Propane vehicle grant program intends to issue second round of funding

The Tennessee Department of Environment & Conservation’s Office of Energy Programs (TDEC OEP) released a notice of intent to issue a second round of funding under the Tennessee Natural Gas and Propane Vehicle Grant Program.

This program assists public, non-profit and private Tennessee-based fleets with the investment in and purchase of natural gas and propane-powered vehicles.

According to TDEC OEP, a total of $1.7 million will be available for funding and each grant will provide up to 70 percent of the incremental purchase cost of eligible vehicles. No more than $25,000 will be awarded to each eligible vehicle and the maximum amount awarded to a grantee will not exceed $250,000. Program applications are limited to one per grantee per location.

Vehicles eligible for funding can be purchased new from an original equipment manufacturer (OEM) or an OEM-authorized dealer. According to TDEC OEP, vehicles may also be converted to run on natural gas or propane autogas through an Environmental Protection Agency-certified, aftermarket conversion.

All vehicles must be dedicated liquefied natural gas or propane-powered vehicles. Any bi-fuel vehicles must use natural gas or propane for no less than 75 percent of the vehicle’s fuel use for no less than five years in order to be considered for funding, TDEC OEP says.

For more information regarding eligibility and the application process, visit Tennessee Clean Fuels or Tennessee Department of Environment & Conservation.