NGV Industry Rallies to Support the Adoption of the DGE Standard for LNG

 July 16, 2015

Washington, D.C. — NGVAmerica, the natural gas vehicle industry and its advocates are rallying in support of the adoption of the diesel gallon equivalent (DGE) standard for liquefied natural gas (LNG) that will be voted on at the National Conference on Weights and Measures (NCWM) meeting to be held July 19–23 in Philadelphia, PA. The adoption of the DGE standard is an important issue that will help to further advance the natural gas vehicle (NGV) industry.

In bringing the DGE standard issue to Philadelphia, NGVAmerica was joined by natural gas industry leaders, including the American Gas Association (AGA), America’s Natural Gas Alliance (ANGA), and the American Public Gas Association (APGA), as well as trade allies that have expressed their support for the DGE approach as a sensible and necessary way to dispense, market and sell natural gas. These organizations include the American Trucking Associations (ATA), National Association of Convenience Stores (NACS), National Association of Truck Stop Operators (NATSO), Truck Renting and Leasing Association (TRALA) and the Society of Independent Gasoline Marketers of America (SIGMA)

In 1994, standards adopted by NCWM require compressed natural gas (CNG) to be sold in gasoline gallon equivalents (GGE). 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 standard will 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.

In addition to providing a common-sense unit of sale for fuel retailers and users, the DGE standard provides the benchmark for consistency with taxation methods and creates efficiencies associated with accounting and record keeping requirements. Since the DGE proposal was first put forward, twenty-six states now use the DGE for taxation of LNG, and ten 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,” said Kathryn Clay, Vice President of Policy Strategy at AGA. “The NCWM has a real opportunity to lay this important issue to rest in Philadelphia.”

“When consumers make business decisions, they want an easy way to make comparisons,” said Amy Farrell, Vice President of Market Development at ANGA. “This is a good, common-sense direction that is consistent and understandable.”

“We need to get this right and take corrective action,” said Glen Kedzie, ATA Vice President and Energy & 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.

“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,” said 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.

For more information on this issue and the upcoming NCWM meeting, visit the NGVAmerica website here.