February 11, 2015
Washington, D.C. — NGVAmerica commends the Senate Finance Committee today for advancing a bipartisan proposal from Sen. Michael Bennet (D-CO) and Richard Burr (R-NC) during its Open Executive Sessions that will convert the tax on liquefied natural gas (LNG) to an energy equivalency basis. The original bill will now be considered by the full Senate.
“The advancement of bipartisan Bennet-Burr proposal by the Senate Finance Committee is a positive step resolving an important barrier to the expanded use of natural gas as a transportation fuel,” said NGVAmerica President Matthew Godlewski.
The use of LNG as a transportation fuel holds a number of policy benefits. 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.
However, the LNG tax inequity raises the cost of LNG versus diesel fuel, and that is artificially reducing some of LNG’s natural economic advantage and slowing the adoption of LNG as a vehicle fuel.
“The Congress has shown tremendous support for this issue,” said Godlewski. “NGVAmerica and the NGV industry are encouraged that the LNG tax disparity will soon be resolved, accelerating the adoption of natural gas by heavy-duty trucks.”