Sponsors (8)
The bill boosts domestic renewable natural gas production and uptake through a sizable per‑gallon subsidy and clearer program rules, while shifting significant federal costs and adding administrative and market restrictions that could raise prices or burdens for some buyers and taxpayers.
Domestic RNG producers and sellers will receive a $1.00 per gallon (or GGE) credit for RNG sold or used as transportation fuel through 2035, directly increasing revenue and financial support for the domestic RNG industry.
Consumers and fleets that buy RNG (vehicle, boat, or aviation fuel) could see lower effective fuel costs if sellers pass through the credit savings, reducing operating costs for transportation users.
Rural communities, energy workers, and others are incentivized to adopt lower‑carbon fuels because the subsidy makes RNG more competitive with fossil fuels, supporting emissions reductions and cleaner fuel deployment.
Taxpayers (current and future) will bear increased federal outlays to fund the $1.00/gal credit (paid as refunds without interest), raising deficit risk or requiring budget offsets and reducing pressure on recipients to accept phasedown, thereby increasing net fiscal cost.
Small RNG producers and purchasers face higher administrative and compliance burdens because new registration, certification, and contract documentation requirements increase paperwork, time, and costs.
Buyers who rely on non‑certified or imported RNG (including some fleets and suppliers) may face reduced options or higher costs because credits are limited to domestically produced and specifically certified volumes.
Based on analysis of 2 sections of legislative text.
Creates a $1.00 per gallon (or gasoline‑gallon‑equivalent) federal credit for renewable natural gas used as fuel in motor vehicles, motorboats, or aviation and adds related registration and compliance rules.
Creates a new federal fuel credit that pays $1.00 per gallon (or gasoline-gallon-equivalent for nonliquid forms) for renewable natural gas (RNG) when sold or used as fuel in motor vehicles, motorboats, or aircraft. It requires RNG producers to register, sets certification and blending rules, applies anti‑double‑benefit and domestic‑origin checks, extends certain refund/payment rules, and ends the credit after December 31, 2035. The credit, added to existing fuel tax credit rules, becomes effective for fuel sold or used after December 31, 2025, and includes definitions for energy equivalency so nonliquid RNG can be measured against a gasoline-gallon-equivalent standard.
Introduced April 2, 2025 by Brian K. Fitzpatrick · Last progress April 2, 2025