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

Washington, DC – The Transport Project (TTP) applauds the introduction by Senators Thom Tillis (R-NC) and Mark Warner (D-VA) and Representatives Brian Fitzpatrick (R-PA) and Linda Sánchez (D-CA) of the Renewable Natural Gas Incentive Act (S. 1252/H.R. 2596), a bipartisan and bicameral 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.  Full text of the legislation can be found HERE. 

“The Renewable Natural Gas Incentive Act is a smart investment in America’s energy independence and economic growth,” said Senator Tillis. “By expanding domestically produced renewable natural gas, we can reduce reliance on foreign energy and create good-paying jobs across the country.”

“Renewable natural gas continues to gain momentum as a clean, affordable, and reliable fuel source. I’m proud to introduce legislation that will help incentivize the use of RNG and continue to aid the transition to clean energy while boosting our economy and creating good-paying jobs,” said Senator Warner.

“Achieving American energy independence demands bold, forward-thinking solutions—and Renewable Natural Gas (RNG) is one of the most promising,” said Representative Fitzpatrick. “By cutting emissions and modernizing transportation across our supply chains, RNG delivers both environmental progress and economic growth. Across the country, American workers and businesses are leading the charge to integrate this clean, domestic energy source. Our bipartisan, bicameral Renewable Natural Gas Incentive Act builds on that momentum with a targeted, pro-growth tax incentive to drive adoption, fuel innovation, and create jobs nationwide.”

“Heavy-duty trucks and buses are major contributors to pollution, accelerating climate change and worsening public health problems. By transitioning to renewable natural gas, we can reduce these harmful impacts while providing a cleaner, more affordable fuel option. Our tax credit will incentivize replacing outdated fleets with more sustainable alternatives, ensuring a healthier environment and a stronger economy without disrupting operations or increasing costs,” said Representative Sánchez.

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 weighted average carbon intensity (CI) value of California’s bio-CNG vehicle fuel portfolio in its Low Carbon Fuel Standard (LCFS) program is below zero at -212.13 gCO2e/MJ, offering the only carbon negative clean transportation outcome in the program.¹

“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 advancing the use of domestically produced RNG in commercial trucking; getting this credit passed in this Congress will promote energy security, American jobs, and fuel cost savings for businesses.”

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:

“This legislation will support the use of methane-reducing RNG and encourage clean, efficient transportation while building energy security in the United States,” said Mike Kiely, UPS President of Global Government Affairs. “RNG is a winning solution for UPS and 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 – reducing emissions with a very affordable U.S.-produced alternative fuel for fleets operating U.S.-made vehicles, while bring economic development to rural areas 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.

Access TTP’s Renewable Natural Gas Incentive Act one-pager HERE.

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. Figure is from Q3 2024, the most recent published quarterly results.

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.