles, or conventional gasoline vehicles achieving an average fuel economy of at least 25 mpg. For non-passenger vehicles, state fleets must make a reasonable effort to purchase at least 5% of these vehicles as natural gas or propane vehicles.
State fleets must make every effort to ensure that 100% of newly purchased motor vehicles are energy-efficient vehicles. Energy-efficient vehicles are defined as passenger vehicles that use alternative fuels, as defined by the Energy Policy Act of 1992; HEVs; conventional gasoline vehicles achieving an average fuel economy of at least 25 mpg; or vehicles powered by ultra-low sulfur diesel achieving an average fuel economy of at least 30 mpg. Additionally, state agencies should use ethanol and biodiesel in appropriate state-owned vehicles whenever possible and support the development of biofuels fueling infrastructure.
The Tennessee Department of General Services must inventory the state’s passenger vehicle fleet and prepare annual progress reports that outline the fleet’s cost savings, pollution avoidance, and petroleum displacement.
(Reference Tennessee Code 4-3-1109)
Electric Vehicle (EV) Fee
In addition to standard registration fees, EV owners must pay an annual fee of $100. Annual EV registration fees increase according to the following schedule:
| Years | Annual EV Fee |
|---|---|
| 2024 to 2026 | $200 |
| 2027 | $274 |
| 2028 and later | $274, adjusted for annual inflation |
In addition to standard registration fees, hybrid electric vehicle (HEV) and plug-in hybrid electric vehicle (PHEV) owners will be subject to the following annual fees:
| Years | Annual HEV and PHEV Fee |
|---|---|
| 2024 to 2028 | $100 |
| 2028 and later | $100, adjusted for annual inflation |
Low-speed and medium-speed vehicles are exempt from the fee.
(Reference Tennessee Code 55-4-116)
Public Utility Definition
Electric vehicle (EV) chargers that provide electricity exclusively for EVs are not considered public utilities within the Tennessee Valley Authority (TVA) service area. EV chargers located outside of TVA’s territory may be subject to different regulations. For more information, see the TVA EnergyRight website.
State Incentives
Natural Gas Vehicle (NGV) and Electric Vehicle (EV) Weight Exemption
NGVs and EVs may exceed the state’s gross and axle vehicle weight limits by up to 2,000 pounds (lbs.). The NGV and EV maximum gross vehicle weight may not exceed 82,000 lbs. This exemption applies on all interstate highways.
(Reference Tennessee Code 55-7-203)
Tennessee's National Electric Vehicle Infrastructure (NEVI) Planning
The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Tennessee Department of Transportation (TDOT) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.
For more information about Tennessee’s NEVI planning process, see the TDOT Plan website. To review Tennessee’s NEVI plan, see the Joint Office State Plans for EV Charging website.
Vehicle Emissions Reduction and Electric Vehicle (EV) Charging Station Project Funding
The Tennessee Department of Environment and Conservation (TDEC) provides funding for the repower or replacement of Class 4-8 school, shuttle and transit buses, Class 4-7 local freight trucks, and Class 8 local freight trucks and port drayage trucks, with alternative fuel or all-electric models. Alternative fuels include, but are not limited to, compressed natural gas, propane, and hybrid electric technologies. TDEC also provides funding for light-duty EV charging infrastructure. Private, public, and non-profit organizations, including state, local, and tribal governments, are eligible for funding.
In partnership with the Tennessee Valley Authority (TVA), TDEC also provides funding for the Fast Charge TN Network, which supports the deployment of direct current (DC) fast charging stations. Eligible applicants include TVA-served Local Power Companies whose service territory is located along corridors.
The grant programs are funded in part by Tennessee’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including funding availability, see the TDEC Project Solicitations and Fast Charge TN Network websites.
More Laws and Incentives
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