Deadline to apply for Tennessee Natural Gas and Propane Vehicle Grant Program

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Deadline to apply for Tennessee Natural Gas and Propane Vehicle Grant Program

December 16, 2016 @ 8:00 am - 8:00 pm UTC-5

October is National Energy Awareness Month, which serves to underscore how critical energy is to our prosperity, security, and environmental well-being. In Tennessee, the transportation sector accounts for about 30 percent of all energy consumed. By reducing transportation related end-use energy consumption, we can improve our economy and energy security while also reducing emissions. As such, TDEC’s Office of Energy Programs is pleased to invite public, non-profit, and private Tennessee-based fleets to apply for the Tennessee Natural Gas and Propane Vehicle Grant Program.
  • $2,500,000 is available under this competitive funding opportunity.
  • Each grant will provide up to 50% 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 three vehicles.
  • Eligible vehicles must be purchased new, from an original equipment manufacturer (OEM) or OEM-authorized dealer. The vehicles purchased must be fully equipped by the manufacturer or by a third party at the direction of the manufacturer to operate on an alternative fuel prior to the initial purchase and registration of the vehicle.
  • 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.
  • Vehicles must be classified as “medium-duty” or “heavy-duty,” and must therefore have a gross vehicle weight rating of at least 14,000 pounds. Examples of “medium-duty” vehicles that would be considered eligible are shuttle buses, delivery trucks, and some bucket trucks. Examples of “heavy-duty” vehicles that would be considered eligible are school buses, tractor trailers, and waste collection vehicles.
  • Applicants must intend to maintain operations in Tennessee for a minimum of six years.
Applications must be received by 8:00 pm CST on December 16, 2016. Awards are expected to be announced by January 16, 2017, and the expected timeframe for award negotiations will be March 2017.
For more information, and to access the Application and Application Manual, click here. If you have questions, please contact Alexa Voytek at or 615-532-0238.


December 16, 2016
8:00 am - 8:00 pm UTC-5
By joining TAEBC, you can be part of this exciting effort to grow Tennessee’s economy through advanced energy innovation, generation and manufacturing.