Industry Standard MPG 2007 IFTA/IRP Audit Workshop

1. Industry Standard MPG2007 IFTA/IRP Audit Workshop Mark Byrne Joel Foreman Nebraska Dept of Motor Vehicles

2. Introduction • Nebraska implemented an Industry Standard MPG guideline in 2000. The purpose of the Industry Standard was to aid the auditor in determining a reasonable reported or audited MPG. • It performs in conjunction with IFTA Audit Manual, Section A550.100 as an audit tool. • It does NOT replace the 4.0 MPG adjustment.

3. The chart information was provided with assistance of manufacturers, dealers and mechanics in the industry. • It can help determine if the auditor is missing fuel receipts or if the carrier over-reported miles. • It helps establish consistent audits. • It provides fair MPG treatment for the carrier operating power units less than 80,000 CGW.

4. What is the Industry Standard? • How is the chart used? • What can it reveal? • Is it always correct? • What if the carrier disagrees with the Industry Standard MPG? • Can it be defended in a hearing?

5. Year and weight classes. YEAR1975-8485-9596-20002001-0203-05 WEIGHT 3/4 & 1-ton pickups The year and weight of the 28K - 32K power unitwere grouped by 34K - 44K the trucking industry’s 46K - 48K manufacturers,dealers and 50K - 78K mechanics. 80K plus • The criteria used to group weight classes were based on mechanical and physical designs. For example: frame size, wheel base, number of axles, engine size, transmission type, tire size, etc.

6. Industry StandardChart INDUSTRY STANDARD FOR WEIGHT CLASS MPG *3 YEAR1975-841985-951996-20002001-022003-05 WEIGHT ¾ - 1 ton pickups 7MPG 10MPG 13MPG *4 *4 >28K – 33K 8MPG 9MPG 11MPG 10MPG 10MPG *1 34K – 44K 7MPG 9MPG 11MPG 9MPG 9MPG 46K – 48K 7MPG 9MPG 10MPG 8MPG 8MPG 50K – 78K 6MPG 8MPG 10MPG 8MPG 8MPG 80K plus 5MPG 5.50MPG 6.00 MPG 6.25MPG 5.8MPG *2 *1 For pickups rated between 26,001 through 32,000 pounds (Loaded average) *2 Semis rated at 80,000 and over reflect loaded average MPG’s. All other weight classes are considered empty weight. When calculating a new MPG, do not exceed these MPG figures since these MPG’s Are figured on the “high side” as “empty weight” and not the lower MPG as when a truck is loaded. *3 2003-05 Lower MPG’s due to new Federal emission controls. *4 Due to the wide variance’s of this weight class, see supervisor if over 14 MPG. If you need to exceed the MPG’s listed above, have the truck computer read.

7. Pickups and trucks rated at 28K-32K and 80K – 94K semis • These three weight classifications were reported as an average “loaded weight” due to a wider variety of manufacturer’s MPGs. Average loaded weight means loaded 50% of the time.

8. The MPG listed with each weight class was given as the “best case scenario”. In other words; An experienced, good driver on a perfect day, with no wind, flat ground, and perfect gearing. • The 28,000 – 32,000 and 80,000 – 94,000 weight classes are considered “loaded weight” MPGs. • All other weight class MPGs listed are “empty weight” both ways.

9. What can it reveal? • Have you ever had concerns what is a reasonable MPG for a particular power unit? The chart makes it easy to determine what is a reasonable MPG based on factual research. • Have you ever noticed “spikes” in reported or audited MPGs? When using the MPG chart as a guide, “spikes” in MPGs above the Industry Standard have been found to be the result of a missing fuel ticket(s) or over-reported miles.

10. Is the chart always correct? • During the past six years since Industry Standards were first used in Nebraska, only four carriers have provided information showing an MPG greater than the Industry Standard MPG. What if the carrier disagrees with the Industry Standard? • We would amend the audit findings in cases where the Industry Standard was applied; when the carrier provides a computer diagnostic print out of the truck’s computer indicating a higher MPG.

11. We have found most trucks produced since 1995 (that we have seen) have an “on board” computer that records a variety of information such as MPG, miles driven, gallons consumed, idle time, etc. • This information can be retrieved by a factory authorized mechanic, using a factory authorized diagnostic computer. This information can reveal an alternative MPG. • Again, 4.0 MPG audits are not affected.

12. Dealer tested - engine diagnostic

13. Hearings • Auditors using the Industry Standard have a reliable source of information showing what a power unit is mechanically capable of attaining. • It was created by auditors, for auditors, with the help of the people that designed, manufactured, sell, and repair tractor/truck units. • It helps take the guess work out of what is a reasonable MPG. It helps identify possible missing information when the MPGs rise above the standard for the unit under audit.

14. In the case where a true MPG cannot be established due to marginal records, it provides an MPG that could be “backed into” to determine miles or fuel use. • Carriers find it more difficult to disagree with the audit results when informed that the MPG came from the people that built and repair the trucks they are operating. • It offers some consistency between auditors and audits. It also offers the hearing officer and attorneys more assurances that we have done our research, especially when carrier records were not complete enough to assure a true and accurate MPG.

15. Additional Information • Nebraska has created an audit procedure that works in conjunction with IFTA Section A550.100 and the use of the Industry Standard. It guides our audit staff on when, where, and how to apply an Industry Standard MPG. • If interested or you have questions, contact us! Joel Foreman – (402) 471- 3899 Mark Byrne - (402) 471- 0269