CSSJR 46(STA): Requesting the United States Congress to provide a waiver for nontaxable diesel fuel sold in Alaska from the requirement that it contain a dye additive.

00CS FOR SENATE JOINT RESOLUTION NO. 46(STA) 01 Requesting the United States Congress to provide a waiver for nontaxable diesel 02 fuel sold in Alaska from the requirement that it contain a dye additive. 03 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 WHEREAS the Omnibus Budget Reconciliation Act of 1993 changed the point of 05 collection of the federal highway tax and, effective January 1, 1994, requires dyeing of diesel 06 fuel that is exempt from the federal diesel fuel tax; and 07 WHEREAS a regulation of the Internal Revenue Service requires dye to be added to 08 nontaxable diesel fuel in the state; and 09 WHEREAS the use of diesel fuel for taxable purposes in Alaska is substantially below 10 that used in the rest of the United States; the State of Alaska has determined that less than five 11 percent of all diesel fuel sold in the state is sold for taxable purposes for use in on-road 12 vehicles and recreational boats, which means that 95 percent of the diesel fuel in Alaska will 13 have to be dyed; and 14 WHEREAS compliance with the requirement imposes a special hardship in rural

01 Alaska in that the ability to meet the requirement in some rural areas is threatened due to the 02 logistical limitations of available tankage and controls; and 03 WHEREAS in a state in which there is a high per capita usage of private aircraft, the 04 dye requirement poses a particular problem for private aircraft users in that the dyed diesel 05 is very similar in color to one or more fuels, which could lead to inadvertent mixing or 06 substitution of fuels and increases the probability of improper fuel handling and potential for 07 accidents, serious bodily injury, or death; and 08 WHEREAS the Federal Aviation Administration is very concerned about these serious 09 public health issues and associated safety risks; and 10 WHEREAS the penalties for failure to comply with this legislation can be very high; 11 and 12 WHEREAS there is no indication of any tax fraud in the state related to the improper 13 use of nontaxable fuel for taxable purposes; 14 BE IT RESOLVED that the Alaska State Legislature urges the United States Congress 15 to take appropriate action to assure the elimination of the safety threats imposed by the current 16 requirement that nontaxable diesel fuel offered for sale in Alaska be dyed by providing a 17 waiver of the requirement. 18 COPIES of this resolution shall be sent to the Honorable Al Gore, Jr., Vice-President 19 of the United States and President of the U.S. Senate; the Honorable Robert C. Byrd, President 20 Pro Tempore of the U.S. Senate; the Honorable Thomas S. Foley, Speaker of the U.S. House 21 of Representatives; the Honorable Lloyd Bentsen, Secretary of Treasury; and to the Honorable 22 Ted Stevens and the Honorable Frank Murkowski, U.S. Senators, and the Honorable Don 23 Young, U.S. Representative, members of the Alaska delegation in Congress.