New Renewable Natural Gas Bill Gets Backing in the House & Senate

New Bill Offers $1.00 Credit for Renewable Natural Gas Use

RNG Incentive Could Cut Emissions and Create U.S. Jobs

A new bill in Congress would give a $1.00-per-gallon tax credit to companies that use renewable natural gas (RNG) as fuel. The bill is called the Renewable Natural Gas Incentive Act of 2025. It is backed by both Republicans and Democrats.

The goal is to reduce pollution, support clean energy, and create jobs. The credit would apply to RNG used in trucks, buses, boats, and airplanes.

Who Supports the Bill

The bill was introduced by Representative Brian Fitzpatrick from Pennsylvania and Representative Linda Sánchez from California. In the Senate, it is led by Senators Thom Tillis of North Carolina and Mark Warner of Virginia.

These lawmakers believe RNG is a smart and clean fuel. They say it will help the U.S. become more energy independent.

What Renewable Natural Gas Is and Why It Matters

RNG is a gas made from waste, like food scraps or animal manure. It is turned into a fuel that can power vehicles. RNG burns cleaner than diesel and produces fewer greenhouse gases.

This new credit would help more companies use RNG. It would also keep energy jobs and fuel production in the U.S. That’s because the bill only supports RNG that is made and used inside the country.

Details of the Renewable Natural Gas Tax Credit

The bill gives a $1.00 credit for every gallon of RNG used as fuel. It also includes nonliquid RNG, which is measured in “gasoline gallon equivalents.” This is based on energy content.

RNG that is mixed with other types of natural gas can still qualify. To do this, the producer must be registered with the IRS. They must also give the buyer a document that shows how much RNG is in the blend.

Only RNG that meets these rules will get the credit.

Lawmakers Explain Their Support

Many leaders shared why they support the bill.

“Achieving American energy independence demands bold, forward-thinking solutions—and Renewable Natural Gas (RNG) is one of the most promising,” said Rep. Fitzpatrick. “By cutting emissions and modernizing transportation across our supply chains, RNG delivers both environmental progress and economic growth. Across the country, American workers and businesses are leading the charge to integrate this clean, domestic energy source. Our bipartisan, bicameral Renewable Natural Gas Incentive Act builds on that momentum with a targeted, pro-growth tax incentive to drive adoption, fuel innovation, and create jobs nationwide.”

Rep. Sánchez focused on health and the environment. “Heavy-duty trucks and buses are major contributors to pollution, accelerating climate change and worsening public health problems. By transitioning to renewable natural gas, we can reduce these harmful impacts while providing a cleaner, more affordable fuel option. Our tax credit will incentivize replacing outdated fleets with more sustainable alternatives, ensuring a healthier environment and a stronger economy without disrupting operations or increasing costs,” she said.

Senator Tillis talked about reducing foreign energy use. “The Renewable Natural Gas Incentive Act is a smart investment in America’s energy independence and economic growth,” he said. “By expanding domestically produced renewable natural gas, we can reduce reliance on foreign energy and create good-paying jobs across the country.”

Senator Warner added, “Renewable natural gas continues to gain momentum as a clean, affordable, and reliable fuel source. I’m proud to introduce legislation that will help incentivize the use of RNG and continue to aid the transition to clean energy while boosting our economy and creating good-paying jobs.”

Trucking Industry Adds Support

Daniel Gage, president of The Transport Project, said this bill would help commercial fleets.

“Transitioning to RNG-fueled vehicles can save money and reduce emissions, and deploys new, affordable, cleaner, and compliant technology without delay and without compromising business operations,” said Gage. “More and more commercial fleets are discovering how allocating RNG as transportation fuel can help achieve more sustainable results immediately. We are fortunate to have bipartisan, bicameral support in advancing the use of domestically produced RNG in commercial trucking; getting this credit passed in this Congress will promote energy security, American jobs, and fuel cost savings for businesses.”

How the Renewable Natural Gas Credit Works

The tax credit lasts until the end of 2035. This gives companies time to plan and invest in RNG.

Companies that use RNG in their business could get a payment from the IRS. This applies even if they do not owe taxes. The payment would match the value of the fuel credit.

All fuel must be made and used in the United States. If it’s made or used outside the U.S., it does not qualify.

Simple Rules for Eligibility

To get the credit, the fuel producer must be registered. They must also provide a form that shows how much fuel was sold and how it was used.

Blended fuels must meet strict rules. The contract must list how much RNG was used and when. That way, the government knows the fuel meets the law’s requirements.

Why This Matters for Trucking

Many trucking fleets are looking for cleaner, cheaper fuel. RNG could be a good option. It works with current engine technology and is already in use in some places.

With this credit, more fleets may switch to RNG. That could help reduce emissions and lower fuel costs.

What Happens Next

The bill is now with committees in the House and Senate. If passed, it could help the U.S. move to cleaner fuels. It could also support jobs and lower emissions.

Lawmakers say this is a step toward a cleaner, stronger, and more secure energy future.