July 25, 2022. Senators Richard Burr (R) from North Carolina and Mark Warner (D) from Virginia introduced the “Renewable Natural Gas Incentive Act of 2022” in the United States Senate, which provides a $1 per gallon tax credit for renewable natural gas (RNG) used as a transportation fuel. Andrew J. Littlefair, CEO and president of Clean Energy Fuels Corp., the country’s largest provider of RNG, issued a statement in support of the bill:
“Renewable natural gas is gaining momentum as a transportation fuel because it tackles the issue of climate change immediately and cost effectively. Large fleets like UPS, Amazon, Waste Management and the transit agencies in New York City and LA are operating tens of thousands of vehicles every day with it. But more should be done to encourage the use of this incredibly clean fuel and this legislation introduced by Senators Warner and Burr does that.
“Because RNG captures harmful greenhouse gases at the source – like dairies and other agriculture facilities – and at the vehicle, it is rated the cleanest fuel in the world, many times cleaner than electric vehicles. The tax credit in SB 4568 should give the transportation industry a turbo charge to make the switch to RNG, while adding much needed support for the country’s dairy farmers.
“The bipartisan approach to this legislation demonstrates the win-win-win nature of RNG – addressing climate change, providing an affordable alternative fuel for U.S. fleets, and helping our farmers. We applaud Senators Warner and Burr and encourage quick adoption.”
RNG is derived from capturing the biogenic methane produced by the decomposition of organic waste from dairies, landfills, and wastewater treatment plants. It can reduce climate-harming greenhouse gas emissions by at least 60 percent, and even up to 400 percent depending on the source of the RNG, making it a carbon-negative fuel.