Bill aims to create $1 per gallon tax credit for RNG fuel sales

Energy Disrupter

ADVERTISEMENT

Reps. Brian Fitzpatrick, R-Pa., and Linda T. Sánchez, D-Calif., on Dec. 1 introduced the Renewable Natural Gas Incentive Act. The bill aims to create a $1 per gallon tax credit for the sale of renewable natural gas (RNG) used in transportation. Companion legislation was introduced by Sens. Richard Burr, R-N.C., and Mark Warner, D-Va., in July.

“Renewable natural gas (RNG) provides economical and clean energy that can offer carbon-negative fuel for some of our nation’s largest supply chain vehicles,” said Fitzpatrick said. “Providing businesses with tax credits for RNG will boost our economy and safeguard our environment. I am proud to support this commonsense, bipartisan legislation alongside my colleague, Rep. Sánchez, and to advocate for cleaner businesses and communities across the United States.”

“Renewable natural gas offers cleaner, more affordable, and sustainable transportation fuel for the industries that keep America running,” Sánchez said“With this credit, transit agencies, school districts, freight haulers, and package delivery companies can invest in cleaner energy and replace aging fleets without slowing production or increasing costs. I am proud to introduce legislation that will protect our planet, keep our economy running, and drive down emissions in environmental justice communities while we continue to invest in zero-emission vehicles across the country.”

The bill is supported by the Moving Us Forward coalition, which includes the American Biogas Council , American Farm Bureau Federation, American Trucking Association, ANGI Energy, California Dairies, Clean Energy Fuels, Contract Transport Services, Demi, Hexagon Agility, Natural Gas Vehicles for America, National Milk Producers Federation, OPAL Fuels, Tulsa Gas Technologies, UPS, and WM.

“The use of RNG vehicles and investment in infrastructure are critical to enabling a carbon neutral future,” said Mike Kiely, president of U.S. government affairs, UPS. “This legislation will help to support the use of methane-reducing RNG and encourage clean and efficient transportation while building energy security. Cleaner-burning fuel will help us reach carbon neutrality by 2050. It’s a winning solution for the logistics industry.”

“Renewable natural gas as a transportation fuel is growing in acceptance because of its ease of use, the growing availability and most importantly it reduces carbon emissions like no other alternative. In fact, it’s the only transportation fuel that has a carbon negative intensity rating,” said Andrew Littlefair, president and CEO, Clean Energy Fuels Corp. “The legislation introduced by Congresswoman Sanchez and Congressman Fitzpatrick is a great example of a bipartisan effort that will speed up the adoption of RNG and gives the transportation and agriculture industries the added incentive to invest in this remarkable fuel.”

“WM supports this thoughtful approach to investing in vehicles and trucking fleets running on Renewable Natural Gas,” said John Skoutelas, vice president of government affairs and legal, WM (Waste Management). “WM is focused on working towards a more sustainable tomorrow through our action and investments to create a near-zero-emission fleet.  This piece of legislation is critical towards helping the heavy-duty vehicle sector shift away from diesel vehicles and transition to a cleaner greener future.”