Waterway LNG Parity Act of 2015

Support lower rates on taxation of dividends. Tax reform proposals. Tax extenders. Promote the development of the natural gas vehicle market by supporting various incentives. Support incentives to produce biogas. Support incentives for high efficiency natural gas furnaces, boilers and water heaters (25C tax credits). Support incentives for energy efficiency buildings (179D). Tax Credits: The carryover of excess corporate charitable contributions. This issue arose in H.R.4016 - to amend the Internal Revenue Code of 1986 to extend the limitation on the carryover of excess corporate charitable contributions. This bill would amend the Internal Revenue Code to increase the carryover period for charitable contributions from 5 years to 20 years. Increasing the 5 year carryover period to 20 years would eliminate the penalty present in current law that is particularly problematic for our companies, which operate in regulated industries and generally make significant annual charitable contributions to community charities in their operating jurisdictions. This issue is more acute for companies in our industries - regulated electric and gas utilities - because we are among the most capital intensive industries in the country. Each year, the electric and gas utilities are spending more than $100 billion in investments to improve system safety and reliability while offering an important source of much-needed, high-quality jobs. Tax Credits: The investment tax credit for combined heat and power. This issue arose in H.R. 2657 - Power Efficiency and Resiliency Act (POWER Act) - to alter Section 48 of the Internal Revenue Code of 1986 to increase and alter the investment tax credit for combined heat and power. This bill would amends Section 48 of the tax code to provide parity for combined heat and power (CHP) with other forms of energy. The bill would increase the investment tax credit for CHP from 10% to 30% and would apply to the first 25 MW of a project instead of the first 15MW. Tax Parity: S. 1516 - Power Efficiency and Resiliency Act (POWER Act) This bill would amends Section 48 of the tax code to provide parity for combined heat and power (CHP) with other forms of energy. The bill would increase the investment tax credit for CHP from 10% to 30% and would apply to the first 25 MW of a project instead of the first 15MW. Tax Credits: Combined Heat and Power, Fuel Cells and Microturbines Investment Tax Credit Extension Past 2016. At the end of 2015 connected to the omnibus spending and tax legislation, Congress passed a long term extension of both the production tax credit for wind and investment tax (ITC) credit for solar. Other technologies that have (and currently do through the end of 2016) qualified for these credits were not provided with extensions or modifications. Those technologies that did not receive an extension include fuel cells, geothermal, small wind energy, microturbines, and combined heat and power (CHP). Fuel cells, microturbines and CHP utilize natural gas as an energy source and are viewed as emerging markets for natural gas utilities. In order to avoid serious market disruption to and provide for short- to mid-term planning for still nascent industries, AGA is working to extend the tax credit this year. Tax Parity: S. 2378 - Waterway LNG Parity Act of 2015. This bill amends the Internal Revenue Code to modify the excise tax rate for the Inland Waterways Trust Fund to equal 29 cents per gallon or the per energy equivalent of a gallon of diesel in the case of liquefied natural gas, as defined by this Act. Currently, the fuel tax on liquefied natural gas (LNG) vessels is the same as the diesel tax on a per-gallon basis. However, because a gallon of LNG contains less energy than a gallon of diesel, in effect LNG is taxed at 170 percent of the diesel tax rate.

