Clean Tennessee Energy Grants


In 2011, Tennessee and other states were parties to a federal court settlement of an enforcement action under the federal Clean Air Act that resulted in a consent decree with the Tennessee Valley Authority (TVA). A part of the Consent Decree obligates TVA to provide Tennessee $26.4 million to fund environmental mitigation projects. The funds are to be paid over 5 years or longer, with the first-year payment not to exceed $5.28 million. The Department of Environment and Conservation (TDEC) is designated by the Governor as the lead state agency to develop and manage a process for selection and implementation of the environmental mitigation projects for Tennessee.

Eligible Projects

The purpose of the Clean Tennessee Energy Grant Program is to select and fund projects that best result in a reduction of emissions and pollutants identified below. The Clean Tennessee Energy Program provides financial assistance to municipal government, county government, utility districts, and other entities created by statute (e.g. airport authority) in Tennessee to purchase, install, and construct energy projects that fit into one of the following eligible project categories:

  • Cleaner Alternative Energy: biomass, geothermal, solar, wind;
  • Energy Conservation: Lighting, HVAC improvements, improved fuel efficiency, insulation, idling minimization; and,
  • Air Quality Improvement: Sulfur Dioxide (SO2), Volatile Organic Compounds (VOCs), Oxides of Nitrogen (NOx), Hazardous Air Pollutants (HAPs), and Greenhouse Gases

Eligible Applicants

Municipal governments, County governments, utility districts, and other entities created by statute (e.g. airport authority) in Tennessee, are eligible to apply for grant funding from the Clean Tennessee Energy Grant Program.

Preference will be given to distressed counties, as identified below in the Pre-Proposal Manual,  by the Tennessee Department of Economic and Community Development, and counties that have not previously received Clean Tennessee Energy Grant funding. Additionally, projects must have a simple payback of less than 10 years on the entire project budget. 

Grant Timeline

There will not be any more rounds of grants from this funding source. Please visit our grants page for other grants available from our department.