Clean Energy Fuels Corp. applauds the passage by the U.S. Congress of an alternative fuel tax credit which will continue to support the expansion of renewable natural gas (RNG), the cleanest transportation fuel that is currently powering tens of thousands of large vehicles every day. President Trump is expected to soon sign the legislation which extends the credit through 2021 and applies to RNG in compressed natural gas (CNG) or liquefied natural gas (LNG) applications.
“This extension of the tax credit comes at a particularly opportune time as more fleets are realizing the tremendous impact that RNG is having on reducing carbon and the long-term impact it has on climate change,” said Andrew J. Littlefair, president and CEO of Clean Energy. “We applaud Congress and the President for taking this action and encourage the implementation of permanent measures to encourage further use of this superior and clean fuel.”
The legislation includes the Alternative Fuels Tax Credit, which extends the $0.50 per gallon fuel credit/payment for the use of RNG as a transportation fuel, and the Alternative Fuel Vehicle Refueling Property Credit, which extends the 30 percent/$30,000 investment tax credit for alternative vehicle refueling property.
RNG is derived from organic waste at dairies and other agricultural facilities and landfills. Carbon emissions captured from dairies and turned into a transportation fuel reduce the harmful effects on long-term climate change. As a result, the California Air Resources Board gives carbon-negative RNG a CI Score (gCO2e/MJ) of -250 (or lower) compared to 97 for diesel and 46 for electric batteries. The demand for this carbon-negative fuel has significantly accelerated over the last few years. Some of the largest heavy-duty fleets in the world such as UPS, Republic Services, New York Metropolitan Transportation Authority and LA Metro, among others, are currently and successfully operating tens of thousands of vehicles on RNG.
Natural gas vehicles are powered by American fuel, American technology, and American innovation. No commercially-available heavy-duty powertrain solution runs cleaner than natural gas, and the cleanest heavy-duty truck engine in the world is powered by natural gas.
