Director, Safety & Training The Future of Avgas Michael Mooney V.P. & CRO Mark Willey CEO Mike France Director, Safety & Training

The Future of Avgas What we will cover today…… History of Avgas Fleet Requirements & Challenges Proposition 65 and CEH Lawsuit PAFI Road Map to Unleaded Avgas Q & A

80/87 100/130 80/87 100LL 100LL 100UL ? The History of Avgas 1960’s Aviation Gasoline Grades 80/87 100/130 1960’s .5 ml TEL/Gal 4.0 ml TEL/Gal 80/87 100LL 70’s to 90’s 2.0 ml TEL/Gal 100LL 90’s to now Future 100UL ?

Unleaded Fuel – No Easy Solution Decades of trying to find a “drop-in” solution but none found Very technically complex problem, quality control, and performance required Solution must be safe, reliable, and affordable Regulatory pressure – FAA and EPA Only one supplier of Lead worldwide Avgas is a specialty product, less than one-tenth of 1% of auto gas In 1989 32 refineries made Avgas, today only 10 (US & Canada) Economic Risk – Expensive to find solution for a relatively small market Not economically feasible to have more than one grade of Avgas

Engines – Aviation vs. Auto Lead (TEL) is the component is Avgas that establishes the Octane. Lead prevents fuel from pre-igniting under compression before spark plugs fire. This is pre-ignition is called “detonation” (“knock” in auto engines). The octane number is a measure of the fuel’s anti-knock performance. Automobile engines – 80-90% of the time the power demand is low. Aircraft engines are under a load all the time.

Aviation Fleet Fuel Requirements 70% of the fleet in numbers. 30% of the fuel consumption. Low Compression – Many certified on 80 Octane 30% of the fleet in numbers. 70% of the fuel consumption. High Compression – Certified on 100 Octane 170,000 Aircraft in US Fleet 230,000 Worldwide Fleet

Prop 65 & CEH Lawsuit 1985 Proposition 65 becomes law May 2011 CEH issues “Notice of Violation” under Prop 65 > Seeks to ban the sale of leaded Avgas in California June 2011 NATA forms Joint Defense Group (FBO’s & Fuel Distributors) June 2011 Defense Group files suit against CEH (dismissed) Oct. 2011 CEH files suit against FBO’s & Fuel Distributors Nov. 2014 CEH lawsuit settled; Terms; 1. Warning Signs & Messages 2. TEL no more than .56gr./L 3. Sell Very Low Lead (VLL) if available 4. Sell Unleaded (100UL) when available 5. Sell Mogas unless prohibited

What about Auto Gas aka Mogas? Ethanol – Not allowed in Auto Gas per FAA approved STC’s. Senate requires Ethanol to reduce CO² emissions. No refiner will extend aviation products liability insurance to auto gas. Hard to find non-ethanol gas is not distributed to aviation standards although priced similar to Avgas. Does not meet the requirement of the aircraft that use 70% of the volume. EAA and the rest of industry agree we need a solution that meets the needs of the entire fleet.

Unleaded Aviation Gasoline – Testing Octane / Performance Number Vapor Pressure Freezing Point Materials Compatibility Electrical Conductivity Emissions and Toxicity Storage Life

Unleaded Fuel – No Easy Solution Worst Case Scenarios Fuel does not meet performance requirements. Expensive engine modifications required for new unleaded fuel. De-rating engine and/or reducing payload. No high octane unleaded fuel passes testing. Fleet permanently grounded until a whole new class of large-displacement engines can be developed capable of generating 320 to 400 HP on diesel fuel or other unleaded, non-ethanol fuel.

Joint Industry/Government Partnership Piston Aviation Fuel Initiative - PAFI Joint industry-government partnership formed in 2010 to test and approve an unleaded avgas suitable for the existing fleet, develop a new ASTM (American Society for Testing and Materials) specification for refining it and address the business case for deploying it into the field. Members AOPA – Aircraft Owners & Pilots Association EAA – Experimental Aircraft Association GAMA – General Aviation Manufacturers Association NATA – National Air Transportation Association NBAA – National Business Aircraft Association API – American Petroleum Institute

Road Map to an Unleaded Avgas Future - PAFI Formed - Charter Signed by FAA. - FAA opens fuel program office. $12 mil in funding approved by Senate - FAA Solicits for New Unleaded Fuels - FAA selects 4 of the 5 candidate fuels submitted > Swift (2), Shell, and Total 2015 – Phase 1 Testing begins in Test rigs and lab (to be completed by Jan ‘16 2016 – Jan. Select fuels for Phase 2 Testing (maybe 3) 2016 – July – Selected fuels due at FAA Test Center 2017 – Phase 2 Testing begins (actual engine & flight testing) 2018 - Final Reports & FAA Certification. ASTM Certification

Unleaded Avgas Once the PAFI Technical Evaluation Committee has determined that at least one unleaded avgas candidate meets all the performance and properties requirements, ASTM will issue a “consensus standard” for the new fuel, which can be broadly produced as a commodity. This sets the requirements and characteristics that any refiner could use to develop a competing fuel.

Director, Safety &Training The Future of Avgas Questions? Michael Mooney V.P. & CRO Mark Willey CEO Mike France Director, Safety &Training