Recently passed and enacted, Senate Bill 1759 amends Tennessee Code Annotated Title 4 and Title 67 regarding alternative fuels and energy-efficient vehicles. Title 4’s amendments are mandates specific to state vehicle fleets, while Title 67’s amendments are specific to commercial and industrial property owners.
Title 4 showcases the department’s new goal, which states that 100% of any newly-purchased motor vehicles for state use will be energy efficient or will run on alternative fuels. At least 25% of newly purchased vehicles that will be used in nonattainment areas will be hybrids or run on natural gas or propane. Additionally, 25% of all vehicles purchased for use outside nonattainment areas should be hybrids, run on alternative fuel, or be compact fuel-efficient vehicles. In order to support these new goals, the department will develop and/or take part in pilot programs as needed to bolster infrastructure that will support natural gas and propane fuel.
Title 67’s amendments are specific to commercial and industrial property owners. Any public utility or commercial industrial property that is a certified alternative fueling site used for fueling vehicles that run on natural gas or propane are generally not able to service as many vehicles, due to limited availability. Because of this, such facilities’ immediate economic values should not exceed 30% of total installation costs, which assessors and comptrollers should take into consideration during appraisal and reappraisal processes. Personal property used in these facilities is also granted the same 30% valuation. Additionally, any facility that uses compressed or liquid propane for fueling vehicles and is projected to relocate 6,000 gallons of petroleum within a year will be considered a green energy production facility, as long as it is certified as such by the Department of Environment and Conservation.
To read the bill, visit http://www.capitol.tn.gov/Bills/108/Bill/SB1759.pdf