Clean Energy Lauds Passage of Alternative Fuel Tax Credit by Congress

Rhea-AI Summary

Clean Energy Fuels Corp. (CLNE) celebrates the U.S. Congress's approval of an alternative fuel tax credit aimed at promoting renewable natural gas (RNG) through 2021. This legislation includes a $0.50 per gallon fuel credit for RNG used in transportation and a 30% investment tax credit for alternative vehicle refueling property. President Trump is expected to sign the bill soon. RNG, derived from organic waste, significantly reduces carbon emissions, making it a preferred choice for major fleets like UPS and LA Metro. The company operates around 540 fueling stations across North America.

Positive

• The extension of the alternative fuel tax credit supports RNG, enhancing Clean Energy's market position.
• RNG's CI Score of -250 indicates its significant environmental benefits compared to diesel and electric batteries.
• Major fleets are adopting RNG, which could drive demand and profitability for Clean Energy.

Negative

• None.

Clean Energy Fuels Corp. (NASDAQ: CLNE) 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.

About Clean Energy

Clean Energy Fuels Corp. is North America’s leading provider of the cleanest fuel for the transportation market. Through its sales of Redeem™ renewable natural gas (RNG), which is derived from capturing biogenic methane produced from decomposing organic waste, Clean Energy allows thousands of vehicle fleets, from airport shuttles to city buses to waste and heavy-duty trucks, to reduce their amount of climate-harming greenhouse gas by at least 70% and even up to 300% depending on the source of the RNG. Clean Energy can deliver Redeem through compressed natural gas (CNG) and liquified natural gas (LNG) to its network of approximately 540 fueling stations across the U.S. and Canada. Clean Energy builds and operates CNG and LNG fueling stations for the transportation market, owns natural gas liquefication facilities in California and Texas, and transports bulk CNG and LNG to non-transportation customers around the U.S. For more information, visit www.CleanEnergyFuels.com.

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 benefits of RNG. 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.

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FAQ

What recent legislation affects CLNE?

The U.S. Congress passed an alternative fuel tax credit that supports renewable natural gas (RNG) through 2021.

What are the benefits of RNG according to Clean Energy Fuels?

RNG significantly reduces carbon emissions and offers a CI Score of -250, making it the cleanest transportation fuel.

Which major companies are using RNG?

Companies like UPS, Republic Services, and LA Metro are operating fleets on RNG.

How many fueling stations does Clean Energy operate?

Clean Energy operates approximately 540 fueling stations across the U.S. and Canada.

What is the financial impact of the tax credit on CLNE?

The tax credit includes a $0.50 per gallon fuel credit, potentially boosting revenue for Clean Energy.