The Rapid Growth of Biodiesel in Illinois

Pre-2003 in Illinois Ethanol Friendly Checkoff funded biodiesel R & D B20 Alternative Fuel Status Iraq – Energy Security

PA Signed 6/11/03

How It Works at 10% DieselBiodiesel (B2) $2.45 Ret. Cost f/Diesel 2.40 Biodiesel ($3.30) Federal Tax Subtotal % IL Sales Tx 5% IL Motor Fuels Tx.22 $3. 08 Total $3.07

How It Works 11% Diesel Biodiesel (B11) $2.45 Ret. Cost for Diesel $2.18 Biodiesel ($3.30) Federal Tax Subtotal % IL Sales Tx 0%.0.22 IL Motor Fuels Tx.22 $3.08 Total $3.00

Estimated 2006 Usage in Illinois 1.5 billion gallon diesel market Goal: Capture 10% market for biodiesel (150 million gallons) In 2006, estimated usage of 63 million gallons in Illinois 25% of 250 mg produced in U.S.

IL 63

95th General Assembly SB649 – Senator John Sullivan Calls for labeling of pumps dispensing biodiesel at blends 6-20% by July 1, 2008 Signed by Governor August 28, 2007

What s Ahead Challenges Terminal Infrastructure Building production capacity Quality of fuel Naysayers Harder to market than gasoline Feedstock sourcing ULSD

What s Ahead Opportunities Illinois a transportation hub Ethanol has paved the way Need for energy security widely acknowledge Positive energy balance Safe and easy to implement Replaces lubricity in ULSD

Thank You! Sources of Information – (Illinois Soybean Association) – (National Biodiesel Board) Rebecca A. Richardson, CAE Director of Operations Mark Albertson, MBA Director of Marketing