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'Massive tailwind' from renewable natural gas as proponents seek new fuel tax credit

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Updated Apr 5, 2023

Renewable natural gas (RNG) has gained plenty of momentum as a transportation fuel and it may be poised to take off even more as proponents gear up for a lobbying session next month in Washington D.C., to further advocate for the fuel’s environmental and economic benefits over other alternative fuels like hydrogen and battery-electric.

Natural Gas Vehicles for America’s 2023 Public Policy Fly-In takes places April 18-19 at the nation’s capital where NGVA members will be meeting with members of Congress, their staffs and officials from the Departments of Energy, Transportation, Agriculture and the Environmental Protection Agency.

"We’ll be advancing our $1 per gallon RNG motor fuel tax credit bill plus [introducing] proposals for additions in the upcoming Farm Bill to promote and incentivize increased production of ag-based RNG harvesting and production for transportation use,” NGVA President Daniel Gage told CCJ.   

Gage said the current alternative fuel tax credit of 50 cents per gallon applies to both conventional and renewable natural gas. Doubling that credit is expected to create more demand for RNG and natural gas trucks, busses and other vehicles.

[Related: Cummins, Hyliion partnering on hybrid nat gas truck]