Kentucky Energy & Environment Cabinet Department for Energy Development and Independence Compressed...
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Kentucky Energy & Environment Cabinet Department for Energy Development and Independence Compressed Natural Gas Road Taxes Presentation to: Kentucky Gas Association (KGA) September 30, 2014 Michael Kennedy, P.E. Assistant Director of Fossil Energy Development To Protect and Enhance Kentucky’s Environment 1
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CNG and LNG Equivalency –CNG and LNG gasoline gallon equivalents (gge) under 103 KAR 43:330 GGE for CNG is 5.66 lbs or cf GGE for LNG is 6.06 lbs CNG Road Tax 3
Transcript of Kentucky Energy & Environment Cabinet Department for Energy Development and Independence Compressed...
Kentucky Energy & Environment Cabinet Department for Energy Development and Independence
Compressed Natural Gas Road TaxesPresentation to:
Kentucky Gas Association (KGA)September 30, 2014
Michael Kennedy, P.E.Assistant Director of Fossil Energy Development
To Protect and Enhance Kentucky’s Environment
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• CNG and LNG Road Tax
• CNG and LNG Equivalency
• IEIA for CNG
Compressed Natural Gas (CNG)
• CNG and LNG Equivalency– CNG and LNG gasoline gallon equivalents (gge)
under 103 KAR 43:330
• GGE for CNG is 5.66 lbs or 126.67 cf
• GGE for LNG is 6.06 lbs
CNG Road Tax
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• CNG Equivalency– Energy Content
• CNG has a LHV of 20,160 Btu/lb1
• 5.66 lb/gge * 20,160 Btu/lb= 114,105 Btu/gge
Gasoline has a LHV of 112,114 – 116,090 Btu/gge1
1Alternative Fuels Data Center http://www.afdc.energy.gov/fuels/fuel_properties.php
CNG Road Tax
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• LNG Equivalency– Energy Content
• LNG has a LHV of 20,900 Btu/lb1
• 6.06 lb/gge * 20,900 Btu/lb= 126,654 Btu/gge
Diesel has a LHV of 128,488 Btu/gge1
1Alternative Fuels Data Center http://www.afdc.energy.gov/fuels/fuel_properties.php
LNG Road Tax
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• Kentucky Road Tax – Gasoline and special fuels
• Motor Fuels Taxes consist of taxes on gasoline, liquefied petroleum.
• Special fuels (all combustible gases and liquids capable of being used in motor vehicles, except gasoline and liquefied petroleum).
• Environmental Fee – Assigned to gasoline and diesel
CNG Road Tax
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• Road Tax
– CNG and LNG are taxed as a special fuel.From: October 1 to December 31, 2014
Special fuel tax is 27.5 cents per gallon.
Motor Fuel tax is 30.5 cents per gallon.
Environmental Fee is 1.4 cents per gallon.
CNG Road Tax
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• CNG Road Tax
– One gge of CNG:$0.275 per gge as special fuel.
– One gallon of gasoline:$0.305 per gallon as motor fuel.$0.014 per gallon as environmental fee.$0.319 per gallon total.
CNG Road Tax
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• LNG Road Tax
– One gge of LNG:$0.275 per gge as special fuel.
– One gallon of diesel:$0.275 per gallon as special fuel.$0.014 per gallon as environmental fee.$0.289 per gallon total.
LNG Road Tax
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Road Taxes Road Tax
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Fuel energy contentunits Road Tax ($/gal) Environmental Fee ($/gal) $/mmBtugasoline 114,000 Btu/gal 0.305 0.014 2.68$ diesel 128,488 Btu/gal 0.275 0.014 2.14$ CNG 114,717 Btu/gal (gge) 0.275 2.40$ LNG 129,266 Btu/gal (gge) 0.275 2.13$
IEIA• Incentives for Energy Independence Act (IEIA)
–Minimum Capital Investment $1,000,000
–Up to $500,000 in incentives for a CNG station
–Available up to 25 years
• http://energy.ky.gov/Documents/IEIA%20Fact%20Sheet%20-%20July%201%202010.pdf
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CNG Road Tax
Michael Kennedy, P.E.
Assistant Director of Fossil Energy Development
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