DISPUTE RESOLUTION DISPUTE RESOLUTION PROJECT UPDATEPROJECT UPDATE

July 2007July 2007

IFTA Annual Business IFTA Annual Business MeetingMeeting

Dispute Resolution Project Dispute Resolution Project EvolutionEvolution

Goal: Enhance confidence in the Goal: Enhance confidence in the agreement by assertively pursuing agreement by assertively pursuing enforcement and complianceenforcement and compliance

Action: Put teeth into the Action: Put teeth into the compliance review processcompliance review process

2004 Strategic Plan

Dispute Resolution Project Dispute Resolution Project VisionVision

Create process for non-compliance issues identified through PCR to be addressed through dispute resolution process

Dispute Resolution ProjectDispute Resolution ProjectTasks CompletedTasks Completed

• Membership discussionMembership discussion

• Established interestEstablished interest

• Identified concerns about materialityIdentified concerns about materiality

2004 ABM

Dispute Resolution ProjectDispute Resolution ProjectTasks CompletedTasks Completed

• Fall 2004 through December 2006Fall 2004 through December 2006

• Compliance review requirements Compliance review requirements committeecommittee

• Compliance review ballot Compliance review ballot development committeedevelopment committee

• 8 Ballots passed in 20068 Ballots passed in 2006

Refined Governing Documents

Dispute Resolution ProjectDispute Resolution ProjectTasks CompletedTasks Completed

• Well established, mature processWell established, mature process

• Jurisdiction helps develop compliance planJurisdiction helps develop compliance plan

• Follow-up/reassessment provisions clarifiedFollow-up/reassessment provisions clarified

• Open communication throughout processOpen communication throughout process

• Plenty of time and flexibilityPlenty of time and flexibility

• PCR Guide ratified to support DRC referralsPCR Guide ratified to support DRC referrals

Refined PCR Process

Dispute Resolution ProjectDispute Resolution ProjectTasks CompletedTasks Completed

Initial processInitial process• Ratified in 1996Ratified in 1996• Board heard disputesBoard heard disputes

RevisionsRevisions• 2004: Board reconsideration process2004: Board reconsideration process• 2005: DRC standing committee2005: DRC standing committee• 2006: Support referrals from PCR2006: Support referrals from PCR

Refined Dispute Resolution Process

Dispute Resolution ProjectDispute Resolution ProjectTasks CompletedTasks Completed

• Would have allowed PCRC to refer Would have allowed PCRC to refer matters to DRCmatters to DRC

• Failed by one vote (43 yes, 15 no)Failed by one vote (43 yes, 15 no)

Ballot 12-2006

Dispute Resolution ProjectDispute Resolution ProjectTasks CompletedTasks Completed

• Philosophical differences -- Only Philosophical differences -- Only jurisdiction should bring disputejurisdiction should bring dispute

• Experiences with IRP dispute processExperiences with IRP dispute process• Materiality concernsMateriality concerns• Desire for clarification regarding what Desire for clarification regarding what

would be taken to disputewould be taken to dispute

Why Ballot 12-2006 Failed

Dispute Resolution ProjectDispute Resolution ProjectUnfinished BusinessUnfinished Business

Ballot 2-2007

DISPUTE RESOLUTION DISPUTE RESOLUTION PROJECT UPDATE PROJECT UPDATE

July 2007July 2007

IFTA Annual Business IFTA Annual Business MeetingMeeting