Highway Trust Fund Legislation Will Reduce LNG Federal Tax for Energy Equivalence

August 18th, 2015 by Fiedler Group

In late July, both Houses of the U.S. Congress passed the Highway Trust Fund Legislation; President Obama signed it into law July 31st.

An element of the legislation is a provision that would lower the federal tax on liquefied natural gas (LNG) 14.1 cents per gallon, resulting in an equal footing of energy-equivalence that both diesel and gasoline already enjoy.

While natural gas fuel already costs up to $1.00 less than gasoline or diesel, this tax equalizer is expected to further demonstrate to consumers the value in transitioning to alternative fuel-powered vehicles.

What’s more, LNG also reduces greenhouse gas emissions up to 30 percent in light-duty vehicles.

While saving money will always be a consumer goal, environmental welfare is becoming an equally important topic, as demonstrated by the growth of companies like Tesla.

Clean Energy Fuels Corp. president and CEO, Andrew J. Littlefair seconded that notion, commenting, “Anyone who cares about a cleaner environment and energy independence should be very grateful for what the U.S. Congress did this week by making LNG that much more competitive as a transportation fuel of choice.”

To learn more about Fiedler Group’s work with Clean Energy Fuels Corp., and to see Fiedler Group’s expertise in the alternative fuel industry, please contact us today.