II
119THCONGRESS
1
STSESSION S. 1252
To amend the Internal Revenue Code of 1986 to promote the increased
use of renewable natural gas, to reduce greenhouse gas emissions and
other harmful transportation-related emissions that contribute to poor
air quality, and to increase job creation and economic opportunity
throughout the United States.
IN THE SENATE OF THE UNITED STATES
APRIL2, 2025
Mr. T
ILLIS(for himself and Mr. WARNER) introduced the following bill; which
was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to promote
the increased use of renewable natural gas, to reduce
greenhouse gas emissions and other harmful transpor-
tation-related emissions that contribute to poor air qual-
ity, and to increase job creation and economic oppor-
tunity throughout the United States.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Renewable Natural 4
Gas Incentive Act of 2025’’. 5
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SEC. 2. INCREASED CREDIT FOR RENEWABLE NATURAL 1
GAS. 2
(a) I
NGENERAL.—Section 6426 of the Internal Rev-3
enue Code of 1986 is amended— 4
(1) in subsection (a)(2), by inserting ‘‘and (l)’’ 5
after ‘‘subsection (d)’’, and 6
(2) by adding at the end the following new sub-7
section: 8
‘‘(l) R
ENEWABLENATURALGASFUELCREDIT.— 9
‘‘(1) I
N GENERAL.—For purposes of this sec-10
tion, the renewable natural gas fuel credit is the 11
product of $1.00 and the number of gallons of re-12
newable natural gas or gasoline gallon equivalents of 13
a nonliquid renewable natural gas sold by the tax-14
payer for use as a fuel in a motor vehicle or motor-15
boat, sold by the taxpayer for use as a fuel in avia-16
tion, or so used by the taxpayer. 17
‘‘(2) R
ENEWABLE NATURAL GAS .—For pur-18
poses of this section, the term ‘renewable natural 19
gas’ means compressed or liquefied gas derived from 20
biomass (as defined in section 45K(c)(3))— 21
‘‘(A) which was produced by a person reg-22
istered under section 4101(a), and 23
‘‘(B) with respect to which the producer 24
has made a certification described in paragraph 25
(4). 26
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‘‘(3) TREATMENT OF BLENDED RENEWABLE 1
NATURAL GAS.— 2
‘‘(A) I
N GENERAL.—Under regulations 3
prescribed by the Secretary, a sale of blended 4
renewable natural gas shall be treated as a sale 5
of renewable natural gas fuel if— 6
‘‘(i) at the time the renewable natural 7
gas was blended with other compressed or 8
liquefied natural gas, the taxpayer had a 9
contract with the registered producer of 10
such renewable natural gas for the sale of 11
such gas for use as a fuel in a motor vehi-12
cle or motorboat, or for use as a fuel in 13
aviation, 14
‘‘(ii) such contract was entered into 15
before the sale of the blended renewable 16
natural gas and specifies the number of 17
gallons of renewable natural gas provided 18
for such purposes and the period for which 19
such contract is in effect, and 20
‘‘(iii) the registered producer of such 21
fuel provides to the taxpayer the certifi-22
cation described in paragraph (4). 23
‘‘(B) L
IMITATION.—The amount of blend-24
ed renewable natural gas treated as renewable 25
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natural gas under subparagraph (A) for any pe-1
riod shall not exceed the number of gallons of 2
renewable natural gas specified under subpara-3
graph (A)(ii) and certified by the producer 4
under paragraph (4) for such period. 5
‘‘(C) B
LENDED RENEWABLE NATURAL 6
GAS.—For purposes of this subsection, the term 7
‘blended renewable natural gas’ means com-8
pressed or liquefied natural gas which consists 9
of both renewable natural gas and other com-10
pressed or liquefied natural gas. 11
‘‘(4) C
ERTIFICATION.—A certification is de-12
scribed in this subparagraph if such certification— 13
‘‘(A) identifies the product produced and 14
the gallon equivalent of fuel acquired by the 15
taxpayer for a purpose described in paragraph 16
(1), and 17
‘‘(B) is provided such form and manner as 18
prescribed by the Secretary. 19
‘‘(5) G
ASOLINE GALLON EQUIVALENT .—For 20
purposes of this subsection, the term ‘gasoline gallon 21
