According to the USDA’s Economic Research Service, agricultural land uses account for over half of the US land base. The USEPA estimates that the agricultural sector, including its electricity consumption, accounts for 10.5 percent of US greenhouse gas emissions (2022).
In agriculture, crop and livestock activities emit nitrous oxide and methane, mainly from fertilizer application and enteric fermentation, a normal digestive process in livestock animals that produces methane and manure.
A bipartisan bill introduced on January 17, 2025, would extend the Section 48 investment tax credit (ITC) of the Agricultural Environmental Stewardship Act for qualified biogas properties, many of which impact the agricultural sector. The aim is to continue helping to boost domestic clean energy production for qualified biogas properties through December 31, 2025.
The bill empowers innovative biogas producers to make major clean energy investments with the regulatory certainty provided through the Treasury’s final rulemaking. According to the legislators, the bipartisan effort will accelerate our nation’s clean and alternative fuel production from landfills, wastewater treatment plants, diverted food waste, and agricultural operations to slash greenhouse gas emissions and save consumers money.
These methane producers provide essential products and services but must make critical investments in biogas to continue serving Americans while running greener operations and lowering energy costs for families nationwide.
These same producers are already leading the way in turning agricultural waste into clean energy, and extending the ITC will help them expand their efforts to diversify the energy grid, improve sustainability, and create new income opportunities.
The legislators, Representatives Scholten and Valadao, have the support of the American Biogas Council and the Coalition for Renewable Natural Gas on this bipartisan effort to increase domestic energy production and support American farmers.
While the final guidance from the Treasury Department for Sec. 48 ITC was favorable for the biogas and renewable natural gas industries, the rule was published only weeks before expiration at the end of 2024. “Passing the Agricultural Environmental Stewardship Act of 2025 provides the industry with the market certainty necessary to unlock millions of dollars in private investment across rural America.” – Patrick Serfass, Executive Director of the American Biogas Council
“If enacted, this effort would provide critical investment certainty for RNG [Renewable Natural Gas] developers, fostering job growth and economic impact in the rapidly growing US alternative fuels industry.” – Geoff Dietz, Executive Director of the Coalition for Renewable Natural Gas
SCS Engineers applauds the effort to support owners, operators, and developers – utilities and governments – renewable energy end-users – and the agricultural and waste industries in achieving renewable energy goals, reducing greenhouse gases, and creating useful by-products from waste.
Additional Biogas and Anaerobic Digestion Resources
