A bipartisan effort on Capitol Hill is breathing new life into the advancement of clean fuel alternatives, particularly renewable natural gas (RNG). The Renewable Natural Gas Incentive Act of 2025, introduced by Representatives Brian Fitzpatrick (R-PA) and Linda Sánchez (D-CA) along with Senators Thom Tillis (R-NC) and Mark Warner (D-VA), proposes a $1-per-gallon tax credit for RNG used or sold as fuel. The goal: to promote energy independence, economic growth, and a cleaner environment—particularly in the commercial transportation sector.
What the RNG Incentive Bill Proposes
The legislation would provide a financial incentive through 2035, encouraging the use of RNG as a motor vehicle fuel. It includes provisions for certified blended RNG and is modeled after the Alternative Fuels Tax Credit, giving access to credits for sellers and users alike. For public and tax-exempt organizations, the credit can be taken as a rebate if no excise tax is owed.
Supporters say this credit will:
- Reduce greenhouse gas emissions
- Boost job creation in clean energy
- Strengthen the domestic energy supply chain
- Provide economic relief to fleets adopting clean technology
The Case for RNG in Trucking
RNG is derived from organic waste, including agricultural and food waste, landfill emissions, and wastewater. It’s considered a carbon-negative fuel, especially when used in transportation. According to California Air Resources Board data, bio-compressed natural gas (bio-CNG) has the only carbon-negative clean transportation footprint in the state’s Low Carbon Fuel Standard.
As of December 2024, there are 442 RNG production facilities in the U.S. and Canada, and interest in RNG is growing among major trucking fleets like UPS and Waste Management. The release of Cummins’ X15N natural gas engine—offering diesel-like performance—has made RNG a more attractive option for long-haul fleets.
Industry Response and Benefits
Supporters, such as Daniel Gage, president of The Transport Project, argue that RNG can help reduce emissions while providing immediate operational cost savings. Though natural-gas-powered trucks can cost up to $65,000 more than diesel models, the tax credit helps offset the higher upfront investment.
RNG fuel is currently two to three times more expensive than fossil-based compressed natural gas. The proposed $1/gallon credit would help level the playing field while encouraging the phase-out of older, more polluting diesel vehicles.
Andrew Littlefair, CEO of Clean Energy Fuels, praised the bill, calling RNG the cleanest transportation fuel available and touting its affordability and domestic production. He emphasized its potential to provide economic development opportunities in rural areas and support U.S. farmers.
The RNG Incentive Act of 2025 demonstrates rare bipartisan consensus and signals a strong commitment to sustainability in the trucking industry. As fleets look for cleaner, cost-effective fuel solutions, this legislation could play a key role in accelerating the adoption of renewable natural gas across the U.S. transportation network.
Source:
https://www.truckinginfo.com/10238742/renewable-natural-gas-gets-a-bipartisan-boost-on-capitol-hill
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