Representatives Linda Sanchez (D-CA) and Brian Fitzpatrick (R-PA) have introduced the H.R. 2448, the Renewable Natural Gas Incentive Act of 2023, a bipartisan effort to provide a tax credit for biomethane, which can be used in heavy-duty vehicles like buses and freight trucks to immediately reduce greenhouse gas and particulate emissions while further supporting clean and efficient transportation across the country.
The new Renewable Natural Gas Incentive Act would create a $1.00 per gallon tax credit for sellers of renewable natural gas used for transportation for 10 years, allowing businesses to maximize the credit’s effectiveness to reduce their emissions and encouraging fleets to convert their vehicles from diesel to biomethane.
The new bill updates legislation introduced in the 117th Congress by the two U.S. House NGV leaders last year – H.R. 9396, legislation that complemented a similar Senate bill – S. 4568 – introduced by then Senator Richard Burr (R-NC) and Senator Mark Warner (D-VA).
“Transitioning to renewable natural gas will help us curb the impacts of climate change while providing a cleaner, more affordable fuel option for the industries that keep America moving,” said Congresswoman Linda T. Sánchez. “This tax credit will allow transit agencies, school districts, freight haulers, and package delivery companies to replace aging fleets with sustainable alternatives, all without slowing production or increasing costs. I am proud to introduce this bipartisan legislation that will protect our planet, drive down emissions, and keep our economy running.”
“Renewable natural gas is a clean, efficient, and affordable energy option that can reduce emissions among large supply-chain vehicles,” said Congressman Fitzpatrick. “The tax credit offered in the bipartisan Renewable Natural Gas Incentive Act will incentivize businesses to utilize renewable gas and further boost our economy and promote clean transportation. I am proud to co-lead this legislation alongside Congresswoman Sánchez.”
“If we want clean air, we need ultra clean trucks and buses,” said NGVAmerica President Daniel Gage. “This introduction signals how important clean and carbon-negative renewable natural gas vehicles are to growing our economy, improving our air quality, and enhancing our energy security while reducing our carbon footprint. We are fortunate to have bipartisan, and soon bicameral support in getting this credit passed into law in the 118th Congress.”
The legislation is supported by the Moving Us Forward coalition, a group of organizations that includes: American Biogas Council, American Farm Bureau Federation, American Trucking Association, ANGI Energy, California Dairies, Clean Energy Fuels, Contract Transport Services, Demi, Hexagon Agility, NGVAmerica, National Milk Producers Federation, OPAL Fuels, Tulsa Gas Technologies, UPS and WM.
Source: Congresswoman Linda Sanchez/NGVAmerica
