RNG Coalition welcomes One Big Beautiful Act

Renewable Natural Gas (RNG) Coalition has welcomed the inclusion of key clean energy incentives in the United States’ newly passed federal budget reconciliation package — officially titled the One Big Beautiful Big Act.

Passed narrowly by 218 votes to 214, the legislation includes crucial measures aimed at strengthening America’s clean energy economy, with significant implications for the renewable gas sector.

Geoff Dietz, Senior Director of Federal Government Affairs at the RNG Coalition, praised the legislation’s support for low-carbon fuels and highlighted its importance in driving long-term growth for renewable natural gas.

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"In particular, we welcome Congressional support for the extension of the Section 45Z Clean Fuel Production Tax Credit," said Dietz. "The credit will play a critical role in directing investment toward low-carbon fuels, based on lifecycle emissions performance."

Section 45Z provides a technology-neutral tax credit designed to incentivize the production of clean fuels. Set to take effect in 2025, the credit bases support levels on the greenhouse gas emissions performance of the fuel produced, effectively rewarding renewable fuels such as biomethane and RNG that can deliver substantial emissions reductions.

Dietz emphasized the need for swift regulatory guidance from the U.S. Department of Treasury to ensure effective implementation: "We look forward to working with Treasury on the implementation of several key provisions and would strongly encourage the agency to initiate that process soon. Clear, pragmatic, and expedient regulation will be critical to ensure that Section 45Z reflects the Congressional intent to accelerate sustainable development, deployment, and utilization of renewable gas."

The RNG Coalition underscored the vital role of renewable gas in the broader decarbonization strategy — not only to mitigate greenhouse gas emissions, but also to enhance energy security and deliver benefits to rural and urban communities alike.

"RNG is a vital tool to bolster energy reliability and affordability," Dietz added, "with wide-ranging benefits from farm communities in South Dakota to Staten Island, New York — home to the first RNG project in the U.S., launched over four decades ago."