IRP History - Federal Highway Administration

IRP History - Federal Highway Administration

IRP International Registration Plan Tim Adams, Director IRP Motor Carrier Services International Registration Plan What is IRP How IRP Began How IRP Works Who must register under IRP Why is IRP important IRP, Inc. Partnerships/relationships with other organizations IRP History

What is IRP? The International Registration Plan (IRP) is an agreement providing registration reciprocity among the States of the United States, the District of Columbia and Provinces of Canada providing for payment of license fees on the basis of fleet distance operated in the various jurisdictions. A unique feature of the IRP is that even though fees are paid to multiple jurisdictions through the base jurisdiction, only one license plate and registration cab card is required for each vehicle. IRP History How it began Prior to IRP, multiple reciprocity agreements existed to cover inter-jurisdictional movement of commercial motor vehicles (CMV) between jurisdictions. In 1968 the

American Association of Motor Vehicle Administrators (AAMVA) formed a subcommittee to develop a plan that would incorporate all theories of reciprocity and attract all jurisdictions of the U.S. and Canada into one uniform agreement. The subcommittee made up of jurisdiction administrators and industry representatives set out to draft what has become known as the IRP Plan. IRP History How it began The major objective of the subcommittee was to come up with an agreement that would be fair to the motor transportation industry and provide a fair share of the revenue to all jurisdictions. In September 1972 AAMVA went on record as endorsing the

concept of proportional distribution of registration fees for inter-jurisdictional vehicles. An ad hoc committee for National Proportional Registration was formed and assigned the task of developing the proposed plan into an agreement acceptable to both industry and the jurisdictions. In the final draft of the plan, the name was changed to the International Registration Plan. IRP History In 1973 nine signatory jurisdictions made IRP a reality Minnesota Oregon Nebraska Utah Colorado Missouri

Kentucky Tennessee Texas 1 IRP History In July 1974 Alberta became the first Canadian Province to join the IRP. Since the original jurisdictions joined in 1973, 50 additional jurisdictions have joined the IRP. IRP History In 1991 Intermodal Surface Transportation Efficiency Act of 1991 Required all states to become members of IRP. In 1994 IRP, Inc created as official repository

IRP Membership Today BC NF AB SK MT ID NV PEI NS NB ON ME WA

OR QC MB UT AZ WY MN ND CO NM WI MI NE KS

OK TX NH NY SD IA VT IL IN PA OH WV KY

MO TN AR VA NC SC MS AL GA LA MA RI FL CT DE MD

NJ Fundamental Principle The fundamental principle of the Plan is to promote and encourage the fullest possible use of the highway system by authorizing apportioned registration of Fleets of Apportionable Vehicles and the recognition by each Member Jurisdiction of the registration of Vehicles apportioned by other Member Jurisdictions, thus contributing to the economic and social development and growth of the Member Jurisdictions. -orFREEDOM OF VEHICLE MOVEMENT! Member Jurisdiction Responsibilities Administrative: Basic concepts:

Provide base license plate (should display-apportion, APP or PRP) Single registration cab card; Inter- and intra-state operations Maintain uniformity Calculate and collect all IRP fees for basejurisdiction carriers. Disburse fees to member jurisdictions within 30-days of transmittal period Notify the IRP Repository of any proposed changes regarding IRP apportion registration Assist member jurisdiction in connection with applications and fee How IRP Works

Registration fees are calculated for each jurisdiction the registrant operates into or through and collected by the base jurisdiction. Fees are based on percentage of distance operated in each jurisdiction as reported by the registrant annually. The registration fees are distributed on a monthly basis between the jurisdictions. Each apportionable vehicle of the registrants fleet is issued one license plate and one IRP cab card indicating the jurisdictions the registrant is registered for and the weight for which registration fees have been paid. Sample Fee Calculation Jurisdiction

Distance Percentage Rate Fee A (Base Jurisdiction) 14,000 52.829 $1,500.00 $792.44 B 2,500

9.434 $1,250.00 $117.93 C 5,000 18.868 $900.00 $169.81 D 3,500 13.208

$1,800.00 $237.74 E 1,500 5.661 $1,525.00 $86.33 26,500 100 % Total $1,404.25 Apportionable Vehicle

Vehicles that must register under the IRP are defined as apportionable vehicles. Apportionable vehicles are defined as: A power unit having two axles and a gross vehicle weight or registered gross vehicle weight in excess of 26,000 pounds or 11,793.401 kilograms; or A power unit having three or more axles regardless of weight; or A vehicle used in combination when the weight of such combination exceeds 26,000 pounds or 11,793.401 kilograms gross vehicle weight.

