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. 
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 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). 
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(2) Diesel has an energy content of 137,380 
Btu per gallon (higher heating value). 
(3) A gallon of liquefied natural gas only pro-
duces 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 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 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 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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