NGVAmerica Applauds Introduction of House LNG Tax Fix Bill

February 11, 2015

Washington, D.C. — NGVAmerica applauds Rep. Mac Thornberry (R-TX) and John Larson (D-CT) for introducing the “LNG Excise Tax Equalization Act of 2015” (H.B. 905) to create a level playing field for clean-burning natural gas to compete with diesel as a transportation fuel.

Currently, LNG is taxed at a rate 70 percent higher than diesel fuel on an energy content basis, working against adoption of natural gas vehicles in the heavy truck market. Resetting the tax rate so that it is applied on an energy content, rather than volume basis is a commonsense measure that would remove an artificial barrier from the market.

“The introduction of this bill demonstrates continued support in the Congress for natural gas as a transportation fuel,” said NGVAmerica President Matthew Godlewski. “Rep. Thornberry and Larson recognize the important role that clean-burning, domestic natural gas can play in improving our air and supporting American jobs at home.”

LNG produces significantly lower levels of toxic emissions than diesel fuel, including lower levels of carbon dioxide, nitrogen oxide and sulfur dioxide. The use of LNG also displaces the use of foreign oil, improving our balance of trades and energy security.

“We are encouraged that critical issues such as fixing the LNG/diesel tax disparity are receiving attention in the new Congress,” said Godlewski. “It is a solid signal that we’re getting close to resolving the federal roadblocks that are standing in the way of further accelerating natural gas use in the trucking sector.”