Propane Laws and Incentives in Tennessee
The list below contains summaries of all Tennessee laws and incentives related to propane.
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)
Propane and Natural Gas Liability Immunity
An individual or entity that supplies, handles, transports, or sells propane or natural gas at a retail station is immune from civil liability if incorrect use of the fueling equipment causes injury or damage. To be immune, the fuel provider must exercise reasonable care of the equipment and take reasonable steps to warn the customer of the hazards associated with misuse of the equipment.
(Reference Tennessee Code 29-34-202 and 29-34-207)
State Incentives
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
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.