Client expense: $210,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

General discussion of proposals to amend foreign earnings taxation provisions General discussion of proposals to repatriate foreign earnings General discussion of proposals to develop a dividend exemption system General discussion of proposals to extend tax credits that expired at the end of 2014 Discussion of draft legislation to amend the Internal Revenue Code of 1986 to extend the energy credit for certain property under construction General discussion of renewable energy tax credits General discussion of natural gas vehicle / infrastructure tax credits General discussion of deductibility of interest expenses General discussion of carryover period for charitable expense deductions General discussions of the Senate Finance Committee Working Group on International Tax Discussion draft of the American Business Competitiveness Act re foreign earnings taxation rules H.R. 1430 - Permanent CFC Look-Through Act of 2015 - all aspects H.R. 905 - LNG Excise Tax Equalization Act of 2015 - all aspects H.R. 4016 - To extend the limitation on the carryover period for excess corporate charitable contributions - all aspects General discussion of Congressional response to the final reports of the Organisation for Economic Development and Coordination's Base Erosion and Profit Shifting project H.R. 4441 - Aspects related to taxation H.R. 2029 - Providing appropriations for Military Construction and Veterans Affairs Appropriations - Amended sections extending and making permanent federal tax incentives The Protecting Americans from Tax Hikes (PATH) Act of 2015 - amending or making permanent federal tax incentives S. 386 - Mobile Workforce State Income Tax Simplification Act - all aspects H.R. 2315 - Mobile Workforce State Income Tax Simplification Act - all aspects H.R. 3431 - Waterway LNG Parity Act of 2015 - all aspects S. 2378 - Waterway LNG Parity Act of 2015 - all aspects

S. 33 - LNG Permitting Certainty and Transparency Act - All aspects of the bill H.R. 351 - LNG Permitting Certainty and Transparency Act - All aspects of the bill H.R. 287 - American Job Creation and Strategic Alliances LNG Act - All aspects of the bill H.R. 428 - Export American Natural Gas Act of 2015 - All aspects of the bill H.R. 161 - Natural Gas Pipeline Permitting Reform Act to facilitate permitting of natural gas pipeline infrastructure - All aspects of the bill S. 2276 - SAFE PIPES Act - All Aspects of the bill H.R. 3431 - Waterway LNG Parity Act of 2015 - All aspects of the bill General discussion regarding legislative proposals to change rules addressing emissions from natural gas transmission and distribution infrastructure S. 2012 - Energy Policy Modernization Act of 2015 - All aspects of the bill S. 2378 - Waterway LNG Parity Act of 2015 - All aspects of the bill

Client expense: $560,000 · Firm income: Not reported

Government targets: Commodity Futures Trading Commission (CFTC), Energy, Dept of, Environmental Protection Agency (EPA), Executive Office of the President (EOP), HOUSE OF REPRESENTATIVES, Office of Management & Budget (OMB), Pipeline & Hazardous Materials Safety Administration, SENATE, Treasury, Dept of

Support lower rates on taxation of dividends. Tax reform proposals. Tax extenders. Promote the development of the natural gas vehicle market by supporting various incentives. Support incentives to produce biogas. Support incentives for high efficiency natural gas furnaces, boilers and water heaters (25C tax credits). Support incentives for energy efficiency buildings (179D). Tax Credits: The carryover of excess corporate charitable contributions. This issue arose in H.R.4016 - to amend the Internal Revenue Code of 1986 to extend the limitation on the carryover of excess corporate charitable contributions. This bill would amend the Internal Revenue Code to increase the carryover period for charitable contributions from 5 years to 20 years. Increasing the 5 year carryover period to 20 years would eliminate the penalty present in current law that is particularly problematic for our companies, which operate in regulated industries and generally make significant annual charitable contributions to community charities in their operating jurisdictions. This issue is more acute for companies in our industries - regulated electric and gas utilities - because we are among the most capital intensive industries in the country. Each year, the electric and gas utilities are spending more than $100 billion in investments to improve system safety and reliability while offering an important source of much-needed, high-quality jobs. Tax Credits: The investment tax credit for combined heat and power. This issue arose in H.R. 2657 - Power Efficiency and Resiliency Act (POWER Act) - to alter Section 48 of the Internal Revenue Code of 1986 to increase and alter the investment tax credit for combined heat and power. This bill would amends Section 48 of the tax code to provide parity for combined heat and power (CHP) with other forms of energy. The bill would increase the investment tax credit for CHP from 10% to 30% and would apply to the first 25 MW of a project instead of the first 15MW. Tax Parity: S. 1516 - Power Efficiency and Resiliency Act (POWER Act) This bill would amends Section 48 of the tax code to provide parity for combined heat and power (CHP) with other forms of energy. The bill would increase the investment tax credit for CHP from 10% to 30% and would apply to the first 25 MW of a project instead of the first 15MW. Tax Credits: Combined Heat and Power, Fuel Cells and Microturbines Investment Tax Credit Extension Past 2016. At the end of 2015 connected to the omnibus spending and tax legislation, Congress passed a long term extension of both the production tax credit for wind and investment tax (ITC) credit for solar. Other technologies that have (and currently do through the end of 2016) qualified for these credits were not provided with extensions or modifications. Those technologies that did not receive an extension include fuel cells, geothermal, small wind energy, microturbines, and combined heat and power (CHP). Fuel cells, microturbines and CHP utilize natural gas as an energy source and are viewed as emerging markets for natural gas utilities. In order to avoid serious market disruption to and provide for short- to mid-term planning for still nascent industries, AGA is working to extend the tax credit this year. Tax Parity: S. 2378 - Waterway LNG Parity Act of 2015. This bill amends the Internal Revenue Code to modify the excise tax rate for the Inland Waterways Trust Fund to equal 29 cents per gallon or the per energy equivalent of a gallon of diesel in the case of liquefied natural gas, as defined by this Act. Currently, the fuel tax on liquefied natural gas (LNG) vessels is the same as the diesel tax on a per-gallon basis. However, because a gallon of LNG contains less energy than a gallon of diesel, in effect LNG is taxed at 170 percent of the diesel tax rate.

