Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
The Treasury Department’s rule to implement the Renewable Energy Tax Credits of the Inflation Reduction Act (IRA) will incorporate new language that will provide greater benefits for operations that refine natural gas from organic waste.
The announcement comes after lobbying by Rep. Hillary Scholten (D-Mich.), who joined three other Democrats in Congress in August in asking the Treasury Department to go with broader language, as well as a push from groups like the American Biogas Council and the Coalition for Renewable Natural Gas.
Under the initial proposed rule, machinery used to refine organically derived crude gas into the final natural gas product that travels through pipelines was not considered “integral” equipment. But it will be considered as such under the final language.
Under the above language, “the cost of adding improvement equipment must generally be at least four times the value of the collection system,” the members wrote.
“I wanted to make sure that anyone who is willing to make renewable natural gas a priority can reap the benefits,” Scholten told The Hill.
The rule comes after a group of House Republicans, before the presidential election, asked Speaker Mike Johnson (R-La.) to consider leaving some of the IRA’s renewable energy tax credits in the event of a Republican trifecta instead of moving to repeal the law wholesale.
Scholten told The Hill that the push from Republican colleagues suggests opportunities for broader bipartisan cooperation on energy issues in the next Congress, especially given the particular implications of tax credits for rural districts.
Scholten told The Hill that he was “in active discussions” with Republican colleagues to extend the credit, which can only be claimed for projects if construction begins by the end of the calendar year.
“We’re in the fourth quarter … the people who really want to benefit are going to have a very limited time,” he said.
The new language, which Scholten said would especially benefit farmers, comes amid an internal debate over the Democratic Party’s appeal to rural voters after losses in the 2024 election.
Reps. Angie Craig (D-Minn.) and Jim Costa (D-Calif.) have announced leadership challenges to House Agriculture Committee ranking member David Scott (D-Ga.), both citing his potential to reach rural voters, attracting them. an unspoken but clear contrast to Scott’s predominantly urban neighborhood.
