I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘LNG Excise Tax 

5 Equalization Act of 2012’’. 

6 SEC. 2. FINDINGS. 

7 The Congress finds the following: 

8 (1) Liquefied natural gas has an energy content 

9 of 84,820 Btu per gallon (higher heating value). 

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1 (2) Diesel has an energy content of 137,380 

2 Btu per gallon (higher heating value). 

3 (3) A gallon of liquefied natural gas only pro4 duces 61.74 percent of the energy produced from a 

5 gallon of diesel; however, the Federal excise taxes on 

6 liquefied natural gas and diesel are both 24.3 cents 

7 per gallon. 

8 (4) The Federal excise tax on compressed nat9 ural gas is 18.3 cents per energy equivalent of a gal10 lon of gasoline. 

11 SEC. 3. EQUALIZATION OF EXCISE TAX ON LIQUEFIED NAT12 URAL GAS AND PER ENERGY EQUIVALENT OF 

13 DIESEL. 

14 (a) IN GENERAL.—Subparagraph (B) of section 

15 4041(a)(2) of the Internal Revenue Code of 1986 is 

16 amended by striking the period at the end of clause (ii) 

17 and inserting ‘‘, and’’, and by inserting after clause (ii) 

18 the following new clause: 

19 ‘‘(iii) in the case of liquefied natural 

20 gas, 24.3 cents per energy equivalent of a 

21 gallon of diesel.’’. 

22 (b) ENERGY EQUIVALENT OF A GALLON OF DIESEL

23 AND ADMINISTRATIVE PROVISION.—Paragraph (2) of sec24 tion 4041(a) of such Code is amended by adding at the 

25 end the following: 

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1 ‘‘(C) ENERGY EQUIVALENT OF A GALLON

2 OF DIESEL.—For purposes of this paragraph, 

3 the term ‘energy equivalent of a gallon of diesel’ 

4 means, with respect to a liquefied natural gas 

5 fuel, the amount of such fuel having a Btu con6 tent of 137,380 (higher heating value). 

7 ‘‘(D) ADMINISTRATIVE PROVISIONS.—For 

8 purposes of applying this title with respect to 

9 the taxes imposed by this subsection, references 

10 to any liquid subject to tax under this sub11 section shall be treated as including references 

12 to liquefied natural gas subject to tax under 

13 this paragraph.’’. 

14 (c) CONFORMING AMENDMENTS.—Section 

15 4041(a)(2)(B)(ii) of such Code is amended— 

16 (1) by striking ‘‘liquefied natural gas,’’, and 

17 (2) by striking ‘‘peat), and’’ and inserting 

18 ‘‘peat) and’’. 

19 (d) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to any sale or use of liquefied nat21 ural gas after 14 days after the date of the enactment 

22 of this Act. 

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