Virginia-Maryland-DC E85 Objective: 12 new public E85 pumps – Where: I-95 from Maryland to North Carolina border I-64 from Charlottesville to Virginia Beach Near federal and state E85-capable fleets – When: By September 30, 2008 – How: Define and develop E85 supply chain Partnerships of ethanol producers, fuel distributors/retailers, vehicle dealers, owners of fleet Flex Fuel Vehicles (FFV) General Motors Corporation is key partner Grant money to help defray capital costs and risk

Grants and tax credits Up to $20,000 in grants available per E85 hose 30 % federal tax credit Grant money, tax incentives, GM marketing support and government fleet dedication can reduce capital cost and lower investment risk, especially when: – An existing tank can be converted to E85 – An additional tank can be added to a new build – A large FFV fleet will agree to fuel at the facility

2-year project cost $767,000 total project $284,000 federal portion (37%) – One of 13 competitive DOE awards $483,000 match (63%) – Sources: Virginia, Maryland, DC, private

First public E85 station in DC Georgetown Chevron dedicated June 28 Mid-Atlantic Petroleum owns station, promises more VeraSun Energy and General Motors were the key project movers Energy Secretary Samuel Bodman and GM VP Elizabeth Lowery

Third largest ethanol producer Verasun Energy wants a larger East Coast presence Verasun plans to build E85 blend terminal in VA Terminal is missing piece of infrastructure puzzle Ethanol plant also is needed to complete supply chain to East Coast Mid-Atlantic area Verasun founded in Brookings SD sells E85 under the VE85 brand in 9 states, including VA and PA, and DC

Navy Exchange model in Virginia Navy Exchange public-private venture will pilot in Virginia Could make E85 and other alternative fuels available to public At conventional convenience store-like locations

E85 now at DSCR Defense Supply Center in Richmond offers limited public access to E85

E85 station locator brochure Back of brochure lists public and private E85 pumps Custom cover for: – GM dealers – GSA fleet FFVs – Virginia fleet FFVs

Ethanol Production Currently 3 companies developing projects in VA. – 220 mgy corn-based (in 2 phases) – 50 mgy hull-less barley based – Speculative plant site being developed

Speculative Site Site is co-located with a large landfill that has deepwater barge access. Plans are to create an energy park modeled after an industrial park. Initial phase will install rail infrastructure and municipal solid waste-to-energy equipment. Btu’s from waste-to-energy process will be used to generate renewable electricity for co-located utility partner with excess btu’s offered to park tenants.

VA Production Advantages Proximity to markets Significant university level research in next generation processes Transportation infrastructure Available and affordable process energy (cheap btu’s)

Other The soon to be released Ten-Year Comprehensive Virginia Energy Plan places a priority on alternative fuels. Ethanol production/use goals are included. One short-term Plan recommendation is to eliminate Virginia’s dated label laws. There is evidence that retailers in certain conventional gas markets would sell RFG with E10.