For purposes of this part, unless otherwise required by their context, the following definitions apply:

1. (1)

   1. (A) "Department" means and refers to the Department of Finance and Administration and its authorized agents.
   2. (B) For purposes of this part, the terms "department" and "DFA" may be used interchangeably;

2. (2)

   1. (A) "Exempt" refers to those instances or sales, uses, or storage of liquefied natural gas that otherwise would be considered taxable but meet certain express conditions set forth in 26 CAR § 168-103(b) such that the instances stated therein are free from the tax levied by Arkansas Code § 26-62-201(a).
   2. (B) No other sales, uses, or storage of liquefied natural gas are exempt;

3. (3)

   1. (A) "Gallon equivalent" or "equivalent gallon" are terms that may be interchangeably used in regard to describing the appropriate measurement of liquefied natural gas (LNG) for use in an internal combustion engine or as motor fuel.

   2. (B) Based on United States standards or industry standards, a gallon equivalent of LNG:

      1. (i) Refers to the regular grade "gasoline gallon equivalent" or "diesel gallon equivalent" of LNG; and
      2. (ii) Is measured in pounds.
   3. (C) Specifically, one gasoline gallon equivalent (1 gge) of LNG is equivalent to five and thirty-seven-hundredths pounds (5.37 lbs.) of LNG cooled to approximately negative two hundred fifty-nine degrees Fahrenheit (-259°F) at atmospheric pressure and stored in insulated cryogenic tanks.
   4. (D) One diesel gallon equivalent (1 dge) of LNG is the equivalent of six and six-hundredths pounds (6.06 lbs.) of LNG cooled to approximately negative two hundred fifty-nine degrees Fahrenheit (-259°F) at atmospheric pressure and stored in insulated cryogenic tanks;

4. (4)

   1. (A) "Liquefied natural gas" or "LNG" means natural gas that has been cooled to a liquid state and is suitable for use, distributed, or used as an alternative fuel for internal combustion engines or motors in motor vehicles.

   2. (B) LNG may also include small amounts of products commonly referred to as:

      1. (i) Methane;
      2. (ii) Ethane;
      3. (iii) Propane;
      4. (iv) Butane;
      5. (v) Heavier alkanes; and
      6. (vi) Nitrogen; and
5. (5) "Taxpayer" refers to the person responsible for remitting the taxes due to the Department of Finance and Administration pursuant to the Alternative Fuels Tax Law, Arkansas Code § 26-62-101 et seq.