NGVAmerica Commends Senators for Introducing LNG Waterway Parity Act of 2017
Washington, D.C. — NGVAmerica commends Senators Bill Cassidy, M.D. (R-LA), Michael Bennet (D-CO), and Todd Young (R-IN) for introducing the Waterway LNG Parity Act of 2017, a bill that would ensure the excise tax on liquefied natural gas (LNG) that is used to power marine vessels on inland waterways is consistent with the excise tax imposed on diesel fuel.
“The future of LNG use in marine transportation is strong,” said Matthew Godlewski, NGVAmerica President.
Liquefied natural gas offers superior benefits as a transportation fuel when used in marine applications. Vessels fueled by LNG are significantly cleaner compared to vessels fueled by conventional oil-based marine fuels. They produce near zero sulfur oxide (SOx) emissions and significantly reduce particulate matter (PM) and nitrogen oxides (NOx).
Additionally, LNG is supported by America’s more than 90-year supply of domestic natural gas resources. LNG offers marine operators on the inland waterways decades of clean and affordable fuel, which will allow for significant market growth in the future.
As the use of LNG on inland waterways grows, it is important to ensure the fair treatment of the cleaner-burning alternative fuel in the federal tax code. The Act would change the way LNG is taxed, from a volumetric to an energy equivalency basis, to further accelerate the use of domestically produced natural gas.
“NGVAmerica commends Senators Bill Cassidy, M.D. (R-LA), Michael Bennet (D-CO), and Todd Young (R-IN) for introducing the Waterway LNG Parity Act of 2017,” said Godlewski. “This common-sense, bipartisan legislation would remove another barrier to the greater utilization of clean-burning, low-cost domestic natural gas in the transportation sector by leveling the playing field for the taxation of LNG fuel used in marine vessels operating on inland waterways in the U.S.”