US senators propose tax credit for RNG

US senators Richard Burr and Mark Warner introduced bipartisan legislation July 20 that would provide a tax credit for heavy duty vehicles that use renewable natural gas.

The Renewable Natural Gas Incentive Act would create a $1/gallon tax credit for sellers of renewable natural gas used for transportation. Previously, RNG received a lower tax credit than similar transportation fuels, despite its ultra-low emissions.

“Renewable natural gas offers an affordable, reliable, and sustainable transportation fuel for industries across America,” said senator Burr, a North Carolina Republican. “This bill provides a tax credit to keep our country’s trucks and buses moving, lowering the cost of doing business while improving air quality, decreasing our reliance on foreign energy, and creating high-paying jobs.”

“Renewable natural gas is a clean, affordable, and reliable fuel source that can help lower emissions from heavy-duty vehicles,” Democratic senator Warner said. “I am proud to introduce legislation to incentivize investment in clean vehicles that will have a positive impact on our environment while significantly aiding in the transition to a clean energy economy.”

California-based Clean Energy Fuels, the largest provider of RNG in the US, including to fleets operated by UPS, Amazon and transit authorities in New York and Los Angeles, applauded the move.

“Renewable natural gas is gaining momentum as a transportation fuel because it tackles the issue of climate change immediately and cost effectively,” Clean Energy Fuels CEO Andrew Littlefair said. “But more should be done to encourage the use of this incredibly clean fuel and this legislation introduced by senators Warner and Burr does that.”