NGV Industry Rallies to Support the Adoption of the DGE Standard in Detroit

NGVAmerica, the NGV industry and its advocates rally insupport of the adoption of the diesel gallon equivalent (DGE) standard thatwill be voted on at the National Conference of Weights and Measures (NCWM)meeting to be held July 13–17 in Detroit, Michigan. The adoption of the DGEstandard is a critical issue that will have lasting effects on the future ofthe industry.

To bring the DGE standard issue to Detroit, NGVAmericawas joined by natural gas industry leaders, including the American GasAssociation (AGA), the American Public Gas Association (APGA) and America’sNatural Gas Alliance (ANGA). Trade allies representing motor fuel retailers andusers-the American Trucking Association, National Association for ConvenienceStores (NACS), Society of Independent Gasoline Marketers of America (SIGMA) andTruck Renting and Leasing Association (TRALA)-have expressed their support forthe DGE approach as a sensible and necessary way to dispense, market and sellnatural gas.

In addition, public policy makers from across the countrysupport the DGE proposal. The Governors of Colorado and Oklahoma issued a jointletter expressing support. The Governors of Pennsylvania and Utah likewiseissued individual letters supporting the continued use of the GGE standard andadoption of a DGE standard for liquefied natural gas (LNG). Finally, fifty-fourmembers of the U.S. House of Representatives have joined together to sign ontoa letter expressing their support.

“When people make business decisions, they want aneasy way to make comparisons,” said Amy Farrell, a vice president ofAmerica’s Natural Gas Alliance. “This is a good, common-sense directionthat is consistent and understandable.”

In 1994, the natural gas industry worked with NCWM todevelop a standard that paved the way for compressed natural gas (CNG) to besold in gasoline gallon equivalents (GGE). That standard has benefitedconsumers and industry alike because it provides a common unit for comparing thecost of CNG and gasoline. Now the natural gas industry has asked NCWM to workwith it to develop a DGE standard. This new standard is needed because currentrules do not address LNG, and increasingly CNG and LNG are being used inheavy-duty applications where diesel fuel is the dominant fuel. The DGEstandard is universally supported by industry and would allow for the readycomparison of CNG and LNG with diesel.

In addition to providing a common-sense unit of sale forfuel retailers and users, the DGE standard provides the benchmark forconsistency with taxation methods and creates efficiencies associated withaccounting and record keeping requirements. Fourteen states have alreadyadopted taxation changes so that LNG is taxed based on the DGE standard andmore states are moving in this direction.

“NGVAmerica thanks our members, industry allies andpublic officials for their tireless efforts that have resulted in getting theDGE standard to the point where it is a voting issue at the NCWM Annual Meeting,”said NGVAmerica President Richard Kolodziej. “The adoption of the DGEstandard would provide greater uniformity and clarity for the continued use ofnatural gas as a transportation fuel.”

For more information on this issue and the upcoming NCWMmeeting, visit the NGVAmerica Call to Action at www.ngvamerica.org/gov_policy/fed_regs/fed_DGE_equivalent.html.

About NGVAmerica

NGVAmerica is a national organization dedicated to thedevelopment of a growing, profitable, and sustainable market for vehicles poweredby natural gas or biomethane. NGVAmerica represents more than 200 companies,environmental groups, and government organizations interested in the promotionand use of natural gas and biomethane as transportation fuels. Our membercompanies are those that produce, distribute, and market natural gas andbiomethane across the country; manufacture and service natural gas vehicles,engines, and equipment; and operate fleets powered by clean-burning gaseousfuels. For more information about NGVAmerica, visit www.ngvamerica.org.