December 2, 2022. NGVAmerica applauds the introduction by Representatives Linda Sanchez (D-CA) and Brian Fitzpatrick (R-PA) of the Renewable Natural Gas Incentive Act, a bipartisan effort to provide a $1.00 per gallon tax credit for motor vehicles that use renewable natural gas (RNG) to further support clean and efficient transportation across America. The bill complements a similar bill – S. 4568 – introduced earlier this year in the U.S. Senate by Senators Richard Burr (R-NC) and Mark Warner (D-VA).
“If we want clean air, we need ultra clean trucks and buses,” said NGVAmerica President Daniel Gage. “Today’s 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 have bipartisan, bicameral interest in getting this credit passed into law.”
The Renewable Natural Gas Incentive Act would create a $1.00 per gallon tax credit for dispensers of renewable natural gas used for transportation, thereby encouraging commercial truck and transit fleets to convert their vehicles from diesel to zero emission equivalent RNG, or biomethane.
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, UPS President of 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.”
“Because RNG captures harmful greenhouse gasses 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.