General discussion of proposals to amend foreign earnings taxation provisions General discussion of proposals to repatriate foreign earnings General discussion of proposals to develop a dividend exemption system General discussion of proposals to extend tax credits that expired at the end of 2014 Discussion of draft legislation to amend the Internal Revenue Code of 1986 to extend the energy credit for certain property under construction General discussion of renewable energy tax credits General discussion of natural gas vehicle / infrastructure tax credits General discussion of deductibility of interest expenses General discussion of carryover period for charitable expense deductions General discussions of the Senate Finance Committee Working Group on International Tax Discussion draft of the American Business Competitiveness Act re foreign earnings taxation rules H.R. 1430 - Permanent CFC Look-Through Act of 2015 - all aspects H.R. 905 - LNG Excise Tax Equalization Act of 2015 - all aspects H.R. 4016 - To extend the limitation on the carryover period for excess corporate charitable contributions - all aspects General discussion of Congressional response to the final reports of the Organisation for Economic Development and Coordination's Base Erosion and Profit Shifting project H.R. 4441 - Aspects related to taxation H.R. 2029 - Providing appropriations for Military Construction and Veterans Affairs Appropriations - Amended sections extending and making permanent federal tax incentives The Protecting Americans from Tax Hikes (PATH) Act of 2015 - amending or making permanent federal tax incentives S. 386 - Mobile Workforce State Income Tax Simplification Act - all aspects H.R. 2315 - Mobile Workforce State Income Tax Simplification Act - all aspects H.R. 3431 - Waterway LNG Parity Act of 2015 - all aspects S. 2378 - Waterway LNG Parity Act of 2015 - all aspects

S. 33 - LNG Permitting Certainty and Transparency Act - All aspects of the bill H.R. 351 - LNG Permitting Certainty and Transparency Act - All aspects of the bill H.R. 287 - American Job Creation and Strategic Alliances LNG Act - All aspects of the bill H.R. 428 - Export American Natural Gas Act of 2015 - All aspects of the bill H.R. 161 - Natural Gas Pipeline Permitting Reform Act to facilitate permitting of natural gas pipeline infrastructure - All aspects of the bill S. 2276 - SAFE PIPES Act - All Aspects of the bill H.R. 3431 - Waterway LNG Parity Act of 2015 - All aspects of the bill General discussion regarding legislative proposals to change rules addressing emissions from natural gas transmission and distribution infrastructure S. 2012 - Energy Policy Modernization Act of 2015 - All aspects of the bill S. 2378 - Waterway LNG Parity Act of 2015 - All aspects of the bill

Client expense: $590,000 · Firm income: Not reported

Government targets: Commodity Futures Trading Commission (CFTC), Energy, Dept of, Environmental Protection Agency (EPA), Executive Office of the President (EOP), HOUSE OF REPRESENTATIVES, Office of Management & Budget (OMB), Pipeline & Hazardous Materials Safety Administration, SENATE, Treasury, Dept of

