Congress quietly subsidizes natural gas producers with $1-per-gallon climate credit

What it does

This bill creates a $1.00-per-gallon federal tax credit for renewable natural gas (RNG) — gas derived from biomass like agricultural waste and landfill methane — when used as fuel in vehicles, boats, or aircraft. The credit applies through 2035 and covers both pure RNG and blended RNG mixed with conventional natural gas, provided the producer is registered and certified. The government will pay the credit directly to sellers or users of the fuel.

Why we flagged it

The bill is functionally a $1/gallon production subsidy for renewable natural gas producers and fuel sellers, structured as a tax credit. While framed as climate policy, the mechanism directly enriches energy companies rather than consumers or the public.

What the text implies

• The credit flows to fuel producers and sellers, not consumers — drivers will not see lower prices unless market competition forces it, which is unlikely given the subsidy structure.
• RNG sourced from landfills and agricultural waste may compete with other waste-management and renewable-energy uses (e.g., biogas for electricity), potentially redirecting feedstock without net climate benefit.
• The $1/gallon credit is substantially higher than credits for other alternative fuels (e.g., ethanol at $0.51/gallon historically), suggesting potential oversubsidization relative to climate impact per dollar spent.
• Blended RNG provisions allow producers to claim credit for fuel that is only partially renewable, creating potential for inflated claims if blending ratios are not strictly monitored.
• No explicit requirement that RNG production actually reduce emissions compared to baseline — credit is available regardless of lifecycle carbon impact.

Who it affects

The bill may reduce emissions and create incentives for waste-to-energy infrastructure, benefiting public health and climate goals. However, the primary beneficiaries are energy companies and fuel producers, not ordinary consumers — the credit flows to sellers/producers, not drivers. The public benefit depends entirely on whether RNG deployment actually reduces emissions and whether the subsidy is cost-effective relative to other climate investments.

Who stands to gain

• renewable natural gas producers
• natural gas utilities and distributors
• energy infrastructure companies
• biomass and waste-to-energy operators

Named in the bill

Internal Revenue Code Section 6426, Internal Revenue Code Section 6427, Internal Revenue Code Section 4101, Section 45K (biomass definition), MPC (Marathon Petroleum), SEI (Seaboard Energy), EXE (Exelon), TRGP (Targa Resources), XOM (ExxonMobil)

Where it stands

10 cosponsors: 5 Democrats, 5 Republicans.

• Apr 2, 2025 — Introduced · Congress.gov: “Introduced in House”
• Apr 2, 2025 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

6 lobbying clients named this bill on 8 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $3,911,000 in lobbying spend. A filing names 8 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 82% of bills with at least one filing.

Brian Fitzpatrick, the sponsor, reported $2,362,211 in PAC receipts in the 2026 cycle. $8,500 of that came from 1 PAC tied to these lobbying clients.

• UPS (united Parcel Service) — $1,500,000 on 1 filing
• American Public Transportation Association — $1,100,000 on 2 filings
• American Trucking Associations — $720,000 on 1 filing
• Waste Management, Inc. — $370,000 on 2 filings
• The Transport Project Fka Ngvamerica — $141,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.