119-hr2596

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2596 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 2596

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 HOUSE OF REPRESENTATIVES

 April 2, 2025

Mr. Fitzpatrick (for himself and Ms. Sanchez) introduced the following 
 bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

 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 transportation-related emissions that contribute to poor air 
 quality, and to increase job creation and economic opportunity 
 throughout the United States.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Renewable Natural Gas Incentive Act 
of 2025''.

SEC. 2. INCREASED CREDIT FOR RENEWABLE NATURAL GAS.

    (a) In General.--

Section 6426 of the Internal Revenue Code of 1986 
is amended--

    (1) in subsection

    (a)

    (2) , by inserting ``and
            (l) '' after 
 ``subsection
            (d) '', and

    (2) by adding at the end the following new subsection:
 ``
            (l) Renewable Natural Gas Fuel Credit.--
 ``

    (1) In general.--For purposes of this section, the 
 renewable natural gas fuel credit is the product of $1.00 and 
 the number of gallons of renewable natural gas or gasoline 
 gallon equivalents of a nonliquid renewable natural gas sold by 
 the taxpayer for use as a fuel in a motor vehicle or motorboat, 
 sold by the taxpayer for use as a fuel in aviation, or so used 
 by the taxpayer.
 ``

    (2) Renewable natural gas.--For purposes of this section, 
 the term `renewable natural gas' means compressed or liquefied 
 gas derived from biomass (as defined in 

section 45K
            (c) (3) )--
 ``
        (A) which produced by a person registered under 
 

section 4101

    (a) , and
 ``
        (B) with respect to which the producer has made a 
 certification described in paragraph

    (4) .
 ``

    (3) Treatment of blended renewable natural gas.--
 ``
        (A) In general.--Under regulations prescribed by 
 the Secretary, a sale of blended renewable natural gas 
 shall be treated as a sale of renewable natural gas 
 fuel if--
 ``
            (i) at the time the renewable natural gas 
 was blended with other compressed or liquefied 
 natural gas, the taxpayer had a contract with 
 the registered producer of such renewable 
 natural gas for the sale of such gas for use as 
 a fuel in a motor vehicle or motorboat, or for 
 use as a fuel in aviation,
 ``
            (ii) such contract was entered into 
 before the sale of the blended renewable 
 natural gas and specifies the number of gallons 
 of renewable natural gas provided for such 
 purposes and the period for which such contract 
 is in effect, and
 ``
            (iii) the registered producer of such 
 fuel provides to the taxpayer the certification 
 described in paragraph

    (4) .
 ``
        (B) Limitation.--The amount of blended renewable 
 natural gas treated as renewable natural gas under 
 subparagraph
        (A) for any period shall not exceed the 
 number of gallons of renewable natural gas specified 
 under subparagraph
        (A)
            (ii) and certified by the 
 producer under paragraph

    (4) for such period.
 ``
            (C) Blended renewable natural gas.--For purposes 
 of this subsection, the term `blended renewable natural 
 gas' means compressed or liquefied natural gas which 
 consists of both renewable natural gas and other 
 compressed or liquefied natural gas.
 ``

    (4) Certification.--A certification is described in this 
 subparagraph if such certification--
 ``
        (A) identifies the product produced and the 
 gallon equivalent of fuel acquired by the taxpayer for 
 a purpose described in paragraph

    (1) , and
 ``
        (B) is provided such form and manner as 
 prescribed by the Secretary.
 ``

    (5) Gasoline gallon equivalent.--For purposes of this 
 subsection, the term `gasoline gallon equivalent' means, with 
 respect to any nonliquid renewable natural gas, the amount of 
 such fuel having a Btu content of 124,800 (higher heating 
 value).
 ``

    (6) Termination.--This subsection shall not apply to any 
 sale or use for any period after December 31, 2035.''.

    (b) Application of Other Rules.--

    (1) Registration.--The last sentence of 

section 6426

    (a) of 
 the Internal Revenue Code of 1986 is amended by striking 
 ``subsections
            (d) and

    (e) '' and inserting ``subsections
            (d) ,

    (e) , and
            (l) ''.

    (2) Denial of double benefit.--

Section 6426

    (h) of such Code 
 is amended by striking ``subsection
            (d) or

    (e) '' and inserting 
 ``subsection
            (d) ,

    (e) , or
            (l) ''.

    (3) Fuel must be connected to the united states.--

Section 6426
            (i) of such Code is amended by inserting after paragraph

    (2) the following new paragraph:
 ``

    (3) Renewable natural gas.--No credit shall be determined 
 under this section with respect to any renewable natural gas 
 which is produced outside the United States for use as a fuel 
 outside the United States.''.

    (4) Energy equivalency.--

Section 6426

    (j) of such Code is 
 amended--
        (A) by inserting ``or renewable natural gas,'' 
 after ``alternative fuel'', and
        (B) by inserting ``or gas'' after ``such a fuel''.
            (c) Payments.--

    (1) In general.--

Section 6427

    (e) of the Internal Revenue 
 Code of 1986 is amended by redesignating paragraphs

    (3) through

    (6) as paragraphs

    (4) through

    (7) , respectively, and by 
 inserting after paragraph

    (2) the following new paragraph:
 ``

    (3) Renewable natural gas.--If any person sells or uses 
 renewable natural gas (as defined in 

section 6426

    (k)

    (2) ) for a 
 purpose described in 

section 6426

    (k)

    (1) in such person's trade 
 or business, the Secretary shall pay (without interest) to such 
 person an amount equal to the renewable natural gas fuel credit 
 with respect to such fuel.''.

    (2) Termination.--

Section 6427

    (e)

    (7) of such Code, as 
 redesignated by paragraph

    (1) , is amended by striking ``and'' 
 at the end of subparagraph
            (D) , by striking the period at the 
 end of subparagraph
        (E) and inserting ``, and'', and by adding 
 at the end the following new subparagraph:
 ``
        (F) any renewable natural gas (as defined in 
 

section 6426

    (k)

    (2) ) sold or used after December 31, 
 2035.''.

    (3) Conforming amendments.--
        (A) Section 6427

    (e)

    (4) of such Code, as 
 redesignated by paragraph

    (1) , is amended--
            (i) by striking ``paragraph

    (1) or

    (2) '' 
 and inserting ``paragraph

    (1) ,

    (2) , or

    (3) '', 
 and
            (ii) by striking ``any mixture or 
 alternative fuel'' and inserting ``any mixture, 
 alternative fuel, or renewable natural gas''.
        (B) Section 6427

    (e)

    (6) of such Code, as 
 redesignated by paragraph

    (1) , is amended by striking 
 ``alternative fuel credit or alternative fuel mixture 
 credit'' and inserting ``alternative fuel credit, 
 alternative fuel mixture credit, or renewable natural 
 gas fuel credit''.
            (C) Section 6427

    (e)

    (6) of such Code, as 
 redesignated by paragraph

    (1) , is amended--
            (i) by striking ``paragraph

    (1) or

    (2) '' 
 and inserting ``paragraph

    (1) ,

    (2) , or

    (3) '', 
 and
            (ii) by striking ``any mixture or 
 alternative fuel'' and inserting ``any mixture, 
 alternative fuel, or renewable natural gas''.
            (d) Registration.--

Section 4101

    (a) of such Code is amended--

    (1) by striking ``and'' before ``every person producing 
 second generation biofuel'', and

    (2) by inserting ``, and every person producing renewable 
 natural gas (as defined in 

section 6426

    (k)

    (2) )'' after ``(as 
 defined in 

section 40

    (b)

    (6)
        (E) )''.

    (e) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after December 31, 2025.
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