WASHINGTON, D.C. – Today, Congressman Brian Fitzpatrick (R-PA) and Congresswoman Linda T. Sánchez (D-CA) introduced the Renewable Natural Gas Incentive Act, bipartisan legislation that would provide a tax credit for renewable natural gas, which can be used in heavy-duty vehicles like buses and freight trucks to immediately reduce greenhouse gas and particulate emissions while further supporting clean and efficient transportation across the country. 

“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 Congressman Brian Fitzpatrick. “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,” said Congresswoman Linda T. Sánchez. “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 tax code currently provides a 50-cent credit for natural gas used in transportation including natural gas from renewable sources.  This credit, however, is less than the credit for renewable biodiesel which has consistently benefited from a $1 a gallon tax credit and is currently only available through 2024. 

The Renewable Natural Gas Incentive Act would create a $1.00 per gallon tax credit for sellers of renewable natural gas used for transportation for 10 years, allowing businesses to maximize the credit’s effectiveness to reduce their emissions while investing in zero-emission vehicle infrastructure.

The legislation is supported by the Moving Us Forward coalition, a group of organizations that includes:

  • 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 
  • WM

Companion legislation was filed on July 20, 2022 by U.S. Senators Mark R. Warner and Richard Burr.

You can view the full text of the Renewable Natural Gas Incentive Act HERE.