tennessee

Tennessee

POPULATION (2015): 6,600,299

REGISTERED CARS & LIGHT TRUCKS: 5,304,908

ANNUAL GAS CONSUMPTION (2014): 3.2 Billion GPY

TOTAL RETAIL STATIONS: 3,304

Maximum E85 use:504 Million GPY
FFVs in use:672,652
E85 stations:77
Flex Station implied demand:+342
Maximum E15 use:2.5 Billion GPY
EPA approved E15 vehicles:4,243,926
E15 Station implied demand:+2,643

Fuel specifications

Gasoline:

Conventional

Reid Vapor Pressure:

Retailers in Davison, Rutherford, Shelby, Sumner, Williamson and Wilson counties require 7.8 psi RVP gasoline from June 1-September 15. Retailers in all other locations require 9.0 psi RVP gasoline. Also, gas that contains 9%-10% ethanol receives a 1.0 psi waiver during those months. In May, the state accepts 11.5 psi gasoline at the retail level during the seasonal transition.

Contact information for key state regulatory agencies

Department of Weights and Measures, 615-837-5103

State incentives

Biofuel Blending Contract Regulation
Any provision in a contract between a fuel wholesaler and a refiner or supplier that limits or restricts the wholesaler’s ability to blend petroleum products with ethanol or biodiesel is void. This regulation applies to contracts executed or renewed on or after January 1, 2010. (Tennessee Code 47-25-2004)

Supply of Petroleum Products for Blending with Biofuels
Petroleum product refiners and suppliers must make all grades of gasoline and diesel fuel available to any wholesaler in a condition that allows for the fuel to be blended with ethanol or other bio-based products and sold in Tennessee. In addition, gasoline products must be available with detergent additives in sufficient concentrations such that after the addition of ethanol, the final product meets or exceeds the lowest additive concentrations that the U.S. Environmental Protection Agency requires. (Tennessee Code 47-25-2003)

Federal incentives

Alternative Fuel Infrastructure Tax Credit
(Originally expired 12/31/13 - retroactively extended through 12/31/16, by H.R. 2029) Fueling equipment for E85 installed between January 1, 2014, and December 31, 2016, is eligible for a tax credit of 30% of the cost, not to exceed $30,000. Station owners with multiple locations can use the credit towards each site. For more information about claiming the credit, see IRS Form 8911.

Ethanol plant direct E85/ethanol sales

Click here for a complete list of domestic ethanol producers and sales contacts for E85/direct ethanol sales

E15/Flex Fuel Profit Estimate
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Tennessee
AVG STATION (80,200 GPM)
Average Retailer:
New gallons/$$/Mo E15 & Flex: 14,800 $2,500
New Customers/Mo:+1,647 
Additional Merch. Margin from above:$4,800
RINs not applied to reduce price:$720
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TOTAL NEW PROFIT/MO  $8,020
Top Performing Retailer:
New gallons/$$/Mo E15 & Flex:35,100$5,800
New Customers/Mo:+3,905 
Additional Merch. Margin from above:$11,400
RINs not applied to reduce price:$2,000
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TOTAL NEW PROFIT/MO  $19,200

Want to see what E15/Flex fuels could do for your operation?

Try out the E15/Flex fuel profit Estimator
A Roadmap for Ethanol cover

a roadmap for ethanol

You’re thinking about adding or switching to a new fuel grade on your product slate, and you’ve considered premium and diesel, because those are the fuels all station owners consider. But today, the market is different, and you’re curious about what E15, E85, and other flex fuels could do for your business. Good move.

Download the Full Guide