Bill to exempt water portion of emulsion from U.S. diesel fuel tax runs into opposition

Diesel Fuel News, March 17, 2003

The U.S. House this month seemed headed toward approving a measure to exempt up to 20% water content from water-diesel emulsions from the U.S. 24.4 cents/gallon federal excise tax on diesel fuel. But then Democrats attacked the bill (most of which was to help military reservists) for including several pro-business provisions sponsored by the majority Republicans.

Lubrizol, maker of the "PuriNOx" emulsion to reduce diesel nitrogen oxides (NOx) and particulate matter (PM) says the provision wouldn't cost the U.S. Treasury anything since water isn't a "fuel." The number of diesel gallons burned to do the same work wouldn't change, hence U.S. diesel fuel tax collections wouldn't change, either, Lubrizol argues.