Bi-Partisan Bill Introduced in U.S. Senate to Encourage the Use of Ultra-Low Carbon RNG in Transportation
The U.S. Senate introduced Bill S. 4389, providing a $1.00 per gallon tax credit for using renewable natural gas (RNG) as a transportation fuel. This bill, backed by Senators Mark Warner and Thom Tillis, follows a similar House bill by Representatives Linda Sanchez and Brian Fitzpatrick. Clean Energy Fuels Corp. (NASDAQ: CLNE) CEO Andrew J. Littlefair supports the bill, highlighting RNG's growing acceptance in heavy-duty vehicle fleets and its potential to significantly reduce greenhouse gas emissions. RNG production benefits the agricultural industry, particularly dairies, and creates rural jobs. The bill seeks to further boost RNG's adoption, leveraging existing RNG infrastructure and new RNG-compatible engines from Cummins.
- U.S. Senate introduced a $1.00 per gallon tax credit for RNG fuel (Bill S. 4389).
- Bipartisan support enhances the bill’s legislative success potential.
- RNG significantly reduces greenhouse gas emissions, with over 300% reduction.
- RNG production supports the agricultural industry and creates rural jobs.
- A new RNG-compatible engine by Cummins is entering the market this summer, boosting RNG adoption.
- The bill's benefits are contingent on legislative approval, which is not guaranteed.
- RNG infrastructure, though growing, still requires significant expansion to meet broader adoption goals.
- The impact on CLNE's stock is dependent on regulatory and market responses to the bill.
Insights
The introduction of Senate Bill S. 4389, which proposes a
The potential tax credit for RNG presents a valuable stimulus for the market, particularly beneficial for companies like Clean Energy Fuels Corp. (NASDAQ: CLNE). This incentive could accelerate the adoption of RNG among fleet operators who are already utilizing medium- and heavy-duty vehicles powered by RNG. It could also encourage new entrants to convert their fleets, which in turn would drive up demand for RNG fueling infrastructure. This uptick may lead to positive financial outcomes for businesses involved in the RNG supply chain, from production to distribution. Additionally, with Cummins releasing a larger engine compatible with RNG, the market seems primed for growth, provided the bill passes.
The financial implications of the proposed $1.00 per gallon tax credit for RNG are noteworthy. For Clean Energy Fuels Corp., the leading RNG provider in the country, this bill could significantly boost revenues by increasing demand. The economic incentives could also attract investments into RNG infrastructure and related technology developments, further cementing RNG's role in the market. However, investors should consider the legislative risks and the dependent nature of the bill's benefits on its successful passage and subsequent regulatory support. In the short term, this announcement could positively affect CLNE stock prices and the broader RNG sector.
A renewable natural gas (RNG) fueling dispenser. (Photo: Business Wire)
Andrew J. Littlefair, CEO and president of Clean Energy Fuels Corp. (NASDAQ: CLNE), the country’s largest provider of RNG, issued a statement in support of the “Renewable Natural Gas Incentive Act of 2024”:
“At a time when other alternative fuels are having difficulty finding their footing in the heavy-duty vehicle market, RNG is being accepted more and more by fleets that want to reduce their carbon emissions. A robust RNG fueling infrastructure has been built across the country with more stations being added regularly. And a new larger engine that operates on RNG manufactured by Cummins is hitting the market this summer so, the time is ripe for Congress to give a boost to the use of this remarkable fuel.
“No other fuel eliminates greenhouse gas emissions both at the source and on the road the way RNG does, giving it the best carbon-intensity score of any fuel available in significant quantities. On top of that, the production of it is giving an economic lift to the country’s agricultural industry, particularly dairies, and creating jobs in rural areas.
“We applaud the bi-partisan way the RNG Incentive Act of 2024 began with strong authors in the Senate and the House and encourage continued support as it works its way through to become law of the land.”
RNG is derived from capturing the biogenic methane produced by decomposition of organic waste from dairies, landfills, and wastewater treatment plants. It can reduce climate-harming greenhouse gas emissions by over 300 percent depending on the source of the RNG, making it a negative carbon-intensity fuel. Thousands of medium- and heavy-duty vehicles operate on it every day by transit agencies in dozens of cities like
About Clean Energy
Clean Energy Fuels Corp. is the country’s largest provider of the cleanest fuel for the transportation market. Our mission is to decarbonize transportation through the development and delivery of renewable natural gas (RNG), a sustainable fuel derived from capturing methane from organic waste. Clean Energy allows thousands of vehicles, from airport shuttles to city buses to waste and heavy-duty trucks, to reduce their amount of climate-harming greenhouse gas. We operate a vast network of fueling stations across the
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks, uncertainties and assumptions, including without limitation statements about: the potential development of the consumer market for RNG; the timing and status of station construction; the growth and market of natural gas engines; the environmental, economic, and other benefits of Clean Energy’s fuels; the availability of environmental, tax and other government regulations, programs and incentives; and the impacts of legislative and regulatory developments. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements. The forward-looking statements made herein speak only as of the date of this press release and, unless otherwise required by law, Clean Energy undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. Additionally, the reports and other documents Clean Energy files with the SEC (available at www.sec.gov) contain risk factors, which may cause actual results to differ materially from the forward-looking statements contained in this news release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240523269718/en/
Media contact:
Kimberly Fleer
1-949-437-1447
Kimberly.fleer@cleanenergyfuels.com
Investor contact:
Thomas
1-949-437-1191
Thomas.driscoll@cleanenergyfuels.com
Source: Clean Energy Fuels Corp.
FAQ
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