1. Renewable Fuels: Taking the Punch and Fighting Back Iowa Renewable Fuels Summit January 28, 2014

2. 2 Iowa’s Ethanol Industry 42 operating ethanol plants with capacity of 3.8 billion gallons  3 cellulosic ethanol plants under construction  1 cellulosic project in planning stages 1.35 billion bushels of Iowa corn  Converted to ethanol and high-protein animal feed ~28% of nation’s ethanol production

3. High Protein Livestock Feed 3

4. 4 Iowa’s Biodiesel Industry 12 biodiesel plants with capacity of nearly 315 million gallons 10 operated in 2012, producing 230 million gallons  ~13.5% of US biodiesel production Low Carbon feedstock use is up.

5. Impact of Renewable Fuels in Iowa 5 Purchases (Mil 2013$) GDP (Mil 2013$) Household Earnings (Mil 2013$) Employment (Jobs) Ethanol*$10,620.5$5,038.4$3,738.055,161 Biodiesel$884.1$519.2$313.27,073 Total$11,504.6$5,557.6$4,051.262,234

6. State of the Iowa Renewable Fuels Industry Taking the Punch and Fighting Back 6

7. 7 Punch #1: Mother Nature Wet spring/Dry Summer… …Largest US and world corn harvest on record

8. 8 Punch #2: Don’t Burn our Food USDA projects nearly 2 billion bushels of corn just sitting in storage  There is NO competition between food and fuel  There is a corn surplus!

9. 9 Punch #3: AP -RFS is ruining land Renewable fuels lead to higher corn prices which cause farmers to ruin the environment…

10. 10

11. 11 Farmers are Practicing the Best Land Stewardship Ever It was the drought, stupid.  Price of corn was $4.34 the day Pres. Bush signed RFS2 into law…and the price of corn was $4.34 the day the AP released their smear piece. Wayne County farmers planted 88,000 acres of corn in 1985 (before the ethanol boom), and only planted 58,500 acres of corn in 2012 Good farmers are good farmers.

12. 12

13. 13 Punch #4: The Blend Wall Consumers don’t want blends above E10 and retailer don’t want to sell them.

14. 14 Consumer Choose Higher Blends When Given the Chance Iowa has:  14 registered E15 locations  72 blender pumps locations  186 E85 pump locations  And more on the way (Murphy USA) Retailer Charlie Good in Nevada, Iowa: “I’m a little, independent guy. I’ve got two of the biggest convenience store companies in the United States (nearby), and I’m kicking their butt. But I’m doing that because I’m offering things they don’t offer.”

15. EPA: Tear Down This Wall!!! 15

16. 16 Punch #5: Refiners Will Stop Refining API: The RFS will force us to stop supplying fuel for the US market.

17. 17 EPA: Call this Bluff!!! Petroleum industry has track record of predicting bad things from competitors…  Lead  MTBE  CA and NY Markets  E15 …and being wrong. ISU’s Babcock: “[API’s] strategy is not feasible unless obligated parties formed an illegal cartel to reduce sales to boost prices.”

18. 18 Punch #6: EPA – 2014 RFS Should be Lowered White House OMB: “No harm. No foul.”

19. 19 EPA: Can’t Increase RFS until more higher blend infrastructure Turns RFS rationale on its head.

20. There is harm. 20

21. 21 Harm: Biodiesel Plants Idled – Jobs in Question Could shut down half of biodiesel production. Based on outdated 2011 data. Biodiesel industry had proven it can produce 1.7 billion gallons or more.

22. 22

23. 23 There is harm. Cellulosic ethanol progress would stop.

24. 24 There is harm. Corn prices go back below cost of production. Farm income take huge hit. No Farm Bill safety net. Land values plummet. Farm Crisis

25. 25

26. What will suck up the corn surplus? 26

27. 27

28. Federal Petroleum Mandate 28

29. Level the Playing Field 29

30. 30 Web-Site & Contact Information www.IowaRFA.org 515-252-6249 mshaw@IowaRFA.org 5505 NW 88th Street Phone (515) 252-6249 Johnston, IA USA Fax (515) 225-0781 50131-2948 E-mail info@iowarfa.org