Let’s agree that a mere three-month extension of funding for the Highway Trust Fund, is another ridiculous example of kicking a major issue down the road rather than dealing with it forthrightly.
But there was a glimmer of gold deep within the bill — a provision that will boost Colorado’s energy industry, and specifically natural gas.
Currently, liquified natural gas (LNG) used in transportation is taxed by the gallon rather than by energy output, effectively giving diesel fuel a tax advantage. The provision in the highway bill, sponsored in the Senate by Michael Bennet, D-Colo., and Richard Burr, R-N.C., would mandate that these fuels be taxed on an energy equivalent basis.
The net effect will be to make LNG a more attractive option for vehicle fleets. And since LNG is both cleaner-burning than diesel and produced in the U.S., the tax change’s benefits extend well beyond the transportation sector.
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