I 
114TH CONGRESS 
1ST SESSION 
H. R. 905 
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 
FEBRUARY 11, 2015 
Mr. THORNBERRY (for himself, Mr. LARSON of Connecticut, and Mr. LANCE) 
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 Representa-
tives 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 2015’’. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) Liquefied natural gas has an energy content 
of 74,700 Btu per gallon (lower heating value). 
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(2) Diesel has an energy content of 128,700 
Btu per gallon (lower heating value). 
(3) A gallon of liquefied natural gas only pro-
duces 58.04 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 nat-
ural gas is 18.3 cents per energy equivalent of a gal-
lon of gasoline. 
SEC. 3. EQUALIZATION OF EXCISE TAX ON LIQUEFIED NAT-
URAL 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 sec-
tion 4041(a) of such Code is amended by adding at the 
end the following: 
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‘‘(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 con-
tent of 128,700 (lower 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 sub-
section 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 nat-
ural gas after 14 days after the date of the enactment 
of this Act. 
Æ 
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