Cassidy, Bennet, Young reintroduce the Waterway LNG Parity Act of 2017

BATON ROUGE, La (LOCAL 33) - US Senators Bill Cassidy, MD (R-LA), Michael Bennet (D-CO) and Todd Young (R-IN) introduced the Waterway LNG Parity Act of 2017. This bipartisan legislation would ensure that excise taxes on liquefied natural gas (LNG) for marine transportation on the inland waterways are levied at a rate consistent with their energy output relative to diesel and gasoline, respectively.

On an energy equivalent basis, it takes about 1.7 gallons of LNG to provide the same amount of energy as a gallon of diesel. In other words, a user of LNG in marine transportation 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.

LNG is a cheaper, cleaner, domestic energy source and the current financing mechanism for the inland waterways system puts its use at a disadvantage. This legislation would change the inland waterways financing rate to provide equal treatment within the federal tax code.

Cassidy, Bennet and Young released the following statements:

“LNG is taxed at a 72 percent higher rate for the same amount of energy provided as diesel. That needs to change,” said Dr. Cassidy. “Establishing equal tax treatment for LNG will encourage its use and production—benefiting the economy, environment and workers of Louisiana.”

“Natural gas is a vital part of Colorado’s diverse energy industry,” Bennet said. “Colorado now ranks sixth in natural gas production in the United States. This legislation acknowledges the shift to cleaner burning fuels. Providing equal treatment to LNG for marine transportation – as we did for cars and trucks in 2015 – expands this market and encourages the use of domestically produced natural gas.”

“This is a market-based fix to ensure consumers aren’t discouraged from adopting alternative fuel vehicles. Liquid natural gas is a growing sector of our economy, and this legislation guarantees it competes on a level playing field with other forms of energy,” said Young.

To read the Waterway LNG Parity Act of 2017 legislative text, click here.

Don't Miss

Trending Stories

  • WVLA Local 33 News

  • WGMB Fox 44

  • WVLA Local 33 News

  • WGMB Fox44 Baton Rouge

  • BR Proud Mobile App