Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB1252 Compare Versions

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Old	New	Differences
1	1	II
2	2	119THCONGRESS
3	3	1
4	4	STSESSION S. 1252
5	5	To amend the Internal Revenue Code of 1986 to promote the increased
6	6	use of renewable natural gas, to reduce greenhouse gas emissions and
7	7	other harmful transportation-related emissions that contribute to poor
8	8	air quality, and to increase job creation and economic opportunity
9	9	throughout the United States.
10	10	IN THE SENATE OF THE UNITED STATES
11	11	APRIL2, 2025
12	12	Mr. T
13	13	ILLIS(for himself and Mr. WARNER) introduced the following bill; which
14	14	was read twice and referred to the Committee on Finance
15	15	A BILL
16	16	To amend the Internal Revenue Code of 1986 to promote
17	17	the increased use of renewable natural gas, to reduce
18	18	greenhouse gas emissions and other harmful transpor-
19	19	tation-related emissions that contribute to poor air qual-
20	20	ity, and to increase job creation and economic oppor-
21	21	tunity throughout the United States.
22	22	Be it enacted by the Senate and House of Representa-1
23	23	tives of the United States of America in Congress assembled, 2
24	24	SECTION 1. SHORT TITLE. 3
25	25	This Act may be cited as the ‘‘Renewable Natural 4
26	26	Gas Incentive Act of 2025’’. 5
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29	29	•S 1252 IS
30	30	SEC. 2. INCREASED CREDIT FOR RENEWABLE NATURAL 1
31	31	GAS. 2
32	32	(a) I
33	33	NGENERAL.—Section 6426 of the Internal Rev-3
34	34	enue Code of 1986 is amended— 4
35	35	(1) in subsection (a)(2), by inserting ‘‘and (l)’’ 5
36	36	after ‘‘subsection (d)’’, and 6
37	37	(2) by adding at the end the following new sub-7
38	38	section: 8
39	39	‘‘(l) R
40	40	ENEWABLENATURALGASFUELCREDIT.— 9
41	41	‘‘(1) I
42	42	N GENERAL.—For purposes of this sec-10
43	43	tion, the renewable natural gas fuel credit is the 11
44	44	product of $1.00 and the number of gallons of re-12
45	45	newable natural gas or gasoline gallon equivalents of 13
46	46	a nonliquid renewable natural gas sold by the tax-14
47	47	payer for use as a fuel in a motor vehicle or motor-15
48	48	boat, sold by the taxpayer for use as a fuel in avia-16
49	49	tion, or so used by the taxpayer. 17
50	50	‘‘(2) R
51	51	ENEWABLE NATURAL GAS .—For pur-18
52	52	poses of this section, the term ‘renewable natural 19
53	53	gas’ means compressed or liquefied gas derived from 20
54	54	biomass (as defined in section 45K(c)(3))— 21
55	55	‘‘(A) which was produced by a person reg-22
56	56	istered under section 4101(a), and 23
57	57	‘‘(B) with respect to which the producer 24
58	58	has made a certification described in paragraph 25
59	59	(4). 26
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62	62	•S 1252 IS
63	63	‘‘(3) TREATMENT OF BLENDED RENEWABLE 1
64	64	NATURAL GAS.— 2
65	65	‘‘(A) I
66	66	N GENERAL.—Under regulations 3
67	67	prescribed by the Secretary, a sale of blended 4
68	68	renewable natural gas shall be treated as a sale 5
69	69	of renewable natural gas fuel if— 6
70	70	‘‘(i) at the time the renewable natural 7
71	71	gas was blended with other compressed or 8
72	72	liquefied natural gas, the taxpayer had a 9
73	73	contract with the registered producer of 10
74	74	such renewable natural gas for the sale of 11
75	75	such gas for use as a fuel in a motor vehi-12
76	76	cle or motorboat, or for use as a fuel in 13
77	77	aviation, 14
78	78	‘‘(ii) such contract was entered into 15
79	79	before the sale of the blended renewable 16
80	80	natural gas and specifies the number of 17
81	81	gallons of renewable natural gas provided 18
82	82	for such purposes and the period for which 19
83	83	such contract is in effect, and 20
84	84	‘‘(iii) the registered producer of such 21
85	85	fuel provides to the taxpayer the certifi-22
86	86	cation described in paragraph (4). 23
87	87	‘‘(B) L
88	88	IMITATION.—The amount of blend-24
89	89	ed renewable natural gas treated as renewable 25
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92	92	•S 1252 IS
93	93	natural gas under subparagraph (A) for any pe-1
94	94	riod shall not exceed the number of gallons of 2
95	95	renewable natural gas specified under subpara-3
96	96	graph (A)(ii) and certified by the producer 4
97	97	under paragraph (4) for such period. 5
98	98	‘‘(C) B
99	99	LENDED RENEWABLE NATURAL 6
100	100	GAS.—For purposes of this subsection, the term 7
101	101	‘blended renewable natural gas’ means com-8
102	102	pressed or liquefied natural gas which consists 9
103	103	of both renewable natural gas and other com-10
104	104	pressed or liquefied natural gas. 11
105	105	‘‘(4) C
106	106	ERTIFICATION.—A certification is de-12
107	107	scribed in this subparagraph if such certification— 13
108	108	‘‘(A) identifies the product produced and 14
109	109	the gallon equivalent of fuel acquired by the 15
110	110	taxpayer for a purpose described in paragraph 16
111	111	(1), and 17
112	112	‘‘(B) is provided such form and manner as 18
113	113	prescribed by the Secretary. 19
114	114	‘‘(5) G
