June 11, 2019. U.S. Senators Todd Young (R-Ind.), Bill Cassidy, M.D. (R-La.), and Michael Bennet (D-Colo.) reintroduced the Waterway LNG Parity Act. This bill requires excise taxes on liquefied natural gas (LNG) for marine transportation on inland waterways be levied at a rate consistent with energy output relative to diesel and gasoline.
“The Waterway LNG Parity Act is a market-based fix for how we tax liquefied natural gas,” said Senator Young. “The bill levels the playing field for this important alternative fuel source which represents a growing sector of our economy.”
It takes about 1.7 gallons of LNG to provide the same amount of energy as a gallon of diesel, yet fuel usage is taxed on volume. So LNG usage would be taxed 50 cents for the same amount of energy contained in a gallon of diesel fuel that is only taxed at 29 cents. Natural gas is cleaner and more efficient than gasoline and diesel respectively, yet under the current federal tax code discourages its use. This legislation would change the inland waterways financing rate to provide equal treatment within the federal tax code.
“Natural gas is a clean, domestic energy source that should be treated equally to gasoline and diesel,” said Dr. Cassidy. “We should be encouraging the use and production of LNG—benefiting the economy and workers in Louisiana.”
“Diesel fuels should not be provided better tax treatment than natural gas,” said Senator Bennet. “Our legislation acknowledges the shift to cleaner burning fuels, which is an important step in moving us to a cleaner energy economy.”
More information in www.usgasvehicles.com