Support lower rates on taxation of dividends. Tax reform proposals. Tax extenders. Promote the development of the natural gas vehicle market by supporting various incentives. Support incentives to produce biogas. Support incentives for high efficiency natural gas furnaces, boilers and water heaters (25C tax credits). Support incentives for energy efficiency buildings (179D). Tax Credits: The carryover of excess corporate charitable contributions. This issue arose in H.R.4016 - to amend the Internal Revenue Code of 1986 to extend the limitation on the carryover of excess corporate charitable contributions. This bill would amend the Internal Revenue Code to increase the carryover period for charitable contributions from 5 years to 20 years. Increasing the 5 year carryover period to 20 years would eliminate the penalty present in current law that is particularly problematic for our companies, which operate in regulated industries and generally make significant annual charitable contributions to community charities in their operating jurisdictions. This issue is more acute for companies in our industries - regulated electric and gas utilities - because we are among the most capital intensive industries in the country. Each year, the electric and gas utilities are spending more than $100 billion in investments to improve system safety and reliability while offering an important source of much-needed, high-quality jobs. Tax Credits: The investment tax credit for combined heat and power. This issue arose in H.R. 2657 - Power Efficiency and Resiliency Act (POWER Act) - to alter Section 48 of the Internal Revenue Code of 1986 to increase and alter the investment tax credit for combined heat and power. This bill would amends Section 48 of the tax code to provide parity for combined heat and power (CHP) with other forms of energy. The bill would increase the investment tax credit for CHP from 10% to 30% and would apply to the first 25 MW of a project instead of the first 15MW. Tax Parity: S. 1516 - Power Efficiency and Resiliency Act (POWER Act) This bill would amends Section 48 of the tax code to provide parity for combined heat and power (CHP) with other forms of energy. The bill would increase the investment tax credit for CHP from 10% to 30% and would apply to the first 25 MW of a project instead of the first 15MW. Tax Credits: Combined Heat and Power, Fuel Cells and Microturbines Investment Tax Credit Extension Past 2016. At the end of 2015 connected to the omnibus spending and tax legislation, Congress passed a long term extension of both the production tax credit for wind and investment tax (ITC) credit for solar. Other technologies that have (and currently do through the end of 2016) qualified for these credits were not provided with extensions or modifications. Those technologies that did not receive an extension include fuel cells, geothermal, small wind energy, microturbines, and combined heat and power (CHP). Fuel cells, microturbines and CHP utilize natural gas as an energy source and are viewed as emerging markets for natural gas utilities. In order to avoid serious market disruption to and provide for short- to mid-term planning for still nascent industries, AGA is working to extend the tax credit this year. Tax Parity: S. 2378 - Waterway LNG Parity Act of 2015. This bill amends the Internal Revenue Code to modify the excise tax rate for the Inland Waterways Trust Fund to equal 29 cents per gallon or the per energy equivalent of a gallon of diesel in the case of liquefied natural gas, as defined by this Act. Currently, the fuel tax on liquefied natural gas (LNG) vessels is the same as the diesel tax on a per-gallon basis. However, because a gallon of LNG contains less energy than a gallon of diesel, in effect LNG is taxed at 170 percent of the diesel tax rate.

