Tennessee Propane Laws and Incentives

State Laws and Regulations

Alternative Fuel and Fuel-Efficient Vehicle Use Requirements

By January 1, 2008, all state agencies, universities, and community colleges that have more than 10 state-owned vehicles in their fleet are required to develop and implement plans to increase the state's use of alternative fuels and hybrid electric or other fuel-efficient or low-emission vehicles. Specifically, each plan must incorporate a goal 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 entity's plan must provide for a minimum 10% petroleum use reduction. (Reference House Bill 723, 2007)

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 a 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 Senate Bill 123, 2007, and Tennessee Code 4-3-11)

Biofuels Committee

The Governor's Interagency Alternative Fuels Working group, supported administratively by the Department of Environment and Conservation, has been established to develop a comprehensive state alternative fuels strategy that will provide a roadmap to make Tennessee a leader in the production, distribution, and use of biofuels. The Working Group is also tasked with developing a comprehensive, statewide public education and outreach campaign to increase public awareness and understanding of alternative fuels, particularly biofuels.
Furthermore, state agencies are required to strive to use ethanol and biodiesel in appropriate state-owned vehicles whenever possible and should support the development of biofuels refueling infrastructure. The Departments of General Services and Transportation are required to develop a program to educate state employees about the use of biofuels and publicize fuel availability as new refueling sites become available. The Department of Transportation must continue efforts to encourage development of publicly accessible biofuel refueling stations across the state.
(Reference Executive Order 33, 2006)

Liquefied Petroleum Gas (LPG) Liability Immunity

An individual or entity involved in the business of supplying, handling, transporting, or selling LPG at a retail station is immune from civil liability if injury or damage is caused by the use of LPG equipment in a manner or purpose other than that for which the LPG equipment was intended. (Reference Tennessee Code 29-34-207 and 68-135)

Liquefied Gas Tax

A use tax of $0.14 per gallon is imposed on liquefied gas used for the propulsion of motor vehicles on public highways, in addition to an annual vehicle tax according to the following:

Government agencies are exempt from the Liquefied Gas Tax. "Liquefied gas" means all combustible gases that exist in the gaseous state at 60 degrees Fahrenheit and at a pressure of 14.7 pounds per square inch, but does not include gasoline or diesel fuel or compressed natural gas.
(Reference Tennessee Code 67-3-1101, 67-3-1102, 67-3-1103, and 67-3-1106)