1. Resolution of The Members of the International Fuel Tax Agreement - Alternative Fuels (Blended) IFTA, Inc Board of Trustees as presented by Kim Craig

2. Alternative Fuels  Emergence of blends – i.e. biodiesel, water, ethanol  Biodiesel made from renewable resources & potential environmental benefits  Biodiesel may be used alone or blended

3. Incentives, Exemptions, Reduced Tax Rates To encourage use of ‘environmentally friendly’ fuels Jurisdictions (e.g. Illinois, Ohio, Ontario & Texas) offer incentives, exemptions & reduced tax rates

4. IFTA & Alternative Fuels??  Under IFTA: –Licensees required to keep records and report each fuel type separately –Licensees required to submit claims for refunds directly to jurisdiction (R830) –Member jurisdiction required to provide tax rates for each fuel type –Member jurisdictions maintain authority to exempt fuel use

5. Concerns – Blended (Interchangeable Fuels)  Poses a risk to the basic principles of IFTA  Tax evasion problem  Licensees unable to correctly report  Difficult to audit the fuel and distance records  Infinite number of tax rates  Fuel may be consumed in a jurisdiction not offering the incentive

6. Resolution  Member jurisdictions: –Believe differing tax rates for blended fuels is not consistent with a uniform motor carrier fuel tax program –Agree that blended fuels should be reported as one fuel type/tax rate –Should utilize the exempt fuel use provisions (R830) when undertaking to encourage the use of alternative fuels