Petroleum Quality Institute of America TM Presented to: National Conference on Weights and Measures, Board of Directors Albuquerque, New Mexico January 21, 2014 Working Together to Protect Consumers!

Petroleum Quality Institute of America TM Agenda  Introductions  Current State of Quality in the Lubricants Industry  Overview of PQIA  PQIA’s activities with W&Ms  Explore how PQIA’s activities can be expanded to assist other states  Extending PQIA’s collaborative efforts with W&M to include ATFs 2

A mechanism for detecting 'cheaters' must exist, or there will be little reason to play by the rules, and end users will pay the price. Petroleum Quality Institute of America TM  Consumers suffer - Performance may be compromised, and damage done to engines and transmissions  Playing field not level - Doing it “right” comes at a cost 3  Poor quality lubricants abound in the market -Self policing efforts are not effectively addressing the problem

Petroleum Quality Institute of America TM BUT… As Bob Dylan said… “The Times They Are A-Changin” ”  API is getting more active  NCWM made significant and very meaningful changes to HB 130, also more robust monitoring and testing, and the states carry a badge  North Carolina, Michigan, Missouri, California, and other states are making a difference! - Stop-Use/Sale and Removal Orders And… 4

Petroleum Quality Institute of America TM The Petroleum Quality Institute of America is shining bright lights on both the good and bad lubricants in the market. 5

What makes PQIA different?  PQIA serves the lubricant consumer rather than oil company members  All data from testing of branded lubricants are made public - We identify the brands tested and the results of those tests  PQIA’s test data on brands is easily accessible to anyone on its website Transparency and Accessibility The Petroleum Quality Institute of America’s mission is not to do what other fine organizations already do. Instead, it is to do what they don’t do, and to do it with an unwavering eye on the interests of the consumer. Petroleum Quality Institute of America TM 6

The Petroleum Quality Institute of America Advisory Board comprises leading professionals with prominence in a broad range of fields related to the lubricants industry. The PQIA Advisory Board provides guidance, advice, recommendations and counsel to PQIA’s management to ensure a fair, equitable, rigorous, transparent and unbiased approach in the manner in which PQIA carries out its mission. In addition, the AB serves as an advocate of PQIA and its purpose and mission to lubricant industry stakeholders. PQIA Board Members agree and comply to the PQIA Code of Ethical Business Conduct. Industry Support and Guidance Petroleum Quality Institute of America TM 7

Petroleum Quality Institute of America TM PQIA Supporters 8

Petroleum Quality Institute of America TM The PQIA process; simple, yet effective Collect Samples Test at Independent Laboratories Assess and Report Results on PQIA Website Make it Known 9

Petroleum Quality Institute of America TM PQIA is Making a Difference Making news/getting the word out Educating Consumers Lobbying for Change Making it clear that PQIA is watching… Names the of Bad Actors 10

Petroleum Quality Institute of America TM Making it known and keeping it simple. 11

Petroleum Quality Institute of America TM PQIA – Cooperating with W&M The Petroleum Quality Institute of America is currently working with a number of states to help protect consumers from potentially harmful motor oils and transmission fluids In an iterative process with several states over the past two years, PQIA has developed a model that works, and one that can be expanded to assist other states in protecting the interests of its consumers. 12

Petroleum Quality Institute of America TM PQIA – The Working Model PQIA brings it experience and expertise to assess the product’s compliance with claimed specifications  PQIA provides the state with a comprehensive report, including a “State of the State” summary of all samples tested  Review includes statistics, and geographic analysis of sample collection points, “hot spots” of concern and others. 13 Installers

Petroleum Quality Institute of America TM Background and support material Sample Specific Analyses Summary 14

Petroleum Quality Institute of America TM  Establishing programs  Training  Interpretation  Resampling  Additional tests  Others  Expert witness 15 PQIA – The Working Model

Petroleum Quality Institute of America TM Weights and Measures & PQIA Working together To Protect Consumers 16  Explore how PQIA’s activities can be expanded to assist other states  Extending our collaborative efforts to include ATFs and antifreeze/coolants