POPULATION (2015): 6,600,299




Maximum E85 use:504 Million GPY
FFVs in use:672,652
E85 stations:74
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



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 Laws & Incentives

Biofuel Fueling Infrastructure Grants
The Tennessee Department of Transportation (TDOT) engages in public-private partnerships with transportation fuel providers to install biofuel fueling facilities. Fueling facilities include storage tanks and fuel pumps dedicated to dispensing E85 and biodiesel blends of 20% (B20). TDOT administers the Biofuel Green Island Corridor Grant Project (Project) to provide financial assistance for purchasing, preparing, and installing fueling facilities at private sector fuel stations. The goal of the Project is to help establish biofuel stations within 100 miles of each other along Tennessee's interstate system and major highways. There are no open grant solicitations (verified April 2017). For more information, see the TDOT Biofuel Green Island Corridor Grant Project website. (Reference Tennessee Code 54-1-136)

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 null and void. This regulation applies to contracts executed or renewed on or after January 1, 2010. (Reference 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. (Reference Tennessee Code 47-25-2003)

Biofuels Quality Specifications
The Tennessee Department of Agriculture may inspect and test biofuels under the Kerosene and Motor Fuels Quality Inspection Act of 1989. (Reference Tennessee Code 47-18-1306 and 54-1-136)

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 Infrastructure Grants and Loan Guarantees
The Rural Energy for America Program (REAP) provides grants and loan guarantees to rural (population less than 50K) small businesses to purchase renewable energy systems or make energy efficiency improvements. Eligible renewable energy systems include equipment used to distribute flexible fuels. The maximum grant funding is 25% of project costs and the maximum loan guarantee is $25 million. The program is funded through fiscal year 2018 but is subject to congressional appropriations thereafter. For more information, see the REAP website.

Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730

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
Average Retailer:
New gallons/$$/Mo E15 & Flex: 14,800 $2,500
New Customers/Mo:+1,647 
Additional Merch. Margin from above:$4,800
RINs not applied to reduce price:$720
Top Performing Retailer:
New gallons/$$/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

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