Us Congress Senate Bill SB1252

Us Congress 2025-2026 Regular Session

• Introduced: 4/2/25
• Refer: 4/2/25

Caption

Renewable Natural Gas Incentive Act of 2025

Impact

The implications of SB1252 are significant as it facilitates the growth of the renewable natural gas industry, which is expected to contribute positively to environmental goals by lowering emissions. The bill proposes an increased credit for renewable natural gas sold for use as fuel in various transportation sectors, including motor vehicles, boats, and aviation. By promoting RNG usage, the legislation aims to create more jobs and enhance economic opportunities within the renewable energy sector, encouraging investment and innovation in clean technologies.

Summary

SB1252, known as the Renewable Natural Gas Incentive Act of 2025, was introduced to amend the Internal Revenue Code of 1986 with a focus on promoting the use of renewable natural gas (RNG). The bill seeks to increase the incentives for using RNG, intended to reduce greenhouse gas emissions and other detrimental transportation-related emissions that adversely affect air quality. Through various amendments, the bill enhances the existing fuel credit for RNG, offering a more favorable financial landscape for businesses engaged in RNG production and utilization.

Contention

While supporters of SB1252 argue it is a necessary step towards achieving energy sustainability and addressing climate change, there may be concerns regarding the clarity of RNG definitions and the certification process for producers. Furthermore, the provisions limiting credits to those based in the United States could spark discussions about trade and compliance within the global energy market. Critics may also highlight potential drawbacks related to market dependencies on government incentives, questioning the long-term viability of the RNG sector solely on policy-driven growth.