Motor Fuel Accomplishments and Challenges:

PowerPoint presentation: MFAandC.ppt

Motor Fuel Accomplishments and Challenges: - Slide 1

2003 Motor Fuel Workshops: Atlanta, GA and Sacramento, CA

Introduction I - Slide 2

Accomplishments:

• Re-Assessment
• Smart Input tool
• Motor Fuel (MF) Reviews
• Data verification
• Publications: 1) Process Review 2) Brochure and 3) Community of Practice (COP)

Introduction II - Slide 3

Challenges:

• Motor fuel reviews and follow-up on: Quality of reviews, Quality improvements, and Risk assessment
• Division Administrator emphasis
• Communication

Introduction III - Slide 4

Changing environment

• Reauthorization
• Reporting changes
• Attribution analysis changes
• Modeling data (gasohol in particular)
• Communication

Accomplished: Re-Assessment - Slide 5

Time line

• Began in late 1998
• Shortly after TEA-21 passed

Methodology: Working group made up of:

• State experts
• AASHTO
• FTA (Federation of Tax Administrators)
• FHWA

Accomplished: Re-Assessment - Slide 6

General Accounting Office (GAO)

• Concurrent assessment
• Cooperative effort
• Substantial agreement on conclusions

GAO identified several actions

• Verification of State MF reporting
• Document FHWA attribution methodology
• Independent review of FHWA methodology
• Evaluate EXSTARS-EXFIRS for validation

Accomplished: Re-Assessment - Slide 7

FHWA identified several areas for revision

• Federal Register Notice
• Comments received
• General support for the proposals

Publication: Attribution and Apportionment of Federal Highway Tax Revenues: Process Refinements

Accomplished: Smart Input tool - Slide 8

Developed and tested Smart Input Tool

• Version 1.03 available May, 2002
• Installation and technical support
• Used by 48 States
• Must be used for data starting January 2002
• Generally considered easy-to-use

More detail later

Accomplished: MF Reviews - Slide 9

• Motor Fuels Review Working Group
• Continuous Process Improvement Model
• Discussed at last year's workshop
• About 27 have been reported
• Quality varies
• Want your feedback on improving this process

Accomplished: Data verification - Slide 10

Process review versus data verification

Why verify?

• Old procedure - data hand-entered
• Data needs checking until new procedures

Verification memo

• Just went out
• Due April 15
• Probably two rounds

Accomplished: Publications - Slide 11

• Attribution and Apportionment of Federal Highway Tax Revenues: Process Refinements
• Your State's Share: Attributing Federal Highway Revenues to Each State
• Community of Practice (COP)

Challenges: MF Reviews and Follow-up.- Slide 12

Quality of reviews

• Continuous Process Improvement model
• Left open to interpretation
• Wide range of quality

Quality improvements

• Need to bring up the average
• Three core items: Procedures document, Procedures assessment, and Oversight plan

Risk assessment

Challenges: Communication

• Keep Division in loop
• Video conference options
• Community of Practice
• Promotional brochures

Changing Environment: Reauthorization

• TEA-21 ends September 30, 2003
• Due for re-authorization
• Administration-proposed legislation
• What Congress will do is unknown
• No significant MF changes expected

Changing Environment: Reporting Changes

• Must use the Smart Input Tool
• Transfer date is January 2002 -
• Any revision prior to 1 / 02, use old method
• Any submission or revision after 1 / 02, use Smart Input Tool
• Review some of the Input Tool features

Changing Environment: Attribution Analysis Changes

• FHWA will be treating some data differently 1) On-highway public diesel use 2) Alternative fuels reporting, and 3) Loss allowance treatment
• Reporting changes: 1) For alternative fuels, and 2) State responsibilities

Changing Environment: Modeling Data

FHWA held a models workshop: March 7-8, 2002

Stakeholder input:

• Models generally acceptable
• Focus on the big picture
• Follow-up on State/Federal discrepancy 1) Total gallons and 2) Reported versus modeled gallons

Changing Environment: Gasohol Model

• Hot topic in reauthorization
• Conversion from MTBE to ethanol
• Current model emphasized location
• That assumption will become invalid

In Summary

• Identified accomplishments
• Identified challenges
• Identified changes in the MF environment
• That's the background - let's move to details