General discussion of proposals to amend foreign earnings taxation provisions General discussion of proposals to repatriate foreign earnings General discussion of proposals to develop a dividend exemption system General discussion of proposals to extend tax credits that expired at the end of 2014 Discussion of draft legislation to amend the Internal Revenue Code of 1986 to extend the energy credit for certain property under construction General discussion of renewable energy tax credits General discussion of natural gas vehicle / infrastructure tax credits General discussion of deductibility of interest expenses General discussion of carryover period for charitable expense deductions General discussions of the Senate Finance Committee Working Group on International Tax Discussion draft of the American Business Competitiveness Act re foreign earnings taxation rules H.R. 1430 - Permanent CFC Look-Through Act of 2015 - all aspects H.R. 905 - LNG Excise Tax Equalization Act of 2015 - all aspects H.R. 4016 - To extend the limitation on the carryover period for excess corporate charitable contributions - all aspects General discussion of Congressional response to the final reports of the Organisation for Economic Development and Coordination's Base Erosion and Profit Shifting project H.R. 2029 - Providing appropriations for Military Construction and Veterans Affairs Appropriations - Amended sections extending and making permanent federal tax incentives The Protecting Americans from Tax Hikes (PATH) Act of 2015 - amending or making permanent federal tax incentives S. 386 - Mobile Workforce State Income Tax Simplification Act - all aspects H.R. 2315 - Mobile Workforce State Income Tax Simplification Act - all aspects H.R. 3431 - Waterway LNG Parity Act of 2015 - all aspects S. 2378 - Waterway LNG Parity Act of 2015 - all aspects

Client expense: $640,000 · Firm income: Not reported

S. 33 - LNG Permitting Certainty and Transparency Act - All aspects of the bill H.R. 351 - LNG Permitting Certainty and Transparency Act - All aspects of the bill H.R. 287 - American Job Creation and Strategic Alliances LNG Act - All aspects of the bill H.R. 428 - Export American Natural Gas Act of 2015 - All aspects of the bill H.R. 161 - Natural Gas Pipeline Permitting Reform Act to facilitate permitting of natural gas pipeline infrastructure - All aspects of the bill S. 2276 - SAFE PIPES Act - All Aspects of the bill H.R. 3431 - Waterway LNG Parity Act of 2015 - All aspects of the bill General discussion regarding legislative proposals to change rules addressing emissions from natural gas transmission and distribution infrastructure S. 2012 - Energy Policy Modernization Act of 2015 - All aspects of the bill S. 2378 - Waterway LNG Parity Act of 2015 - All aspects of the bill

Client expense: $640,000 · Firm income: Not reported

Government targets: Commodity Futures Trading Commission (CFTC), Energy, Dept of, Environmental Protection Agency (EPA), Executive Office of the President (EOP), HOUSE OF REPRESENTATIVES, Office of Management & Budget (OMB), Pipeline & Hazardous Materials Safety Administration, SENATE, Treasury, Dept of

Support lower rates on taxation of dividends. Tax reform proposals. Tax extenders. Promote the development of the natural gas vehicle market by supporting various incentives. Support incentives to produce biogas. Support incentives for high efficiency natural gas furnaces, boilers and water heaters (25C tax credits). Support incentives for energy efficiency buildings (179D). Tax Credits: The carryover of excess corporate charitable contributions. This issue arose in H.R.4016 - to amend the Internal Revenue Code of 1986 to extend the limitation on the carryover of excess corporate charitable contributions. Tax Credits: The investment tax credit for combined heat and power. This issue arose in H.R. 2657 - Power Efficiency and Resiliency Act (POWER Act) - to alter Section 48 of the Internal Revenue Code of 1986 to increase and alter the investment tax credit for combined heat and power. Tax Parity: S. 1516 - Power Efficiency and Resiliency Act (POWER Act) This bill would amends Section 48 of the tax code to provide parity for combined heat and power (CHP) with other forms of energy. Tax Credits: Combined Heat and Power, Fuel Cells and Microturbines Investment Tax Credit Extension Past 2016. At the end of 2015 connected to the omnibus spending and tax legislation, Congress passed a long term extension of both the production tax credit for wind and investment tax (ITC) credit for solar. Other technologies that have (and currently do through the end of 2016) qualified for these credits were not provided with extensions or modifications. Those technologies that did not receive an extension include fuel cells, geothermal, small wind energy, microturbines, and combined heat and power (CHP). Tax Parity: S. 2378 - Waterway LNG Parity Act of 2015. This bill amends the Internal Revenue Code to modify the excise tax rate for the Inland Waterways Trust Fund to equal 29 cents per gallon or the per energy equivalent of a gallon of diesel in the case of liquefied natural gas, as defined by this Act.