Waterway LNG Parity Act introduced by Cassidy

The bipartisan Waterway LNG Parity Act of 2015 was introduced on Friday by U.S. Sens. Bill Cassidy (R-LA) and Michael Bennet (D-CO), ensuring that excise taxes on liquefied natural gas (LNG) for inland waterways marine transportation are levied at a consistent rate with their energy output relative to diesel and gasoline.

“It takes about 1.7 gallons of LNG to provide the same amount of energy as a gallon of diesel,” Cassidy said. “Those who use LNG to power marine vessels would have to pay 50 cents in tax for the same amount of energy contained in a gallon of diesel fuel that is only taxed at 29 cents — that doesn’t make sense. By ensuring equal tax treatment for LNG, it encourages its use and its production—benefiting Louisiana’s economy and workers.”

The current inland waterways system financing mechanism puts LNG – a cheaper, cleaner, domestic energy source – at a disadvantage. The legislation is meant to change the financing rate for inland waterways as a means of providing equal treatment within the federal tax code.

“Natural gas is a growing part of Colorado’s diverse energy industry, and this bill recognizes the shift to alternative fuels in across transportation technologies,” Bennet said. “Providing parity to LNG for marine transportation – just as we recently did for cars and trucks – creates an opportunity to grow this market and encourages the use of domestically produced natural gas as a cleaner burning transportation fuel.”

The legislation is supported by NGVAmerica, Clean Energy Fuels Corp., Energy Connect, the Shell Oil Company, Blu LNG, AGL Resources, Applied LNG, and the West Slope Colorado Oil and Gas Association.

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