Renewable Fuels in Kansas: Activity and Agency Coordination ____________________________ Presented to the Kansas Energy Council Biomass Committee January 5, 2007

Existing Ethanol Plants Abengoa Bioerergy, Colwich – 25 MGY East KS Agri-Energy, Garnett – 51 MGY E.S.E. Alcohol Inc., Leoti – 2 MGY MGP Ingredients, Atchison– 25 MGY Prairie Horizon, Phillipsburg – 40 MGY Reeve Agri-Energy, Garden City – 10 MGY U.S. Energy Partners, Russell – 45 MGY Western Plains Energy, Campus – 45 MGY ___________________________________________ TOTAL EXISTING CAPACITY-243 MGY

Ethanol Plants Under Construction Arkalon / Conestoga, Liberal – 120 MGY Bonanza Bioenergy, Garden City – 55 MGY E Caruso LLC, Goodland – 20 MGY Gateway Ethanol, Pratt– 60 MGY ___________________________________________ TOTAL UNDER CONSTRUCTION-255 MGY

Bio-Energy Coordination Team Ray Hammarlund & Corey Mohn, KDOC –Value Added Program, Community Development Block Grants Steve Wassom, KS Securities Commission –KS and out-of-state securities registration Edie Martin, Department of Revenue –Licensing, bonding, motor fuels tax, tax credits John Ramsey, KDHE –Air, water, environmental remediation, livestock waste Ken Kopp, Dept. of Agriculture – DWR –Water resource allocation Carole Jordan, Department of Agriculture –Overall agricultural impact Liz Brosius, Kansas Energy Council –Coordination and legislative issues

Kansas Department of Commerce Biofuels Investment to Date (since 2001) Agriculture Marketing Division: –Value Added Loans Feasibility studies, business plans and equity drives: $500,000 Staff Time (7 years at 80% staff time, plus numerous trips, seminars, receptions, etc): $300,000 –Business Development Division: KEIOF and Workforce Training: $162,000 Jobs and Investment Tax Credits: $3,450,000 Partnership Fund: $200,000 Staff Time (50 hours at $22.00/hour): $1,100 –Community Development Division: Community Development Block Grant—Economic Development for infrastructure including rail spurs: $2,037,400 Total Funding since 2001:$6,650,600

U.S. Ethanol Plants and Capacities by State IA(25) 1,568 MGY MN(16)501 MGY SD(13)552 MGY NE(12)589 MGY KS(8)211 MGY IL(6)814 MGY WI(6)228 MGY MO(4)155 MGY CA(4) 69 MGY MI(3)155 MGY CO(3) 85 MGY ND(3) 84 MGY KY(2) 35 MGY IN(1)102 MGY TN(1) 67 MGY NM(1) 30 MGY WV(1) 11 MGY OH(1) 4 MGY VA(1) unknown Total U.S. Capacity = 5.3 BGY Additional Capacity Under Construction = 5.2 BGY Source: American Coalition for Ethanol; Renewable Fuels Association – December 2006

Bushel Consumption* Bushel Consumption of Existing KS Plants 90.1 MBY Proposed Bushel Consumption 94.4 MBY _________________________________________________________________________________ Kansas Near-Term Bushel Consumption184.5 MBY Total U.S. Bushel Consumption1.9 BBY U.S. Proposed Bushel Consumption1.9 BBY _________________________________________________________________________________ U.S. Near-Term Bushel Consumption3.8 BBY * Assumes 2.7 gallons per bushel