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APGA Joins TTP On Capitol Hill

By Joshua St.Pierre posted 09-12-2024 12:02 PM

  
This week, APGA staff joined the Transport Project (TTP), formerly Natural Gas Vehicles of America, on Capitol Hill to support aligned legislative goals, including passing the bipartisan Renewable Natural Gas (RNG) Incentive Act and an extension of the Alternative Fuel Tax Credit (AFTC). Many APGA member systems deliver the energy that fuels natural gas vehicles (NGV); some even own and operate their own NGV fleets. These priorities would incentivize investment in NGVs and natural gas infrastructure while also underscoring the unique benefits of natural gas and RNG as motor fuel. Policymakers must recognize the importance of public gas infrastructure and the role it plays within the NGV industry. 
 
APGA staff asked members of Congress and their staffers to consider passing legislation that incentivizes investment in NGVs and NGV infrastructure. Specifically, APGA staff shared two opportunities for Congress to consider: 
 
  • Include a one- or two- year extension of the $.50/gallon AFTC in any upcoming tax extenders package. This is a legacy credit for compressed natural gas (CNG), liquid natural gas (LNG), and other transportation fuels. The AFTC is an end-user tax credit which means that it is applied where the fuel is dispensed and used, meaning it can directly benefit APGA member systems that deliver natural gas and/or RNG that is used as a transportation fuel. The credit is set to expire at the end of this year so Congress must act to extend these benefits. 
  • Pass the RNG Incentive Act that has been introduced in the House and Senate. This bill would create a new tax credit similar to the AFTC that provides a $1.00/gallon tax credit for RNG used as a transportation fuel. APGA members involved in RNG production and/or NGV fueling and operating would benefit from these cost savings and the potential new investment that it could jumpstart.
 
Congress is in the midst of tax policy negotiations that could continue through the rest of 2024 and into 2025. There is a lot on the table for legislators to work through as several incentives and programs are expiring at the end of this year. As negotiations continue, APGA staff will continue to educate members of Congress on the impacts that these priorities will have on community-owned gas utilities and their customers. 
 
For questions on this article, please contact Joshua St.Pierre of APGA staff by phone at 202-407-0015 or by email at jstpierre@apga.org.

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