Tennessee Opens Second Round of Natural Gas and Propane Vehicle Grant Program

TDEC’s Office of Energy Programs has invited public, non-profit, and private Tennessee-based fleets to apply for the second round of the Tennessee Natural Gas and Propane Vehicle Grant Program.

$1.7 million will be available under the second round of this competitive funding opportunity. Each grant will provide up to 70 percent of the incremental purchase cost or vehicle conversion of eligible vehicles, with a maximum grant of $25,000 for each eligible vehicle. The maximum amount that may be awarded to a grantee shall not exceed $250,000.

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

Vehicles must be registered within the State of Tennessee, unless the vehicle is to receive International Registration Plan (IRP) apportioned registration. In the case of the latter, the entity applying for a grant must submit a letter, certifying the percentage of time that the vehicle is expected to operate within the State of Tennessee.

Eligible vehicles include dedicated CNG and LNG vehicles. Natural gas or propane-powered bi-fuel vehicles, or vehicles that are capable of operating on gasoline or diesel in addition to natural gas or propane, shall be eligible for emergency response vehicles only. 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.

Applications must be received by March 15, 2018. Awards are expected to be announced by April 15, 2018, and the expected timeframe for award negotiations will be June 2018.