Update of Global Petroleum Based Transportation Fuel Quality Regulations Fall 2009

1. What Can We Make? “Retooling” for Renewables Transportation Fuels Regulations Update and Tutorial

4. Regulations Tutorial Overview of Current Regulatory Environment

9. Current Regulations – U.S. Gasoline

13. Current Regulations – U.S. Gasoline – Pre and Post RFG Fuel Parameter Values (national basis) Conventional Gasoline Pre RFG Regs Gasohol Oxyfuel (2.7 wt% oxygen) Phase I RFG Phase II RFG 2005 Conventional Gasoline 2005 Range2 Avg Avg Avg Avg Avg RVP3 6.9-15.1 9.7-S 8.7-S 7.2/8.1-S 6.9 S 8.3 - S (psi) 11.5-W 11.5-W 11.5-W 11.5-W 11.9 W 12.1 - W T50 (øF) 141-251 202 205 202 202 – S 181 - W 211 – S 200- W T90 (øF) 286-369 316 318 316 330 331 – S 324 - W Aromatics (vol%) 6.1-52.2 23.9 25.8 23.4 20.7 – S 19.2 - W 27.7 – S 24.7 - W Olefins (vol%) 0.4-29.9 8.7 8.5 8.2 11.9 – S 11.2 - W 12 – S 11.6 - W Benzene (vol%) 0.1-5.18 1.60 1.60 1.0 (1.3 max) 0.66 1.21 – S 1.15 - W Sulfur (ppm) 10-1170 305 313 302 (500 max) 71 – S 81 - W 106 – S 97 - W MTBE4 (vol%) 0.1-13.8 -- 15 11 (7.8-15) 7.02 – S 6.63-W 1.66 – S 1.41 - W EtOH4 (vol%) 0.1-10.4 10 7.7 5.7 (4.3-10) 3.03 - S 2.86 – W 1.75 – S 2.19 – W

23. Current Regulations – U.S. Diesel

25. Source: U. S. Environmental Protection Agency (EPA) Distillate Regulations – Regulated Categories (to date)

26. Source: U. S. Environmental Protection Agency (EPA) Diesel Regulations – On Road Fuel Performance Targets

27. Source: U. S. Environmental Protection Agency (EPA) Diesel Regulations – Off Road Fuel Performance Targets

28. “ NR” = Non Road “LM”= Locomotive/Marine Source: U. S. Environmental Protection Agency (EPA) Diesel Regulations Summary and Timeline

32. Current Regulations – U.S. The Rise of Renewable Fuels

37. Source: U.S. Environmental Protection Agency (EPA) RFS 2 – Volume Targets 2015-2023+ New Targets for “Nonconventional” Biofuels Renewable Fuel Volume Requirements for RFS2 (billion gallons) Year Cellulosic biofuel requirement Biomass-based diesel requirement Advanced biofuel requirement Total renewable fuel requirement 2008 n/a n/a n/a 9.0 2009 n/a 0.5 0.6 11.1 2010 0.1 0.65 0.95 12.95 2011 0.25 0.80 1.35 13.95 2012 0.5 1.0 2.0 15.2 2013 1.0 a 2.75 16.55 2014 1.75 a 3.75 18.15 2015 3.0 a 5.5 20.5

38. a – target not yet known; minimum 1 billion gals. b – not yet determined Source: U.S. Environmental Protection Agency (EPA) RFS 2 – Volume Targets 2008-2015 New Targets for “Nonconventional” Biofuels Renewable Fuel Volume Requirements for RFS2 (billion gallons) Year Cellulosic biofuel requirement Biomass-based diesel requirement Advanced biofuel requirement Total renewable fuel requirement 2016 4.25 a 7.25 22.25 2017 5.5 a 9.0 24.0 2018 7.0 a 11.0 26.0 2019 8.5 a 13.0 28.0 2020 10.5 a 15.0 30.0 2021 13.5 a 18.0 33.0 2022 16.0 a 21.0 36.0 2023 + b b b b

40. Source: NPRA Summary of Regulatory Impacts

41. Current Regulations The Rest of the World Euro V and Asia

43. European Fuels – Gasoline/Petrol “Euro” Standards

44. European Fuels – Diesel “Euro” Standards

48. Vapor pressure controls imposed during summer season Mandatory detergent additives Future reductions in sulfur and toxics Source: Chinese Ministry of Environmental Protection Presentation Asia China - Gasoline

49. Currently not compliant with U.S. and Euro V Sulfur standards for on road fuel Source: Chinese Ministry of Environmental Protection Presentation Asia China - Diesel

52. On the Horizon Marine Bunker Fuels Changes MARPOL VI

60. Summary and Outlook “What Can We Make?” Scenario for the Future