NGV Industry Seeks an Officially Sanctioned Diesel Gallon Equivalent
Months of urging the industry to step up and speak out, including a special section at early May’s ACT Expo 2014 meeting in Southern California, comes to a head next week as the National Conference on Weights and Measures votes on whether to establish an official diesel gallon equivalent for CNG and LNG sales. updated July 9
NGV advocates want to make this easy price comparison possible for diesel as well as gasoline.
“The adoption of the DGE standard is a critical issue that will have lasting effects on the future of the industry,” NGVAmerica said in a release issued on July 9. “The DGE standard is universally supported by industry and would allow for the ready comparison of CNG and LNG with diesel… a common-sense unit of sale for fuel retailers and users.”
“Uniformity and Clarity’
“The adoption of the DGE standard would provide greater uniformity and clarity for the continued use of natural gas as a transportation fuel,” said association president Rich Kolodziej.
“When people make business decisions, they want an easy way to make comparisons,” America’s Natural Gas Alliance VP Amy Farrell says in the NGVAmerica release. “This is a good, common-sense direction that is consistent and understandable.”
Also in question is whether the gasoline gallon equivalent that’s been in use for some 20 years will remain in force. New blends of gasoline and varying energy contents have prompted some officials to call for compressed natural gas and liquefied natural gas to be sold by their metric mass, rather than their equivalency to liquid fuels.
“This unit of measurement for LNG fuel would not be familiar to consumers and would lead to confusion,” Chart Industries chairman, CEO and president Sam Thomas said in a letter of support for the DGE standard.
Myriad Technical Points
Numerous industry organization have written in support of the DGE and the continued use of the GGE, arguing that a shift to metric mass measurements would make comparison pricing difficult.
Besides ANGA, NGVAmerica reports the support of the American Gas Association, the American Public Gas Association, the American Trucking Associations, the National Association for Convenience Stores, the Society of Independent Gasoline Marketers of America, and the Truck Renting and Leasing Association for a DGE standard.
Recent developments, according to Jeff Clarke of NGVAmerica, include differences between the NCWM and IRS definitions of the current GGE – “concerns that we hope,” he says, “can be addressed later this year with the IRS.”
“As the deadline looms,” Clarke says, “we continue to work to convince additional states on the merits of adopting the DGE standard and continuation of the GGE standard as the best way to dispense natural gas at retail stations.
‘Momentum Is on Our Side’
“The vote could be close since you have to have 27 states vote for the measure and I believe 42 states are registered to attend the meeting. I do think momentum is on our side… as more states are signaling they support the DGE approach.”
The 99th NCWM Annual Meeting takes place July 13-17 at the Westin Book Cadillac Detroit in Detroit, Mich. The Natural Gas Steering Committee meets on morning of Sunday, July 13.
“I expect that at least a dozen industry representatives will be on hand to comment in support of the measure,” Clarke told F&F.
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Source: NGVAmerica with Fleets & Fuels follow-up