Congress quietly subsidizes natural gas producers with $1-per-gallon climate credit
H.R. 2596 — Renewable Natural Gas Incentive Act of 2025 · Filed by Brian Fitzpatrick (R-PA) · 8 cosponsors · Introduced Apr 2, 2025 · Referred to committee
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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 full analysis lists 5 implications of this text.
Who stands to gain
renewable natural gas producers; natural gas utilities and distributors; energy infrastructure companies