NGVAmerica Applauds Introduction of the Alternative Fuel Tax Parity Act

March 26, 2015

Washington, D.C. — NGVAmerica applauds Rep. Todd Young (R-IN), John Larson (D-CT), Mac Thornberry (R-TX) and Ron Kind (D-WI)  for introducing the Alternative Fuel Tax Parity Act (H.R. 1665) to create a level playing field for clean-burning natural gas to compete with diesel as a transportation fuel.

Currently, liquefied natural gas (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 based on energy content rather than volume is a commonsense measure that would remove an artificial barrier from the market. The Alternative Fuel Tax Parity Act adjusts the excise tax rate for LNG from 24.3 cents per gallon to 14.1 cents per gallon.

“The introduction of this bill demonstrates continued support in the Congress for natural gas as a transportation fuel,” said NGVAmerica President Matthew Godlewski.  “Rep. Young, Larson, Thornberry and Kind 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.”