U.S. Reps. Introduce RNG Tax Credit score Invoice for Vehicles – Gasoline Smarts
The Renewable Pure Gasoline Incentive Act of 2023 would offer $1 per gallon tax credit score for dispensers of renewable pure fuel used for business vans.
Picture: Clear Power
U.S. Reps. Linda Sanchez (D-California) and Brian Fitzpatrick (R-Pennsylvania) launched a invoice that if handed would offer $1 per gallon tax credit score for dispensers of renewable pure fuel used for business vans and different motor autos for 10 years.
The Renewable Pure Gasoline Incentive Act of 2023 (H.R. 2448) updates laws (H.R. 9396) launched within the 117th Congress in 2022. It was created to encourage business truck and transit fleets to transform their autos from diesel to zero emission equal RNG, or biomethane.
The laws is supported by the Transferring Us Ahead coalition, and was applauded by NGVAmerica, a nationwide commerce affiliation of specialists within the clear transportation.
“Transitioning to renewable pure fuel will assist us curb the impacts of local weather change whereas offering a cleaner, extra inexpensive gasoline possibility for the industries that maintain America shifting,” mentioned Congresswoman Sanchez in a press launch. “This tax credit score will permit transit businesses, college districts, freight haulers, and package deal supply corporations to interchange ageing fleets with sustainable alternate options, all with out slowing manufacturing or growing prices.”
The tax code at present supplies a 50-cent credit score for pure fuel utilized in transportation together with pure fuel from renewable sources. This credit score, nevertheless, is lower than the credit score for renewable biodiesel which has constantly benefited from a $1 a gallon tax credit score and is at present solely obtainable by 2024, based on the press launch.
Extra About Renewable Pure Gasoline (RNG) in Trucking
Captured above floor from natural materials in agricultural, wastewater, landfill, or meals waste, RNG can produce carbon-negative outcomes when fueling on-road autos like short- and long-haul vans, transit buses, and refuse and recycling assortment autos.
California Air Assets Board information reviews the common carbon depth worth of California’s bio-CNG (compressed pure fuel) automobile gasoline portfolio in its Low Carbon Gasoline Normal (LCFS) program is under zero at -111.7 gCO2e/MJ – the one carbon damaging clear transportation gasoline within the CA LCFS program, based on NGVAmerica.
In 2021, 64% of all on-road gasoline used nationwide in pure fuel autos was from a renewable supply. That quantity is predicted to rise to shut to 70% for 2022, based on NGVAmerica.