115	115	ASOLINE GALLON EQUIVALENT .—For 20
116	116	purposes of this subsection, the term ‘gasoline gallon 21
117	117	equivalent’ means, with respect to any nonliquid re-22
118	118	newable natural gas, the amount of such fuel having 23
119	119	a Btu content of 124,800 (higher heating value). 24
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122	122	•S 1252 IS
123	123	‘‘(6) TERMINATION.—This subsection shall not 1
124	124	apply to any sale or use for any period after Decem-2
125	125	ber 31, 2035.’’. 3
126	126	(b) A
127	127	PPLICATION OFOTHERRULES.— 4
128	128	(1) R
129	129	EGISTRATION.—The last sentence of sec-5
130	130	tion 6426(a) of the Internal Revenue Code of 1986 6
131	131	is amended by striking ‘‘subsections (d) and (e)’’ 7
132	132	and inserting ‘‘subsections (d), (e), and (l)’’. 8
133	133	(2) D
134	134	ENIAL OF DOUBLE BENEFIT .—Section 9
135	135	6426(h) of such Code is amended by striking ‘‘sub-10
136	136	section (d) or (e)’’ and inserting ‘‘subsection (d), (e), 11
137	137	or (l)’’. 12
138	138	(3) F
139	139	UEL MUST BE CONNECTED TO THE 13
140	140	UNITED STATES.—Section 6426(i) of such Code is 14
141	141	amended by inserting after paragraph (2) the fol-15
142	142	lowing new paragraph: 16
143	143	‘‘(3) R
144	144	ENEWABLE NATURAL GAS .—No credit 17
145	145	shall be determined under this section with respect 18
146	146	to any renewable natural gas which is produced out-19
147	147	side the United States for use as a fuel outside the 20
148	148	United States.’’. 21
149	149	(4) E
150	150	NERGY EQUIVALENCY .—Section 6426(j) of 22
151	151	such Code is amended— 23
152	152	(A) by inserting ‘‘or renewable natural 24
153	153	gas,’’ after ‘‘alternative fuel’’, and 25
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156	156	•S 1252 IS
157	157	(B) by inserting ‘‘or gas’’ after ‘‘such a 1
158	158	fuel’’. 2
159	159	(c) P
160	160	AYMENTS.— 3
161	161	(1) I
162	162	N GENERAL.—Section 6427(e) of the Inter-4
163	163	nal Revenue Code of 1986 is amended by redesig-5
164	164	nating paragraphs (3) through (6) as paragraphs 6
165	165	(4) through (7), respectively, and by inserting after 7
166	166	paragraph (2) the following new paragraph: 8
167	167	‘‘(3) R
168	168	ENEWABLE NATURAL GAS .—If any per-9
169	169	son sells or uses renewable natural gas (as defined 10
170	170	in section 6426(k)(2)) for a purpose described in 11
171	171	section 6426(k)(1) in such person’s trade or busi-12
172	172	ness, the Secretary shall pay (without interest) to 13
173	173	such person an amount equal to the renewable nat-14
174	174	ural gas fuel credit with respect to such fuel.’’. 15
175	175	(2) T
176	176	ERMINATION.—Section 6427(e)(7) of such 16
177	177	Code, as redesignated by paragraph (1), is amended 17
178	178	by striking ‘‘and’’ at the end of subparagraph (D), 18
179	179	by striking the period at the end of subparagraph 19
180	180	(E) and inserting ‘‘, and’’, and by adding at the end 20
181	181	the following new subparagraph: 21
182	182	‘‘(F) any renewable natural gas (as defined 22
183	183	in section 6426(k)(2)) sold or used after De-23
184	184	cember 31, 2035.’’. 24
185	185	(3) C
186	186	ONFORMING AMENDMENTS .— 25
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189	189	•S 1252 IS
190	190	(A) Section 6427(e)(4) of such Code, as 1
191	191	redesignated by paragraph (1), is amended— 2
192	192	(i) by striking ‘‘paragraph (1) or (2)’’ 3
193	193	and inserting ‘‘paragraph (1), (2), or (3)’’, 4
194	194	and 5
195	195	(ii) by striking ‘‘any mixture or alter-6
196	196	native fuel’’ and inserting ‘‘any mixture, 7
197	197	alternative fuel, or renewable natural gas’’. 8
198	198	(B) Section 6427(e)(6) of such Code, as 9
199	199	redesignated by paragraph (1), is amended by 10
200	200	striking ‘‘alternative fuel credit or alternative 11
201	201	fuel mixture credit’’ and inserting ‘‘alternative 12
202	202	fuel credit, alternative fuel mixture credit, or 13
203	203	renewable natural gas fuel credit’’. 14
204	204	(C) Section 6427(e)(6) of such Code, as 15
205	205	redesignated by paragraph (1), is amended— 16
206	206	(i) by striking ‘‘paragraph (1) or (2)’’ 17
207	207	and inserting ‘‘paragraph (1), (2), or (3)’’, 18
208	208	and 19
209	209	(ii) by striking ‘‘any mixture or alter-20
210	210	native fuel’’ and inserting ‘‘any mixture, 21
211	211	alternative fuel, or renewable natural gas’’. 22
212	212	(d) R
213	213	EGISTRATION.—Section 4101(a) of such Code 23
214	214	is amended— 24
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217	217	•S 1252 IS
218	218	(1) by striking ‘‘and’’ before ‘‘every person pro-1
219	219	ducing second generation biofuel’’, and 2
220	220	(2) by inserting ‘‘, and every person producing 3
221	221	renewable natural gas (as defined in section 4
222	222	6426(k)(2))’’ after ‘‘(as defined in section 5
223	223	40(b)(6)(E))’’. 6
224	224	(e) E
225	225	FFECTIVEDATE.—The amendments made by 7
226	226	this section shall apply to fuel sold or used in calendar 8
227	227	quarters beginning after the date of the enactment of this 9
228	228	Act. 10
229	229	Æ
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