NGV Industry Rallies Behind Proposed DGE Standard

Posted by NGT Staff on July 20, 2015 No Comments
Categories : Policy Watch

As the National Conference on Weights and Measures (NCWM) holds its annual meeting this week, NGVAmerica says the natural gas vehicle (NGV) industry and advocates are again rallying in support of the adoption of the diesel gallon equivalent (DGE) standard for liquefied natural gas (LNG).

Although the NCWM had voted on the DGE issue last July in Detroit, the proposal was not approved. The committee is slated to reconsider the measure at its 2015 meeting, which is being held July 19-23 in Philadelphia.

‘NGVAmerica thanks our members, industry allies and public officials for their efforts to make the DGE standard a voting issue at the NCWM meeting this summer,’ states NGVAmerica President Matthew Godlewski. ‘The adoption of the DGE standard would provide greater uniformity and clarity for the continued use of natural gas as a transportation fuel.’

NGVAmerica says natural gas industry leaders – including the American Gas Association (AGA); America's Natural Gas Alliance (ANGA); and American Public Gas Association – and trade allies – including the American Trucking Associations (ATA); National Association of Convenience Stores; National Association of Truck Stop Operators; Truck Renting and Leasing Association; and Society of Independent Gasoline Marketers of America – have expressed their support for the adoption of the DGE standard as a sensible and necessary way to dispense, market and sell natural gas.

In 1994, the NCWM adopted standards requiring that compressed natural gas (CNG) be sold in gasoline gallon equivalents (GGE). NGVAmerica says that standard has benefited consumers and industry alike because it provides a common unit for comparing the cost of CNG and gasoline.

If adopted, the DGE proposal would become a national standard for dispensing LNG in DGE units. The DGE standard is universally supported by industry and would allow for the ready comparison of LNG with diesel, NGVAmerica adds.

According to the organization, the DGE standard would also provide the benchmark for consistency with taxation methods and create efficiencies associated with accounting and record keeping requirements. Since the DGE proposal was first put forward, 26 states now use the DGE for taxation of LNG, and 10 states have enacted legislation or approved regulations recognizing the DGE as a standard for dispensing natural gas.

‘Adoption of this resolution is a common-sense vote for transparency,’ comments Kathryn Clay, vice president of policy strategy at AGA. ‘The NCWM has a real opportunity to lay this important issue to rest in Philadelphia.’

‘We need to get this right and take corrective action,’ adds Glen Kedzie, ATA's vice president and energy and environmental counsel. ‘Selling and advertising natural gas in diesel gallon equivalent units is the most practical way to communicate the value of natural gas to truckers and fleets looking to use natural gas in heavy-duty vehicles.’

For more information about this issue and the NCWM meeting, check out NGVAmerica's website here.

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