Roush_id334
in News Departments > Policy Watch
print the content item


U.S. Sens. Michael Bennet, D-Colo., and Richard Burr, R-N.C., have introduced the LNG Excise Tax Equalization Act of 2013 (S.1103), which seeks to establish the equitable taxation of liquefied natural gas (LNG) as a transportation fuel by basing the federal highway excise tax rate on LNG's energy output.

Companion legislation was introduced in the House by U.S. Reps. Mac Thornberry, R-Texas, and John Larson, D-Conn., on May 24.

Both bills are based on the premise that LNG should not be taxed at the same rate as diesel, but it currently is (24.3 cents per gallon). The energy output of one gallon of diesel is equivalent to about 1.7 gallons of LNG, which means a gallon-based tax puts LNG at a 70% higher rate.

Taxing LNG according to the diesel gallon equivalent (DGE) by energy output rather than by volume will eliminate the disparity.

"We commend Senators Bennet and Burr for this common-sense measure," says Richard Kolodziej, president of NGVAmerica. "Removing this tax penalty will accelerate the use of LNG in our nation's trucking fleet and help reduce America's reliance on foreign oil."

NC SolarCenter_id331

Related Stories
WEH Tech_id258
AGA Systems_id297
Latest Top Stories

Hydraulic Hybrid: Inside A Fuel-Agnostic Advanced Fleet Technology

When it comes to achieving fuel efficiency and cost savings, the options extend beyond alt fuels.


A Rocky Road Toward One State's CNG Success?

Colorado is trying hard to be a leader in the NGV sector, but not everyone is convinced of its merits.


Getting Ahead Of A Potentially Dangerous Natural Gas Vehicle Issue

As the cold weather approaches, CNG users need to begin looking at temperature-related phenomena.


Kenworth Continues To Expand Its Heavy-Duty Natural Gas Portfolio

The OEM is steadily bringing CNG and LNG as options to many corners of the trucking industry.


Public Safety Fleet Experiencing the Upside of Propane Autogas

'If we save $1.50 to $2.00 per gallon and we run 25,000 miles or more a year per car, that's a lot of money.'

ANGI_id212
Precision Fit_id259
Bauer_id333
CNG_id317
NGVOK_id325
ET Environmental_id238
CertifiedCNG_id308