1. Ethanol Plants What affect are they having on our existing infrastructure? Ethanol Plants What affect are they having on our existing infrastructure?

2. Ethanol in the US today Currently the Ethanol Producers of North America show the following information: There are 139 Ethanol plants in production today There are 11 plants non-producing There are 62 under construction 2- are expanding capacity

3. Ethanol requirements under 2007 Energy Bill Total current capacity = 13.5 bgy Energy bill signed into law on December 19, 2007 calls for the blending of 36 bgy by 2022 Means deficit of 22.5 bgy New growth expected to be in cellulosic technology, not corn

4. Ethanol Plant location map

5. What determines plant location? Railroad access( unit train delivery) Feed stock availability (year round) Outlet for distiller’s grain/wet cake (If using earlier corn process technology) Optimal ethanol market entry (Either unit train, or ready truck competitive delivery.)

6. What does a plant require?

7. Railroad access( unit train delivery) Siding length allowing mainline clearance Ability to access unloading facility with unit train: usually a loop track design Ability by plant to unload within defined timeframe (usually 16-20 hours) Capacity to load outbound on separate track ( defined by the FDA.)

8. Feed stock availability (year round) Corn processing plants consume approximately 1-train (11,000tons) every 3 days (max design for most US plants) This is equal to approximately 575 trucks Site sizing may allow for large amounts of on-site storage

9. Outlet for distiller’s grain/wet cake (If using earlier corn process technology) Close proximity to feed lots is desired Almost 100% guarantee this by- product will be shipped via truck Ensures there will be daily competition for roadway resources Puts higher roadway ADT in an area where this is surely rail service

10. Process with Distiller’s grain by- product

11. Optimal ethanol market entry (Either unit train, or ready truck competitive delivery.) Most plants require some if not all output to be trucked into regional market If unit-rail delivery, additional rail ADT’s….most equate to 90 cars of output for each 110 cars feed stock

12. Process… Railroad 10% submittal Permitting requirements met Local and regional services (To often forgotten) DOT coordination

13. Summary Ethanol plants will continue, but the expectation is existing plants will accommodate production New feed stocks into existing facilities will affect ADT’s… Additional ADT’s in areas of distribution a given