$1.00 RNG Motor Fuel Tax Credit Bill Introduced in U.S. Senate

Washington, DC – The Transport Project (TTP) applauds the introduction by Senators Thom Tillis (R-NC) and Mark Warner (D-VA) of the Renewable Natural Gas Incentive Act, a bipartisan effort to provide a $1.00 per gallon tax credit for motor vehicles that use renewable natural gas (RNG) to further support cleaner and more efficient transportation across America.

The new bill updates legislation introduced in the 117th Congress – S. 4568 – by then Senator Richard Burr (R-NC) and Senator Warner and complements a similar bill – H.R. 2448 – introduced in the U.S. House earlier this session by Representatives Linda Sanchez (D-CA) and Brian Fitzpatrick (R-PA).

“Transitioning to RNG-fueled vehicles can save money and reduce emissions, and deploys new, affordable, cleaner, and compliant technology without delay and without compromising business operations,” said The Transport Project President Daniel Gage. “More and more commercial fleets are discovering how allocating RNG as transportation fuel can help achieve more sustainable results immediately. We are fortunate to have bipartisan, bicameral support in decarbonizing commercial trucking through RNG and getting this credit passed into law in this Congress.”

The Renewable Natural Gas Incentive Act of 2024 would create a $1.00 per gallon tax credit for dispensers of renewable natural gas used for transportation, thereby encouraging commercial truck and transit fleets to convert their vehicles to ultra-low emission RNG, or biomethane. Full text of the updated bill can be found HERE.

Renewable natural gas vehicles are powered by American fuel, American technology, and American innovation. No commercially available, reliable, and scalable heavy-duty powertrain solution runs cleaner than renewable natural gas, or biomethane.

Captured above ground from organic material in agricultural, wastewater, landfill, or food waste, RNG can produce carbon-negative results when fueling on-road vehicles like short- and long-haul trucks, transit buses, and refuse and recycling collection vehicles. California Air Resources Board data confirms that the annual weighted average carbon intensity (CI) value of California’s bio-CNG vehicle fuel portfolio in its Low Carbon Fuel Standard (LCFS) program in 2023 was below zero at -126.42 gCO2e/MJ, offering the only carbon negative clean transportation outcome in the program.¹

In 2023, 79 percent of all on-road fuel used nationwide in natural gas vehicles was from a renewable source.²

The Transport Project’s natural gas vehicle fleet and fueler members eagerly support the bill’s introduction:

“Methane-reducing RNG is integral to UPS’s strategy to reduce our environmental impact and invest in our future,” said Mike Kiely, UPS President of Global Government Affairs. “This legislation will support the use of RNG and encourage clean, efficient transportation while building energy security and promoting sustainability. It’s a winning solution for the logistics industry.”

“WM supports this thoughtful approach to investing in natural gas vehicles and trucking fleets that are allocated Renewable Natural Gas,” said John Skoutelas, Vice President, Government Affairs & Legal, WM (Waste Management). “WM is focused on working towards a more sustainable tomorrow through our action and investments to create a lower emission fleet. This piece of legislation is critical towards helping the heavy-duty vehicle sector shift away from diesel vehicles and transition to lower emission transportation fuel for a more sustainable future.”

“Because RNG captures harmful greenhouse gases at the source – like dairies and other agriculture facilities – and at the vehicle, it is rated the cleanest fuel in the world, many times cleaner than electric vehicles,” said Andrew Littlefair, CEO and President of Clean Energy Fuels Corp. “The bipartisan approach to this legislation demonstrates the win-win-win nature of RNG – addressing climate change, providing an affordable alternative fuel for U.S. fleets, and helping our farmers.”

With this credit, America’s transit agencies can continue to invest in cleaner, commercially available and proven renewable natural gas buses without reducing service or increasing fares, school districts can provide exhaust-free rides to school by replacing their dirty legacy fleets, and freight haulers and package delivery companies can afford to replace aging diesel trucks with cleaner renewable natural gas trucks.

More on how renewable natural gas is a NOW commercial transportation solution can be found at: https://transportproject.org/rng-is-how/.

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1. California Air Resources Board, Low Carbon Fuel Standard Program Reporting Tool Quarterly Summaries.  Available at: https://ww2.arb.ca.gov/resources/documents/low-carbon-fuel-standard-reporting-tool-quarterly-summaries ↩︎
2. https://transportproject.org/wp-content/uploads/2024/04/TTP-RNG-Decarbonize-2024.pdf ↩︎

The Transport Project is a national coalition of roughly 200 fleets, vehicle and engine manufacturers and dealers, servicers and suppliers, and fuel producers and providers dedicated to the decarbonization of North America’s transportation sector. Through the increased use of gaseous motor fuels including renewable natural gas and hydrogen, the United States and Canada can help achieve ambitious climate goals and greatly improve air quality safely, reliably, and effectively without delay and without compromising existing commercial business operations. Find out more at: transportproject.org.