Sponsors (2)
The bill offers a sizable per-gallon payment to make domestically produced RNG competitive and support local projects, but it raises federal costs and adds administrative and investment uncertainty that could offset some benefits.
Producers and sellers of renewable natural gas (and fleet operators who buy it) receive a $1.00 refundable payment per certified gasoline-gallon-equivalent, making RNG financially competitive with conventional fuels and likely lowering fuel costs for businesses that adopt it.
Domestic RNG production and use are prioritized by excluding RNG produced/used entirely outside the U.S., supporting local waste-to-fuel projects and strengthening regional energy supply and resilience.
The bill sets registration and certification rules (producer registration, Secretary-prescribed certification, blend documentation) to limit fraud and improve program integrity for the refundable payments.
Refundable $1/GGE payments increase federal outlays, which could widen budget deficits or require spending cuts or new revenues to offset the cost.
The program creates extra administrative and compliance burdens (registration, certification, documentation, and measurement disputes over gasoline-gallon-equivalents and energy adjustments), raising costs for producers, purchasers, and adding complexity for taxpayers and regulators.
Capping eligibility for the refundable payment to sales/uses before January 1, 2036 creates uncertainty for long-term investors in RNG infrastructure, potentially discouraging multi-decade projects.
Based on analysis of 2 sections of legislative text.
Introduced April 2, 2025 by Thomas Roland Tillis · Last progress April 2, 2025
Creates a new federal refundable payment of $1.00 per gallon (or gasoline-gallon-equivalent) for qualifying sales or uses of renewable natural gas (RNG) when used as motor-vehicle, motorboat, or aviation fuel. The credit is available only for RNG produced and used in the United States, requires producer registration and certification, follows existing fuel-credit rules to prevent double benefits, and expires for sales/uses after December 31, 2035.