IFTA – Dual Fuel Reporting BEST PRACTICES

1. IFTA – Dual Fuel Reporting BEST PRACTICES August 18, 2016 Indianapolis, IN Hugh Hughson (BC)

2. Overview • Change in the recommended reporting methodology • Reminders (effective dates) for: • Ballot #3 - 2013 • Ballot #5 - 2105

3. Original Methodology Dual fuel vehicles must be treated and reported separately (e.g., gasoline fleet, diesel fuel fleet, LNG fleet, dual fuel fleet) Duel fuel vehicles must be treated and reported as two vehicles (e.g., DL and DLG)

4. Revised Methodology • Duel fuel vehicles are not separately reported • Dual fuel vehicles’ fuel purchases and distances travelled (after pro-rating) are added/combined with other fleets (e.g., DL is added to D, DLG is added to LNG)

5. Original Methodology

6. Revised Methodology

7. Rational/Benefits • Fewer dual fuel vehicles than originally anticipated • Skewing concerns previously identified are in part are related to IFTA rounding rules and can go either way • No tax return or system changes and associated costs required for jurisdictions or carriers (i.e., additional fuel types and rows) • Less complexity and fewer potential errors by tax preparers

8. Reminders • Ballot #03-2013 (CNG) • A Gallon equals 126.67 cubic feet or 5.66 pounds • A Liter equals 1.0 cubic meters or 0.678 kilograms • Effective Date - July 1, 2015 • As per Lonette’s July 15, 2016 memo: • If needed please revise your tax rates ASAP; or • Indicate in your jurisdiction’s IFTA Footnote, your statutory CNG tax rate and units of measure, if the measures used in the statute are different than the ballot

9. Reminders • Ballot #05-2015 (LNG) • a diesel gallon equivalent 6.06 pounds • a diesel liter equivalent 0.73 kilograms • Effective July 1, 2017(but please feel free to update your tax rates earlier)

10. Questions / Discussion

11. Thanks!