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State and Federal Incentives and Laws

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Tennessee

Alternative Fuel Innovations Grant

The Tennessee Department of Environment and Conservation administers a grant program to support the use of alternative fuels by local governments and public universities. Eligible projects include covering the incremental fuel costs, engine maintenance, conversion or installation of infrastructure, and promotional materials.

Point of Contact

Greg Riggs
Grant Coordinator
Tennessee Department of Agriculture
Phone (615) 532-0567
greg.riggs@state.tn.us
http://state.tn.us/environment/altfuels/pdf/grantapp.pdf

Agricultural Feedstock Processing Demonstration Loan Program

The Tennessee Department of Economic and Community Development will disperse loans of up to $500,000 for projects that increase Tennessee farm income and production of alternative fuel feedstock. Eligible facilities include those that process more than 200,000 bushels each year.

Point of Contact

Jeff Bolton
Director, Economic Development Grants and Loans
Tennessee Department of Economic and Community Development
Phone (615) 741-6201
Fax (615) 253-1870
jeff.bolton@state.tn.us
http://www.state.tn.us/ecd/feedstockgrant.htm

Infrastructure Development Program

FastTrack Infrastructure Development Program funds may be used for alternative fueling infrastructure improvements. Funds may be used in situations where there is a commitment by certain private sector businesses to locate or expand in the state and to create or retain jobs for Tennesseans.

Point of Contact

Philip Trauernicht
Director, Program Management, Community Development
Tennessee Department of Economic and Community Development
Phone (615) 253-1903
Fax (615) 253-1870
philip.trauernicht@state.tn.us
http://www.state.tn.us/ecd/progman_tiip.htm

Energy Task Force

The Governor’s Task Force on Energy Policy was established to develop a state energy plan to facilitate energy efficiency and the use of alternative and renewable fuels in the state. The energy plan will include the following: a summary of opportunities for the state government to use an energy-efficient approach in purchasing and managing the state vehicle fleet; prospective policies, legislation, and incentives to encourage energy efficiency; possible public-private partnerships to encourage research and development of clean energy technologies; and strategies for expanding the use of alternative and renewable fuels. (Reference Executive Order 54, 2008)

Biofuels Production Promotion

The state legislature supports the federal 25 by 25 Initiative, under which 25% of the total energy consumed in the U.S. by 2025 would be produced by domestic agriculture. (Reference Senate Joint Resolution 728, 2008)

Alternative Fuel and Fuel-Efficient Vehicle Use Requirements

All state agencies, universities, and community colleges that have more than 10 state-owned vehicles in their fleet are required to incorporate alternative fuel, hybrid electric, or other fuel-efficient or low-emission vehicles in order to reduce or displace at least 20% of the fleet's consumption of petroleum by January 1, 2010. If the fleet includes vehicles modified for educational, emergency, or public safety purposes or vehicles used for emergency or law enforcement purposes, the fleet must provide for a minimum 10% petroleum use reduction. (Reference Tennessee Code 4-22-101)

Energy-Efficient Vehicle Acquisition Requirement

State fleets are encouraged to make every effort to ensure that at least 30% of newly purchased motor vehicles are energy-efficient vehicles. Energy-efficient vehicles are defined as passenger vehicles that are: alternative fuel vehicles as identified by the Energy Policy Act of 1992 (Public Law 102-486) including those using ethanol, biodiesel, or other alternative fuel; a hybrid electric vehicle; or a conventional gasoline vehicle achieving an average fuel economy of at least 25 miles per gallon or greater. Beginning June 30, 2008, the Commissioner of General Services will compile information on motor vehicles owned and leased by the state including a categorization of vehicles by an energy-efficiency rating. (Reference Tennessee Code 4-3-1109)

Provision for Establishing an Alternative Fuel Research and Development Program

The Tennessee Department of Agriculture is authorized to develop and implement an alternative fuel research program to stimulate public and private research in fuel-related conversion technology. This research should address converting Tennessee agricultural products, such as soybeans, switchgrass, and other biomass, into alternative fuels, as well as the production capabilities needed to deliver such alternative fuels to Tennessee consumers. (Reference Tennessee Code 54-1-136)

Biofuels Strategy and Outreach Campaign

The Governor's Interagency Alternative Fuels Working group, supported administratively by the Tennessee Department of Environment and Conservation, was established to develop a comprehensive state alternative fuels strategy to make Tennessee a leader in the production, distribution, and use of biofuels. The Working Group developed BioTENN, a comprehensive, statewide public education and outreach campaign to increase public awareness and understanding of alternative fuels, particularly biofuels. Furthermore, state agencies should strive to use ethanol and biodiesel in appropriate state-owned vehicles whenever possible and should support the development of biofuels fueling infrastructure. (Reference Executive Order 33, 2006)

Biofuels Specifications

The Tennessee Department of Agriculture has the authority to inspect and test biofuels under the Kerosene and Motor Fuels Quality Inspection Act of 1989. (Reference Tennessee Code 47-18-1306)