Tennessee Code Title 54. Highways, Bridges and Ferries § 54-1-136

(a) The department of transportation is authorized to undertake public-private partnerships with transportation fuel providers, including, but not limited to, farmer co-ops, to install a network of refueling facilities, including storage tanks and fuel pumps, dedicated to dispensing biofuels, including, but not limited to, ethanol (E85) and biodiesel (B20).

(b) To accomplish the purposes of this section, the department may establish a grant program to render financial assistance to help pay the capital costs of purchasing, preparing, and installing fuel storage tanks and fuel pumps for biofuels at private sector fuel stations. The department may apply for, and make reasonable efforts to secure, federal assistance and other funding sources for the grant program. The department may attempt to maximize the total investment in biofuel refueling facilities.

(c) For the purpose of establishing biofuel storage tanks and fuel pumps at private sector fuel stations, the department shall use any federally-appropriated funds or the general assembly may appropriate the funds to the department from sources other than the state highway fund.

(e) No expenditure of public funds, pursuant to this section, shall be made in violation of Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d).

(f) The department may also develop and implement a program to encourage all political subdivisions of the state and public colleges and universities to increase the number of vehicles that use alternative fuels in the fleets of all political subdivisions, colleges, or universities.