LNG Excise Tax Equalization Act of 2012

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3832 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 3832

     To amend the Internal Revenue Code of 1986 to provide for the 
equalization of the excise tax on liquefied natural gas and per energy 
                         equivalent of diesel.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 25, 2012

Mr. Thornberry introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
     To amend the Internal Revenue Code of 1986 to provide for the 
equalization of the excise tax on liquefied natural gas and per energy 
                         equivalent of diesel.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``LNG Excise Tax Equalization Act of 
2012''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Liquefied natural gas has an energy content of 84,820 
        Btu per gallon (higher heating value).
            (2) Diesel has an energy content of 137,380 Btu per gallon 
        (higher heating value).
            (3) A gallon of liquefied natural gas only produces 61.74 
        percent of the energy produced from a gallon of diesel; 
        however, the Federal excise taxes on liquefied natural gas and 
        diesel are both 24.3 cents per gallon.
            (4) The Federal excise tax on compressed natural gas is 
        18.3 cents per energy equivalent of a gallon of gasoline.

SEC. 3. EQUALIZATION OF EXCISE TAX ON LIQUEFIED NATURAL GAS AND PER 
              ENERGY EQUIVALENT OF DIESEL.

    (a) In General.--Subparagraph (B) of section 4041(a)(2) of the 
Internal Revenue Code of 1986 is amended by striking the period at the 
end of clause (ii) and inserting ``, and'', and by inserting after 
clause (ii) the following new clause:
                            ``(iii) in the case of liquefied natural 
                        gas, 24.3 cents per energy equivalent of a 
                        gallon of diesel.''.
    (b) Energy Equivalent of a Gallon of Diesel and Administrative 
Provision.--Paragraph (2) of section 4041(a) of such Code is amended by 
adding at the end the following:
                    ``(C) Energy equivalent of a gallon of diesel.--For 
                purposes of this paragraph, the term `energy equivalent 
                of a gallon of diesel' means, with respect to a 
                liquefied natural gas fuel, the amount of such fuel 
                having a Btu content of 137,380 (higher heating value).
                    ``(D) Administrative provisions.--For purposes of 
                applying this title with respect to the taxes imposed 
                by this subsection, references to any liquid subject to 
                tax under this subsection shall be treated as including 
                references to liquefied natural gas subject to tax 
                under this paragraph.''.
    (c) Conforming Amendments.--Section 4041(a)(2)(B)(ii) of such Code 
is amended--
            (1) by striking ``liquefied natural gas,'', and
            (2) by striking ``peat), and'' and inserting ``peat) and''.
    (d) Effective Date.--The amendments made by this section shall 
apply to any sale or use of liquefied natural gas after 14 days after 
the date of the enactment of this Act.
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