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IFTA Amendment on CNG Adopted

Friday, January 31, 2014  
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Voting closed last week on the current proposals to amend the International Fuel Tax Agreement. Only three ballots were up this time for the states and provinces to vote on. Two got the requisite 75 percent approval for adoption, and one failed. Those passing were the critical amendment for IFTA to adopt a standard conversion factor for a gallon of compressed natural gas. The amendment defines a CNG gallon for purposes of IFTA reporting at 126.67 cubic feet of gas at standard temperature and pressure, or 5.66 pounds of gas (and the metric equivalents). These are the same factors used by the federal Internal Revenue Service, and represent an amount of CNG that contains the energy in a standard gallon of gasoline. Without such a standard, the reporting of CNG for IFTA would be practically impossible. The new definition becomes effective July 1, 2015. The other proposal that was adopted prescribes certain features and data that jurisdictions must have for their on-line IFTA reporting systems. That amendment was also needed, but doesn’t go quite far enough, as it omits to require states and provinces to provide some means for an IFTA licensee to report non-taxed or non-receipted fuel. The ballot which failed would have altered the definition of a "qualified motor vehicle,” in an attempt to clarify for a few states just what configurations are subject to IFTA reporting. Evidently many of the jurisdictions felt this change would be ill-advised. Earlier this fall, a fourth ballot, proceeding under a different IFTA procedure, was defeated. It would have allowed an IFTA jurisdiction to provide its licensee carriers with electronic credentials.