The National Conference on Weights and Measures (NCWM) has voted to approve the diesel gallon equivalent (DGE) standard as a legally authorized method of sale for natural gas that is sold as fuel for vehicles.
The DGE standard allows for the ready comparison of natural gas with diesel fuel, which is the dominant fuel used in truck applications, according to NGVAmerica.
The standard reflects the gasoline gallon equivalent (GGE) standard previously adopted by NCWM that has been in place for CNG since 1994. The adoption of this standard is expected to fill a void for liquefied natural gas (LNG), which previously lacked a uniformly recognized standard.
The adoption of the DGE standard is the product of a more than a three-year process of industry working with NCWM to adopt an approach for selling LNG. The action also means the DGE unit will also be available for CNG retailers that want to use the unit for their retail sales to truck fleets.
"NGVAmerica thanks the NCWM leadership for its thoughtful consideration of this issue and for working with the natural gas vehicle industry to get this done,” said Matthew Godlewski, president of NGVAmerica. “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.”
The DGE standard will help keep taxation methods consistent and create efficiencies associated with accounting and record keeping requirements, according to NGVAmerica.
Currently, 28 states are using DGE for taxing LNG, while ten states have enacted legislation or approved regulations recognizing DGE as a standard for dispensing natural gas.