Breaking: 200+ groups unite, urging support for RNG tax credit! Explore the push for green incentives in transportation. Read full details below!
Guess what? More than 200 groups, led by Natural Gas Vehicles for America and the Moving Us Forward Coalition, got together and sent a letter on December 13. Who’s it to? Well, they want the House Committee on Ways and Means and the Senate Finance Committee to support the Renewable Natural Gas Incentive Act. This act is a big deal because it’s all about creating a $1 per gallon tax credit for selling renewable natural gas (RNG) used in transportation.
Let’s Dive into the Details
So, there’s this bill called H.R. 2448. Representatives Linda T. Sánchez, D-Calif., and Brian Fitzpatrick, R-Pa., brought it back to life in the U.S. House of Representatives on March 30. And get this, they tried it out before in both the House and the U.S. Senate last year.
What’s the Scoop on the RNG Tax Credit?
If this bill becomes law, the credit kicks in for fuel sold or used after December 31, 2023, and sticks around for a solid 10 years. That’s a pretty good deal. It’s building on another credit that gives 50 cents back for every gallon of natural gas used in transportation. But here’s the thing – that credit is set to expire in 2024. So, they’re kind of in a hurry to make this happen.
Where Does the RNG Tax Credit Work?
The cool part is that this new RNG tax credit isn’t picky. It’s up for grabs for RNG used in all sorts of things – motor vehicles, motorboats, and even aviation fuel. So, it’s like a credit that’s ready to party in different transportation scenes.
Talking Up the Environment
The letter these groups sent is all about saying RNG is awesome. Why? Because it’s a clean, cheap, reliable fuel made from waste right here in the USA. And get this – it can make heavy-duty vehicles environmentally friendly, depending on the stuff it’s made from. Vehicles using RNG have super low emissions, and filling them up with RNG gives them a bunch of performance perks.
Green Benefits Everywhere
RNG comes from organic stuff like agriculture, wastewater, landfills, or food waste. And when you use it to fuel trucks, buses, and garbage trucks, it’s like hitting the environmental jackpot. According to some California data, RNG is so good that it can even have a negative carbon footprint – that’s way better than most fuels out there.
Quick Impact on the Air
The letter shouts about how RNG can quickly make the air cleaner and cut down on greenhouse gases. And the best part? It could encourage farmers and ranchers to snag methane from animal waste. That’s like a double win for the environment.
The Squad Backing the Cause
Big names like Aemetis Biogas LLC, the American Biogas Council, Clean Fuels Energy Corp., and the Coalition for Renewable Natural Gas are part of the 200+ groups cheering for this. You can find the whole letter on the NGV America website.
In a nutshell, these groups are pumped up about the Renewable Natural Gas Incentive Act. If it becomes a law, it’s not just a RNG tax credit – it’s a game-changer for making our transportation more eco-friendly.
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