Alternative Fuels and IFTA 2009 IFTA Annual Business Meeting Alternative Fuels Committee

Alternative Fuels Committee (AFC) COMMITTEE MEMBERS:  Kim Craig – Committee Chair, Ontario Ministry of Revenue  Fred Alleman - Audit Committee, Pennsylvania Department of Revenue  Cathy Beedle – Program Compliance Review Committee, Nebraska Department of Motor Vehicles  Don Boswell – Law Enforcement Committee, Virginia Department of Motor Vehicles  Donna Burch – Industry Advisory Committee, Ryder Transportation Services  Gary Frohlick – ex-officio Board Member, Saskatchewan Finance  Garry Hinkley – Clearinghouse Committee, Maine Bureau of Motor Vehicles  Mark Osbaldeston – Attorneys’ Section Committee, Ontario Ministry of Revenue  Robert Pitcher – Industry Advisory Committee, American Trucking Associations  Jan Skouby – Dispute Resolution Committee, Missouri Motor Carrier Services BOARD LIAISONS  Andrew Foster (Lead)  Pat Platt  Sheila Rowen IFTA, Inc. ADVISORS  Lonette Turner  Jessica Eubanks  Tom King

History Emerging alternative fuels industry 2005 Membership resolution ratified 2007 AFC formed with representation from each IFTA committee and conducted survey Presented results from survey and received support to move forward with developing database and drafting ballots to incorporate the membership resolution 2008 Drafted/presented ballots to incorporate the intent of the membership resolution into the Agreement and to include reporting requirements for new motor fuel types Presented draft of Alternative Fuels Report database for biodiesel

2008 Ballots Context/Discussion: 2005 Membership Resolution Introduction of tax rate incentives for bio-fuels Industry appeal for uniformity Impossible to report the use of interchangeable fuel with complete precision under IFTA Potential for further undermining of base jurisdiction reporting model Although ballots withdrawn, awareness raised and clearer understanding of the risks to the administration and collection of motor fuel use taxes under IFTA, where there are differing tax rates for blended/interchangeable fuels. Many jurisdictions opting for non-IFTA related incentives (i.e. producers credit, income tax credit)

Alternative Fuels Report - Database Currently captures details related to biodiesel Link from Exemption Database Summary page of what jurisdictions offer for biodiesel:  no incentive, refund or exemption  refund  exemption  non-IFTA related Detailed page provides:  effective date  type  legislation description  instructions for IFTA licensee  link to website information

Next Steps for Member Jurisdictions Jurisdictions need to complete the ‘Alternative Fuels Report’ by September 2009 Provide feedback to the AFC on the report – comments/suggested changes

Next Steps for AFC Board decision to maintain the AFC as a special committee Look at emerging fuel efficiency technologies (i.e. mileage based taxing model)? Include other alternative fuels in database? Other suggestions?