American Biogas Council Commends House Passage of Clean Fuel Tax Credit Extension in Reconciliation Bill - American Biogas Council

WASHINGTON — May 22, 2025  American Biogas Council (ABC) Executive Director Patrick Serfass released the following statement after the House passed reconciliation legislation extending the Clean Fuel Production Tax Credit and refining the incentive’s carbon intensity scoring:

“The American Biogas Council welcomes House passage of legislation that extends the Section 45Z Clean Fuel Production Tax Credit and makes crucial changes to carbon intensity scoring for manure-based biogas projects.

“We urge the Senate to follow quickly suit and pass legislation that also includes the House provisions favorable to biogas, which will accelerate the deployment of biogas systems that capture energy from organic materials like manure, food waste and wastewater solids as they break down. These systems transform this waste into clean, American-made energy, while reducing pollution and stimulating economic growth in rural communities.

“To fully realize the potential of biogas, we also call on the Senate to extend support for biogas systems under the clean electricity (Sections 48E/45Y) and clean hydrogen (Section 45V) tax credits, which are critical for farmers, municipalities and other operators who are limited from using Section 45Z but still seek to generate renewable energy from decomposable waste.

“Recent polling indicates these changes align with public sentiment, which shows 3-in-4 American voters support more biogas production and also federal spending to do so as a solution for waste reduction and energy production.

“Currently, just 14.7% of potential biogas systems have been built in the U.S. Increasing the number of biogas systems would generate energy from the enormous volumes of waste America produces: nearly one million dry tons of wastewater sludge, 33 million tons of inedible food waste, and 1.4 billion tons of manure produced each year by American farms. In addition, at least 470 landfills currently flare gas that could be used to heat and power homes and fuel vehicles. Adding new biogas systems to manage this waste have the potential generate 194 billion kilowatt-hours of renewable electricity annually or 3,632 billion cubic feet (bcf) per year of biogas.

“We stand ready to work with the Senate to improve and pass this crucial legislation to further achieve energy dominance by promoting homegrown energy with biogas.”

# # #