equivalent’ means, with respect to any nonliquid re-22
newable natural gas, the amount of such fuel having 23
a Btu content of 124,800 (higher heating value). 24
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‘‘(6) TERMINATION.—This subsection shall not 1
apply to any sale or use for any period after Decem-2
ber 31, 2035.’’. 3
(b) A
PPLICATION OFOTHERRULES.— 4
(1) R
EGISTRATION.—The last sentence of sec-5
tion 6426(a) of the Internal Revenue Code of 1986 6
is amended by striking ‘‘subsections (d) and (e)’’ 7
and inserting ‘‘subsections (d), (e), and (l)’’. 8
(2) D
ENIAL OF DOUBLE BENEFIT .—Section 9
6426(h) of such Code is amended by striking ‘‘sub-10
section (d) or (e)’’ and inserting ‘‘subsection (d), (e), 11
or (l)’’. 12
(3) F
UEL MUST BE CONNECTED TO THE 13
UNITED STATES.—Section 6426(i) of such Code is 14
amended by inserting after paragraph (2) the fol-15
lowing new paragraph: 16
‘‘(3) R
ENEWABLE NATURAL GAS .—No credit 17
shall be determined under this section with respect 18
to any renewable natural gas which is produced out-19
side the United States for use as a fuel outside the 20
United States.’’. 21
(4) E
NERGY EQUIVALENCY .—Section 6426(j) of 22
such Code is amended— 23
(A) by inserting ‘‘or renewable natural 24
gas,’’ after ‘‘alternative fuel’’, and 25
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(B) by inserting ‘‘or gas’’ after ‘‘such a 1
fuel’’. 2
(c) P
AYMENTS.— 3
(1) I
N GENERAL.—Section 6427(e) of the Inter-4
nal Revenue Code of 1986 is amended by redesig-5
nating paragraphs (3) through (6) as paragraphs 6
(4) through (7), respectively, and by inserting after 7
paragraph (2) the following new paragraph: 8
‘‘(3) R
ENEWABLE NATURAL GAS .—If any per-9
son sells or uses renewable natural gas (as defined 10
in section 6426(k)(2)) for a purpose described in 11
section 6426(k)(1) in such person’s trade or busi-12
ness, the Secretary shall pay (without interest) to 13
such person an amount equal to the renewable nat-14
ural gas fuel credit with respect to such fuel.’’. 15
(2) T
ERMINATION.—Section 6427(e)(7) of such 16
Code, as redesignated by paragraph (1), is amended 17
by striking ‘‘and’’ at the end of subparagraph (D), 18
by striking the period at the end of subparagraph 19
(E) and inserting ‘‘, and’’, and by adding at the end 20
the following new subparagraph: 21
‘‘(F) any renewable natural gas (as defined 22
in section 6426(k)(2)) sold or used after De-23
cember 31, 2035.’’. 24
(3) C
ONFORMING AMENDMENTS .— 25
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(A) Section 6427(e)(4) of such Code, as 1
redesignated by paragraph (1), is amended— 2
(i) by striking ‘‘paragraph (1) or (2)’’ 3
and inserting ‘‘paragraph (1), (2), or (3)’’, 4
and 5
(ii) by striking ‘‘any mixture or alter-6
native fuel’’ and inserting ‘‘any mixture, 7
alternative fuel, or renewable natural gas’’. 8
(B) Section 6427(e)(6) of such Code, as 9
redesignated by paragraph (1), is amended by 10
striking ‘‘alternative fuel credit or alternative 11
fuel mixture credit’’ and inserting ‘‘alternative 12
fuel credit, alternative fuel mixture credit, or 13
renewable natural gas fuel credit’’. 14
(C) Section 6427(e)(6) of such Code, as 15
redesignated by paragraph (1), is amended— 16
(i) by striking ‘‘paragraph (1) or (2)’’ 17
and inserting ‘‘paragraph (1), (2), or (3)’’, 18
and 19
(ii) by striking ‘‘any mixture or alter-20
native fuel’’ and inserting ‘‘any mixture, 21
alternative fuel, or renewable natural gas’’. 22
(d) R
EGISTRATION.—Section 4101(a) of such Code 23
is amended— 24
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(1) by striking ‘‘and’’ before ‘‘every person pro-1
ducing second generation biofuel’’, and 2
(2) by inserting ‘‘, and every person producing 3
renewable natural gas (as defined in section 4
6426(k)(2))’’ after ‘‘(as defined in section 5
40(b)(6)(E))’’. 6
(e) E
FFECTIVEDATE.—The amendments made by 7
this section shall apply to fuel sold or used in calendar 8
quarters beginning after the date of the enactment of this 9
Act. 10
Æ
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