Renewable Natural Gas Incentive Act of 2025

This bill encourages more use of renewable natural gas (RNG) to cut greenhouse gases and other harmful air pollution, while supporting jobs and economic opportunity. It would give a $1 credit for each gallon (or energy‑equivalent) of RNG used as fuel in cars, boats, or planes. Businesses that sell or use this fuel could get a direct payment from the government equal to the credit.

To qualify, the RNG must be compressed or liquefied gas made from biomass, produced by a registered producer, and include a simple certification. Blends with regular natural gas can count if there’s a pre‑sale contract and certification, but only up to the certified gallons. The credit runs through the end of 2035. There’s no credit for fuel produced outside the U.S. for use outside the U.S., and the bill blocks “double‑dipping” with other fuel credits. The changes would start the first full calendar quarter after it becomes law.

• Who is affected: RNG producers and fuel sellers; businesses that use RNG in vehicles, boats, or for aviation.
• What changes: $1-per-gallon (or equivalent) credit; option for a direct payment; blends can qualify with a contract and certification; no double‑dipping and no credit for fuel produced and used outside the U.S.
• When: Begins the first calendar quarter after enactment; ends after December 31, 2035.