Sponsors (6)
The bill directs a sizeable per‑gallon subsidy to spur U.S. renewable natural gas production and reduce emissions, but it raises federal spending, creates some investment uncertainty with a sunset and domestic-only limits, and adds administrative compliance costs.
Small businesses, fuel producers, and companies that sell or use renewable natural gas (RNG) will receive a $1.00 per-gallon (or gasoline-gallon equivalent) payment for qualifying RNG sold or used, increasing revenues or reducing net fuel costs for those businesses.
Consumers and communities (especially rural areas and energy-sector customers) may see environmental benefits as the subsidy encourages greater production and use of RNG, which can lower greenhouse gas emissions compared with fossil natural gas.
Taxpayers and market participants gain clearer program rules — including registration, producer certification, contract limits, and territorial restrictions — which reduce risk of fraud and double-claiming of credits and can improve program integrity.
Taxpayers face higher federal spending because the $1.00 per-gallon subsidy increases government outlays and could add to the deficit or require offsets.
Producers, buyers, and investors confront reduced long-term certainty because the subsidy is limited to U.S.-produced/used RNG and sunsets on December 31, 2035, which may discourage long‑term investment and planning.
Producers and purchasers will incur additional compliance and administrative costs due to registration, Secretary-prescribed certification, and blended-RNG contracting rules, which could raise costs and complexity for businesses.
Based on analysis of 2 sections of legislative text.
Introduced April 2, 2025 by Brian K. Fitzpatrick · Last progress April 2, 2025
Creates a refundable federal fuel credit of $1.00 per gallon (or gasoline-gallon equivalent) for renewable natural gas (RNG) sold or used as fuel in motor vehicles, motorboats, or aircraft. The credit applies to RNG produced from biomass by a registered producer who provides a Secretary-approved certification, is limited to U.S.-produced/used fuel, and expires for sales or uses after December 31, 2035. The amendments take effect for fuel sold or used after December 31, 2025.