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NCWM, Finally, Approves the DGE

August 2, 2016 in CNG, LNG, milestones, NGVs by Rich Piellisch  |  No Comments

NGVAmerica Commends Weights & Measure Action
On Long-Sought Diesel Gallon Equivalent Recognition

The National Conference on Weights and Measures has voted to approve the diesel gallon equivalent as a legally authorized method of sale for natural gas that is sold as motor fuel, ending a long-running effort by NGVAmerica and others to simplify the sale, especially of liquefied natural gas.

LNG station in California – photo courtesy NGVAmerica

LNG station in California – photo courtesy NGVAmerica

“The DGE standard allows for the ready comparison of natural gas with diesel fuel,” the association says. It complements the GGE/gasoline gallon equivalent that has been in place for compressed natural gas since 1994 “and that has aided consumers and retailers alike.

“Importantly, the adoption of this standard fills a void for liquefied natural gas (LNG), which although sold by most retailers in DGE units, previously lacked a uniformly recognized standard,” states an NGVAmerica announcement.

‘A Long Road’

“A long road but glad we crossed the finish line to a DGE standard,” states a Clean Energy Fuels blog post.

NGVAmerica president Matt Godlewski

NGVAmerica president Matt Godlewski

“This successful vote was the culmination of years of hard work by NGVAmerica staff, our members, industry allies and public officials with the shared goal of transparency for the customer,” said NGVAmerica president Matt Godlewski.

The DGE unit will also be available for CNG retailers who want to use the unit for their retail sales to truck fleets.

A Better Basis for Taxes Too

NGVAmerica noted that addition to providing “a common-sense unit of sale for fuel retailers and consumers, the DGE standard provides the benchmark for consistency with taxation methods and creates efficiencies associated with accounting and record keeping requirements.

“Twenty-eight states currently use the DGE for taxing LNG, and ten states have enacted legislation or approved regulations recognizing the DGE as a standard for dispensing natural gas.”

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Source: NGVAmerica with Fleets & Fuels follow-up

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