July 27, 2022. NGVAmerica applauds the introduction of the Renewable Natural Gas Incentive Act by Senators Richard Burr (R-NC) and Mark Warner (D-VA), a bipartisan effort to provide a tax credit for heavy-duty vehicles that use renewable natural gas (RNG) to further support clean and efficient transportation across America.
“If we want clean air, we need ultra clean trucks and buses,” said NGVAmerica President Daniel Gage. “The introduction of this credit today signals how important clean and carbon-negative technology renewable natural gas vehicles are to growing our economy, improving our air quality, and enhancing our energy security while reducing our carbon footprint.”
The Renewable Natural Gas Incentive Act would create a $1.00 per gallon tax credit for dispensers of renewable natural gas used for transportation.
RNG vehicles are powered by American fuel, American technology, and American innovation. No commercially available, reliable, and scalable heavy-duty powertrain solution runs cleaner than renewable natural gas, or biomethane.
Captured above ground from organic material in agricultural, wastewater, landfill, or food waste, RNG can produce carbon-negative results when fueling on-road vehicles like short- and long-haul trucks, transit buses, and refuse and recycling collection vehicles. California Air Resources Board data confirms that the annual average carbon intensity (CI) value of California’s bio-CNG vehicle fuel portfolio in its Low Carbon Fuel Standard (LCFS) program was carbon negative and below zero at -44.41 gCO2e/MJ for calendar year 2021.
In 2021, 64 percent of all on-road fuel used nationwide in natural gas vehicles was from a renewable source.
NGVAmerica’s natural gas vehicle fleet and fueler members eagerly support the bill’s introduction: “The use of RNG is integral to UPS’s strategy to reduce our environmental impact and invest in our future,” said Mike Kiely, President of UPS’s U.S. Government Affairs. “This legislation will help to support the use of methane-reducing RNG and encourage clean and efficient transportation while building energy security. It’s a winning solution for the logistics industry.”
“WM supports this thoughtful approach to investing in vehicles and trucking fleets running on Renewable Natural Gas,” said John Skoutelas, Vice President, Government Affairs & Legal, WM (Waste Management). “WM is focused on working towards a more sustainable tomorrow through our action and investments to create a near-zero-emission fleet. This piece of legislation is critical towards helping the heavy-duty vehicle sector shift away from diesel vehicles and transition to a cleaner greener future.”
“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,” said Andrew Littlefair, CEO and President of Clean Energy Fuels Corp. “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.”
With this credit, America’s transit agencies can continue to invest in cleaner, commercially available and proven renewable natural gas buses without reducing service or increasing fares, school districts can provide exhaust-free rides to school by replacing their dirty legacy fleets, and freight haulers and package delivery companies can afford to replace aging diesel trucks with cleaner renewable natural gas trucks.