Congressional Correspondence

We, collectively, wish to express our continued support for the diesel gallon equivalent (DGE) standard for natural gas. We continue to advocate for the adoption of the DGE standard and urge the NCWM regional conferences which are meeting this fall to support the DGE proposal by choosing to retain this measure as a voting issue on future agendas. We were disappointed that the DGE standard failed to be approved at the NCWM Annual Meeting this summer, despite overwhelming industry support and support from the majority of state representatives in attendance. For the second year in a row, the move to adopt the DGE standard was slowed by officials voting in the House of Delegates. These local officials, in some instances, are from states that have already enacted legislation recognizing the merits of the DGE standard. Additionally, these same officials will be called upon to implement the policy that they are voting against. Despite this setback, we are not deterred as we believe the DGE measure is the most rational proposal for a national standard. The merits of a national DGE standard are clear. In July of this year, the U.S. Congress passed legislation that adjusts the federal motor fuels tax to ensure that LNG, when used on federal highways, will be taxed according to its energy content using the DGE as measurement. This provision will go into effect on January 1, 2016 and ensures that natural gas and diesel-based fuels are taxed at the same rate according to their energy content. Furthermore, ten states have already enacted legislation or adopted regulations recognizing the DGE as a unit of sale, and twenty-six states are already taxing LNG based upon the DGE. Notably, no state authorities have proposed an alternative to using the DGE for selling LNG. We believe that through further education and discussion, the voting members of the NCWM House of Representatives and the House of Delegates will recognize the merits of a national DGE standard. As representatives of industries which already embrace the DGE in our commercial practices, we urge the regional conferences to support retaining the DGE proposal that was included in Publication 16 as a voting issue in the upcoming year. Sincerely, American Gas Association American Public Gas Association America’s Natural Gas Alliance American Trucking Association National Association of Convenience Stores National Association of Truck Stop Operators NGVAmerica Society of Independent Gasoline Marketers of America Truck Renting and Leasing Association Cc: Don Onwiler Executive Director National Conference of Weights and Measures 1135 M Street, Suite 110 Lincoln, Nebraska 68508 don.onwiler@ncwm.net Rich Lewis Chair, Laws and Regulations Committee Georgia Department of Agriculture 19 Martin Luther King Drive, Rm 321 Atlanta, Georgia 30334 richard.lewis@agr.georgia.gov Mahesh Albuquerque Chair, Specifications and Tolerances Committee Director, Colorado Division of Oil and Public Safety 633 17th Street, Suite 500 Denver, CO 80202-3610 mahesh.albuquerque@state.co.us

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