1 Burgess Energy Conservation Summit Overview of Alternative Fuel Technologies PRESENTATION BY Clinton Blair Senior Director of Government Affairs Alliance of Automobile Manufacturers July 14, 2007

2 Alliance Members Are Driving Innovation  77 Percent of All U.S. Car and Light Truck Sales  Leading Advocacy Group for the Auto Industry  More Than 238 Million Cars & Light Trucks on U.S. Roads

3 Driving Innovation  Automakers Comprised 3 out of 4 of the World’s Top R&D Investors in 2005  5 of the Largest Automakers Spent $33 Billion in R&D in 2005

4 The Automobile Industry Creates Jobs  985,300 in the Fuel Industry  798,800 in the Automobile Dealership Industry  289,000 in Road Construction

5 Driving Sales of Alternative Fuel Autos  60 models of AFAs on sale now, up from 12 models in 2000  1.5 million AFAs sold in 2006 alone  10.5 million on US roads

6 Alternative Fuel Autos Are Everywhere UNDER 50,000 Alternative Fuel Autos 50, ,000 Alternative Fuel Autos 100, ,000 Alternative Fuel Autos Over 150,000 Alternative Fuel Autos

7 What We Need to Move Forward More Fuels  170,000 U.S. gas stations, only 1,200 carry E85  Progress is being made  You can drive from Chicago to Kansas City and back — 1700 miles — fueled solely by E85

8 Clean Diesel Lower Sulfur Content & High Mileage Compared to their gasoline counterparts, the new generation of clean diesel vehicles offer much greater fuel economy while delivering better performance. Around the world, consumers are favoring advanced diesel technology. Clean diesels power 40 percent of Europe’s new light duty motor vehicles. Today’s clean diesel vehicles run more cleanly, thanks to new high- pressure fuel injection, combustion and exhaust after-treatment technologies. A key factor in determining the success of these aftertreatment technologies was EPA’s 2001 decision to require dramatic sulfur reductions in diesel fuel. On average, clean diesel vehicles achieve percent better fuel economy than their gasoline-powered counterparts.

9 Diesels/Biodiesel on Sale Today: 13 Models Chevrolet ExpressMercedes-Benz E320 Bluetec Dodge RamMercedes-Benz R320 CDI Ford E-SeriesMercedes-Benz ML320 CDI Ford F-Series Super DutyMercedes-Benz GL320 CDI GMC SavannaVolkswagen Touareg TDI GMC Sierra 2500 HD GMC Silverado 2500 HD Jeep Grand Cherokee

10 Ethanol (E-85) Homegrown & Renewable  Ethanol derived from corn, sugar cane – cellulosic on the way  E-85 is 85% ethanol and 15% gasoline  All vehicles on the road today can use a blend of up to 10% ethanol with gasoline without voiding warranties.  Of the 170,000 gas stations in America, about 1,200 sell E-85  Ethanol is renewable but contains less energy than gasoline  Because ethanol is more corrosive than gasoline, automakers need to use special materials for the gas line, gas tank, pumps, and injectors.

11 Ethanol (E-85) Vehicles on Sale: 29 Models Buick Terraza Ford Crown Victoria Chevrolet Avalanche Ford F-150 Chevrolet Express GMC Savana Chevrolet Impala GMC Sierra Chevrolet Monte Carlo GMC Yukon Chevrolet Silverado GMC Yukon XL Chevrolet Suburban Jeep Grand Cherokee Chevrolet TahoeJeep Commander Chevrolet UplanderLincoln Town Car Chrysler AspenMercedes-Benz C-Class Chrysler SebringMercury Grand Marquis Chrysler Town & CountryNissan Armada Dodge Caravan/Grand CaravanNissan Titan Dodge Durango Dodge Dakota Dodge Ram

12 Hybrid Engines Advanced Batteries & Higher Mileage Hybrid-electric vehicles refer to powertrains that use a battery- powered electric motor, a gasoline internal combustion engine, and a concept known as regenerative braking to power the vehicle Regenerative braking systems, which recover energy that is otherwise wasted, allow hybrids to be especially fuel-efficient in stop-and-go city driving Utilizing these hybrid technologies, fuel economy can be improved by up to 25 percent over conventional automobiles At the moment, hybrids are more expensive than traditional gasoline engines Automakers working hard to continue battery development and advancements

13 Hybrid Vehicles On Sale Today: 16 Models Chevrolet Silverado HybridMercury Mariner Hybrid Dodge Ram HybridNissan Altima Hybrid Ford Escape HybridSaturn Aura Green Line Hybrid GMC Sierra HybridSaturn Vue Green Line Hybrid Honda Civic HybridToyota Camry Hybrid Honda Insight HybridToyota Highlander Hybrid Lexus GS450h HybridToyota Prius Lexus LS 600hL Hybrid Lexus RX 400h Hybrid

14 Looking Forward… New Technologies & More Models Coming to the Market  More Hybrids  More Clean Diesels  More E-85 vehicles  Hydrogen ICE  Fuel Cells  Plug-In Hybrids

15 Alliance Members, Part of the Solution

16 Alliance Members, Part of the Solution

17 We Must Look Forward… Beyond CAFE  Must Provide Consumers With the Cars They Want While Reducing Oil Consumption  Encourage Even More Alternative Fuel Choices  Enhance Our Alternative Fuels Infrastructure and Empower the R&D Community  Stimulate Economic Investments in Fuels and Technologies  Involve All Levels of Government  Motivate Consumers to Conserve Fuel and Purchase Fuel-Efficient Autos

8/17/2015