Search Federal and State Laws and Incentives

Natural Gas Measurement

Compressed natural gas (CNG) and liquefied natural gas (LNG) used for transportation must be sold in gasoline gallon equivalents (GGE) or diesel gallon equivalents (DGE) prescribed by the state, unless equivalent measures are established by the National Conference on Weights and Measures. According to current state law, one GGE is equal to 5.66 pounds (lbs.) of CNG. One DGE is equal to 6.38 lbs. of CNG or 6.06 lbs. of LNG. (Reference Tennessee Code 47-26-914)

Alternative Fuel Tax

Compressed natural gas (CNG) and liquefied gas used for operating motor vehicles on public highways is subject to excise tax imposed on a per gallon basis as follows:

For the purposes of this tax, the Tennessee Department of Revenue (Department) uses a CNG gallon equivalent factor of 5.66 pounds (lbs.) and a liquefied gas gallon equivalent factor of 6.06 lbs. Liquefied gas is all combustible gas that exists in the gaseous state at 60 degrees Fahrenheit and at a pressure of 14.7 lbs. per square inch, but does not include gasoline, diesel fuel, or CNG. Government agencies are exempt from this tax. (Reference Tennessee Code 67-3-1101 to 67-3-1103 and 67-3-1113)

Plug-In Electric Vehicle (PEV) Fee

In addition to standard registration fees, PEV owners must pay an annual fee of $100. Low-speed and medium-speed vehicles are exempt from the fee. (Reference Tennessee Code 55-4-116)