U.S. Reps. Brian Fitzpatrick (R-PA) and Linda Sanchez (D-CA) announced Friday they had introduced legislation that would provide sellers of renewable natural gas used for transportation with a tax credit.
The Renewable Natural Gas Incentive Act would provide a $1 per gallon tax credit on renewable natural gas, similar to the one already on the books for biodiesel. Renewable natural gas can be used in heavy-duty vehicles like buses and freight trucks to reduce greenhouse gas and particulate emissions.
“Renewable natural gas (RNG) is a clean, efficient, and affordable energy option that can reduce emissions among large supply-chain vehicles,” Fitzpatrick said. “The tax credit offered in the bipartisan Renewable Natural Gas Incentive Act will incentivize businesses to utilize RNG and further boost our economy and promote clean transportation.”
The legislation would create a 10-year tax credit for sellers of renewable natural gas, and increase the current tax credit of 50-cents already on the books for natural gas used in transportation, which includes natural gas from renewable sources. The Congress members said the tax credit would provide incentives for businesses to sell renewable natural gas, which would decrease emissions while allowing companies the opportunity to invest in clean energy technologies.
“Transitioning to renewable natural gas will help us curb the impacts of climate change while providing a cleaner, more affordable fuel option for the industries that keep America moving,” Sánchez said. “This tax credit will allow transit agencies, school districts, freight haulers, and package delivery companies to replace aging fleets with sustainable alternatives, all without slowing production or increasing costs. I am proud to introduce this bipartisan legislation that will protect our planet, drive down emissions, and keep our economy running.”
The legislation is supported by the Moving Us Forward coalition, which includes organizations like the American Trucking Association, Contract Transport Services, Natural Gas Vehicles for America and UPS.