Trucks and truck tractors and combinations of vehicles having a gross weight of 26,000 pounds or 11,793.401 kilograms or less and buses used in the transportation of charter parties may be IRP registered at the option of the registrant. Sample IRP Plate 15 Sample IRP Cab Card Why is IRP Important? Prior to the IRP, multiple registration reciprocity agreements existed for the inter-jurisdictional movement of commercial motor vehicles but few if any provided reciprocity for intra-jurisdictional operations. This meant if a motor carrier had intra-jurisdictional operations in other jurisdictions, they were forced to dual plate per purchase temporary trip permits for their vehicles in order to be properly registered to operate.

Prior to IRP for inter-jurisdictional operations, only the base jurisdiction received the revenue from the registration fees even though the fleet vehicles were likely operating in multiple jurisdictions. Under IRP, each jurisdiction that the motor carrier operates into shares in the revenue based on the operations of the motor carrier. In other words, the jurisdiction is getting a fair share based on the operations on the highways within their jurisdiction. Why is IRP Important? Freedom of Movement IRP allows the motor carrier industry the freedom of movement and operations, both inter & intra

jurisdictional, with only their base registration plate and cab card. Ease of Registration Process Registrants deal with their base jurisdiction, paying all registration fees through one source Why is IRP Important? Financial Impact of IRP Registration fees from IRP represents over $2 billion dollars annually to jurisdictional highway funds contributing to funding for highway infrastructure projects and highway safety initiatives These fees are generated from the registration of

over 2 million commercial motor vehicles registered through the 59 IRP member jurisdictions Benefits For Jurisdictions: Fair share of revenue Increased use of highways Supersedes other agreements For Registrants: One Stop process Inter- and intra-jurisdictional travel IRP Brought Uniformity IRP has provided a model that many other commercial motor vehicle programs have followed over the past several years. The uniformity, consistency of processes, overall efficiency and effectiveness seen in the IRP process has proven beneficial to other areas.

For example, the International Fuel Tax Agreement (IFTA) is similar to IRP in that it took the cumbersome process of quarterly fuel tax filing with each jurisdiction that a motor carrier operated into and adopted a process for filing quarterly fuel taxes for all jurisdictions through the motor carriers base jurisdiction. IRP Brought Uniformity The IFTA program improved not only the fuel tax reporting, it also changed the fuel tax licensing process by allowing for the licensing in the base jurisdiction qualifying the vehicles for all jurisdictions. Each jurisdiction issues IFTA decals for each vehicle that is displayed on the side of the vehicle to indicate that the vehicle has proper fuel tax authority. Other programs have been adopted over the years and

used similar processes to allow the motor carriers the improved flexibility and efficiency of dealing with their base jurisdiction to qualify their vehicles instead of having to deal with multiple agencies to qualify. IRP, Inc. IRP, Inc. serves as the repository for IRP supporting the many functions of the Agreement including various committees and services. The governance of IRP, Inc. is provided by a Board of Directors which is made up of IRP Administrators from the 4 IRP regions across the U.S. and Canada. IRP, Inc. Mission Statement To serve as the repository of the International Registration Plan, improve Plan compliance, and serve as a catalyst for positive, effective change with respect to commercial motor vehicles

issues. IRP, Inc. IRP committees include the: Audit Committee Dispute Resolution Committee Peer Review Committee Plan Procedures and Education Committee

International Committee Industry Advisory Committee And several topic specific task forces and working groups including: Compliance Audit Working Group Full Reciprocity Plan Task Force Heavy Vehicle Use Tax (HVUT) Task Force

Credentials Data and Enforcement Access (CDEA) Task Force IRP, Inc. IRP Clearinghouse A major product provided by IRP is the IRP Clearinghouse which provides an electronic means for jurisdictions to share and exchange important registrant data as required by the Plan and exchange registration fees electronically. The Clearinghouse provides a process for netting of IRP fees and timely distribution between member jurisdictions, meaning the jurisdictions get their fees more timely, electronically requiring less processing time and storage requirements. IRP, Inc.

IRP Relationships and Partnerships IRP works closely with other motor carrier related organizations to improve and enhance processes where possible. IRP works closely with the International Fuel Tax Association (IFTA) to host an annual joint audit workshop, as well as many other projects, which is very beneficial to both the IRP and IFTA membership as well as the motor carrier industry. IRP, Inc. IRP Relationships and Partnerships IRP works with many other organizations including but not limited to:

FHWA FMCSA CMV Safety Belt Partnership CVISN & PRISM Projects CMV Highway Safety Award Program American Trucking Association (ATA)

Commercial Vehicle Safety Alliance (CVSA) American Association of Motor Vehicle Administrators Etc. IRP, Inc. For more information about IRP, visit the IRP, Inc. website at www.irponline.org or contact me at: Tim Adams, Director IRP Motor Carrier Services 4301 Wilson Blvd., Suite 400 Arlington, VA 22203 or 240 Hensley Road Eminence, KY 40019 Phone: (502) 845-0398

Cell: (502) 706-0196 Email: [email protected] IRP, Inc. Thank you!

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