Clean Energy Fuels supports US Senate Bill providing tax credit for RNG

Nasdaq-listed renewable natural gas (RNG) company Clean Energy Fuels welcomed the introduction of US Senate Bill S. 4389 on May 23, which provides a $1.00 per gallon tax credit for the use of RNG as a transportation fuel.

The bill was introduced by Senators Mark Warner (D-VA) and Thom Tillis (R-NC). A companion bill was introduced in the US House earlier in the session by Representatives Linda Sanchez (D-CA) and Brian Fitzpatrick (R-PA).

Andrew J. Littlefair, CEO of the California-based Clean Energy Fuels, issued a statement in support of the “Renewable Natural Gas Incentive Act of 2024”:

“No other fuel eliminates greenhouse gas emissions both at the source and on the road the way RNG does, giving it the best carbon-intensity score of any fuel available in significant quantities. On top of that, the production of it is giving an economic lift to the country’s agricultural industry, particularly dairies, and creating jobs in rural areas,” Littlefair said.

“We applaud the bipartisan way the RNG Incentive Act of 2024 began with strong authors in the Senate and the House and encourage continued support as it works its way through to become law of the land,” he added.

RNG is derived from capturing the biogenic methane produced by the decomposition of organic waste from dairies, landfills, and wastewater treatment plants. It can reduce climate-harming greenhouse gas emissions by over 300%, depending on the source of the RNG, making it a negative carbon-intensity fuel, the company said.

Clean Energy Fuels operates a vast network of fueling stations across the US and Canada, as well as RNG production facilities at dairy farms. In April this year, the company launched its third farm-based RNG production facility in the US Midwest.