1. WGA TRANSPORTATION FUELS FOR THE FUTURE INITIATIVE Biodiesel & Renewable Diesel Report Summary Richard Nelson and Ed Sughrue, Team Leads Transportation Fuels for the Future Workshop Denver, CO October 10-12, 2007

2. Fuel Potential in the West  Point 1 - Major oilseed crops directly applicable to production within the WGA region include soybeans, sunflowers, canola, cotton, and peanuts and each of these has been produced to some extent in the past within this region.  Point 2 – traditional oilseed feedstocks (soy, canola, sunflower) will be limited – possibly tallows/greases as well.  Point 3 – non-traditional feedstocks (camelina, castor, etc.) may provide potential boosts in production, but development is 5-10 years out.

3. Unique Challenges  Challenge 1 – feedstock production and availability of feedstocks to compete with petroleum and food markets.  Challenge 2 – water and soil quality (e.g., sustainability) concerns with potential increased production { RFS current vs. RFS future/proposed }.  Challenge 3 – complete dynamic models incorporating feedstock availability, cost, transportation, storage logistics, conversion technologies, and market information.

4. Priority Recommendations  Continue the “blenders” tax credit.  Continue research on “big splash” and “sustainable production” items such as algae and land use to see if they are for real, by when, and to what extent (+/-).  Promote strong federal enforcement of fuel quality and labeling for biodiesel.  State agencies need education and funding to ensure adequate fuel quality in the petroleum distribution network.

5. Key Actionable Recommendations  Investigate the ‘sustainability’ of feedstocks (field/plant to end- use) for use as diesel substitutes.  Keeping tax incentives for biodiesel and renewable diesel is one of the fastest ways to ensure infrastructure and growth of the industry. These tax incentives ensure survival in the near to mid term timelines (1-5 years) of biodiesel refineries.  Encourage USDA to make long-term low interest loans to infrastructure, refinery, oil mill, and/or production agriculture directly involved in the biodiesel industry. { Contingent upon a number of other factors }.  Promote strong federal enforcement of fuel quality and labeling for biodiesel.