Sponsors (8)
The bill makes domestic renewable natural gas substantially more financially attractive and predictable for producers and buyers—encouraging lower‑carbon fuel use—while increasing federal spending, adding compliance rules, and potentially constraining supply in ways that could raise costs for taxpayers and some buyers.
Consumers and fleets using vehicle, boat, or aviation fuel could see lower effective fuel costs if sellers pass the $1.00/gallon RNG credit through to buyers.
Rural communities and energy-sector workers benefit from a stronger market signal for lower‑carbon fuels because the $1.00/gallon credit (available through 2035) makes RNG more competitive with fossil fuels.
Producers and sellers of RNG (including small businesses) receive a direct $1.00 per gallon (or GGE) subsidy on RNG sold or used as transportation fuel, increasing their revenue and improving project economics.
Taxpayers face increased federal outlays to fund the $1.00/gallon credit and associated refunds, which could raise the deficit or require budget offsets.
Limiting credits to domestically produced and certified RNG may exclude some suppliers and imports, constraining supply and potentially raising fuel and compliance costs for buyers and end users.
New registration, certification, and contract documentation requirements increase compliance burden and administrative costs for RNG producers and purchasers, hitting small producers harder.
Based on analysis of 2 sections of legislative text.
Creates a refundable $1.00/gal (or GGE) federal credit for renewable natural gas used or sold as transport fuel, effective 2026 through 2035.
Official title: To amend the Internal Revenue Code of 1986 to promote the increased use of renewable natural gas, to reduce greenhouse gas emissions and other harmful transportation-related emissions that contribute to poor air quality, and to increase job creation and economic opportunity throughout the United States.
Introduced April 2, 2025 by Brian K. Fitzpatrick · Last progress April 2, 2025
Creates a new federal tax credit of $1.00 per gallon (or gasoline-gallon-equivalent for nonliquid forms) for renewable natural gas (RNG) used or sold as fuel in motor vehicles, motorboats, or aircraft. The credit requires RNG producer registration, sets certification and blending rules, applies energy-equivalency and domestic-origin tests, and adds anti-double-benefit and payment/refund rules. The credit applies to fuel sold or used after December 31, 2025, and terminates after December 31, 2035.