Tag Archives: funding

Notice of Intent to Issue Second Round Funding: Tennessee Natural Gas and Propane Vehicle Grant Program

For the first time in almost four decades, the U.S. transportation sector produces more carbon dioxide emissions than any other sector. Within the State of Tennessee, the transportation sector also consumes the most energy of any other sector, representing 28.3% of all energy consumed in 2015. TDEC engages in a variety of programs and initiatives to assist with and facilitate the accelerated adoption of cleaner, alternative fuels and advanced vehicle technologies within the State. These initiatives are helping to reduce our transportation system’s footprint and to improve our air quality.A graph depicting Tennessee's energy consumption by sector, sourced from U.S. DOE.

One such initiative is the Tennessee Natural Gas and Propane Vehicle Grant program, designed to assist public, nonprofit, and private Tennessee-based fleets with the investment in and purchase of natural gas or propane-powered vehicles. TDEC OEP manages this program and has recently released a Notice of Intent (NOI) to open the program up for a second round of funding, details below.

Visit US DOE’s Alternative Fuel Data Center to learn more about the alt fuels available to you and your fleet. You can also use the Alternative Fuel Life-Cycle Environmental and Economic Transportation (AFLEET) tool to calculate your fleet’s petroleum use, costs of ownership, and emissions–and to learn how you might save in all these areas by switching to natural gas or propane.

TDEC OEP is pleased to release this NOI to issue a second round of funding under the Tennessee Natural Gas and Propane Vehicle Grant Program. The sound round of the program is limited to one application per grantee, per location. Applications may address a variety of eligible vehicle types and uses.


  • $1,700,000 will be available under this competitive funding opportunity.
  • Each grant will provide up to 70% of the incremental purchase cost 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.


  • A project must propose to receive funding for a minimum of one vehicle.
  • Eligible vehicles must either (1) be purchased new, from an original equipment manufacturer (OEM) or OEM-authorized dealer or (2) 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 compressed natural gas vehicles, dedicated liquefied natural gas vehicles, and dedicated propane-powered 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. (All bi-fuel vehicles will be required to utilize either natural gas or propane for no less than 75% of the vehicle’s fuel use for a period of no less than five years. The grant amount available to bi-fuel vehicles will be 75% that of dedicated vehicles. Bi-fuel vehicles will therefore only be eligible to receive no more than 52.5% of the conversion or incremental purchase cost, up to $25,000 for each eligible vehicle.)
  • 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.

Application forms for the second round of the Tennessee Natural Gas and Propane Vehicle Grant Program are expected to be released in the coming months. For more information about this program, or about other TDEC sustainable transportation efforts, contact Alexa Voytek at Alexa.Voytek@tn.gov or 615-532-0238.