LNG Excise Taxes

Floor Speech

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Mr. YOUNG of Indiana. Mr. Speaker, I rise today to briefly highlight
an issue that I wish had been resolved this week, but unfortunately the
President's veto threat of an unfinished tax extenders compromise
caused this bill to remain fallow.

Under the current outdated Tax Code, LNG, liquefied natural gas, is
applied the same excise tax as other fuels despite producing different
energy outputs per gallon. This results in LNG users facing
disproportionately higher excise tax rates than their diesel
counterparts, creating a perverse inequality that artificially hinders
the attractiveness of LNG as a transportation fuel.

So a truck fueling with domestic clean natural gas at Sellersburg,
Indiana's LNG truck stop pays 70 percent more tax than its diesel
counterpart across the street. An LNG-powered river tug fueling up at
one of Ohio's river ports will, instead of paying the proposed 29 cents
per gallon fuel tax for inland waterways, pay nearly 50 cents per
gallon. This disparity needs to be addressed.

There has been some constructive movement by Representative
Thornberry. I applaud that effort and hope we can address this matter
next year during the debate on the highway trust fund.

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