1 DRAFT – DO NOT CITE OR QUOTE For NPC Fuels Study Discussion Only 09/08/2010 v47 National Petroleum Council Future Transportation Fuels Study GHG Team Update September 20-21, 2010

2 DRAFT – DO NOT CITE OR QUOTE For NPC Fuels Study Discussion Only 09/08/2010 v47 GHG Team Structure Core Team Heidi Pervin – Chevron Elaine Horn – Accenture Bob Bailes – ExxonMobil Karen Hamberg - Westport Mike Leister – Marathon Dave Rogers - Chevron Core Team Heidi Pervin – Chevron Elaine Horn – Accenture Bob Bailes – ExxonMobil Karen Hamberg - Westport Mike Leister – Marathon Dave Rogers - Chevron GHG Reference Case Elaine Horn – Accenture Paul Holtberg – EIA Dave Rogers - Chevron GHG Reference Case Elaine Horn – Accenture Paul Holtberg – EIA Dave Rogers - Chevron Life Cycle Analysis Michael Wang – Argonne Paul Argyropoulos – EPA TBN – CARB Mike Leister – Marathon Elaine Horn - Accenture TBN – Academia TBN – NPC organization Life Cycle Analysis Michael Wang – Argonne Paul Argyropoulos – EPA TBN – CARB Mike Leister – Marathon Elaine Horn - Accenture TBN – Academia TBN – NPC organization Carbon Capture & Storage TBN – NRDC TBN – Academia TBN – NPC organization Carbon Capture & Storage TBN – NRDC TBN – Academia TBN – NPC organization Criteria Air Pollutants, Land and Water Use Guidance (recent scope additions) GHG team is connected into various Fuels Task Groups (except hydrogen) and Resources’ End-User and Carbon team Challenges – Core and SME team member availability. Work needs to be front-end loaded to effectively support FTF teams

3 DRAFT – DO NOT CITE OR QUOTE For NPC Fuels Study Discussion Only 09/08/2010 v47 Environmental Scope Issues NPC Guiding Principles: Assess policy through three lenses –Environmental –Economic –Security Path Forward: GHG team to include water, land (direct & indirect) use and criteria pollutants within scope GHG team will assess how water/land use and criteria pollutants change relative to the 2005 base case and assess materiality of these changes for each fuel team. GHG team will provide more detailed guidance for those environmental scope elements which may have material changes across two or more fuels teams. Notes: 1)Criteria pollutants include SOx, NOx, PM, VOC and CO Intersection of NPC Teams & Environmental Scope Elements FTF Sub Groups WaterLand use Criteria PollutantsGHG - LCA BiofuelsXXXX HydrocarbonsX x (oil sands) XX Natural GasXXX HydrogenX XX ElectricXXX Engines XX Fuel Characteristics X Resource Teams X XX

4 DRAFT – DO NOT CITE OR QUOTE For NPC Fuels Study Discussion Only 09/08/2010 v47 GHG Team Integration Issues – Fuels & Resource Studies Known Issues: Consistent treatment of criteria air pollutants (across Fuels and Resources) Consistent treatment of GHG life cycle analysis (across Fuels and Resources) Consistent treatment of Carbon Capture and Storage, e.g., unit cost ranges for different applications, learning curves, application of CCS, etc. (across Fuels and Resources) Possible Forward-Looking Issues: Consistent treatment of social GHG costs (easier) and societal benefits of GHG reductions (harder) (across Fuels and Resources) Consistent treatment of market-driven carbon costs under C&T policy scenarios throughout the value chain (Fuels and Resources)

5 DRAFT – DO NOT CITE OR QUOTE For NPC Fuels Study Discussion Only 09/08/2010 v47 Activities & Deliverables Current Activities: Core team assembled, held initial kick-off meeting Sept 15. On-boarding several core team members Additional scope elements (water, land and criteria air pollutants) recently added Defining team work scope, integration/standardization “touch points” and project plans Job #1 (complete): 2005 GHG baseline and GHG emissions reference case integrated into draft Reference Case product Ramping up to resource other scope items and define work paths Key Deliverables: Templates (e.g., GHG life cycle analysis coefficient ranges into GREET/VISION) Guidance documents to fuels teams on various scope elements (e.g., carbon capture & storage, criteria air pollutants, etc.) that enable standardization and harmonization across fuels teams and with the Resources study GHG life cycle analysis report for NPC report appendix