1. BIOFUELS DISTRIBUTION Tom Lynch NTTC Vice President and General Counsel

2. Introduction National Tank Truck Carriers, Inc. (NTTC): National Tank Truck Carriers, Inc. (NTTC): Represents approximately 210 for-hire bulk highway carriers Represents approximately 210 for-hire bulk highway carriers Transporting hazardous cargoes, food products, and dry bulk Transporting hazardous cargoes, food products, and dry bulk

3. More than 10,000 fuel delivery trailers More than 10,000 fuel delivery trailers More than 26,000 chemical trailers More than 26,000 chemical trailers Approximately 2,200 compressed gas trailers Approximately 2,200 compressed gas trailers Almost 10,000 dry bulk trailers Almost 10,000 dry bulk trailers Approximately 6,600 “non-spec” trailers Approximately 6,600 “non-spec” trailers NTTC MEMBERS OPERATE (source: NTTC Equipment Survey, 2003)

4. The For-Hire Bulk Highway Industry

5. K EY ISSUES 1. Burgeoning and Volatile Marketplaces Biodiesel Biodiesel Ethanol Ethanol 2. No pipelines Tank truck Transportation is Critical (Along with that of Rail and Barge) Tank truck Transportation is Critical (Along with that of Rail and Barge)

6. KEY TANK TRUCK ISSUES 1. Driver Shortage 2. Equipment Shortage 3. Delivery Window

7. KEY TANK TRUCK ISSUES Driver Shortage (compounded by hazardous cargo requirements i.e. Ethanol) Driver Shortage (compounded by hazardous cargo requirements i.e. Ethanol)  Hours of Service  Hazardous Materials Endorsement and other Federal Background Checks FAST FAST TWIC TWIC

8. KEY TANK TRUCK ISSUES 2. Equipment Shortage The Aluminum Associations, Inc. reported that the aluminum market experienced a growth rate of approximately 100 percent during the 1990s, with passenger cars responsible for most of the increase. (source: Aluminum Associations, Inc. The Aluminum Associations, Inc. reported that the aluminum market experienced a growth rate of approximately 100 percent during the 1990s, with passenger cars responsible for most of the increase. (source: Aluminum Associations, Inc. Alcoa Announces Price Increase for Aluminum Powder PITTSBURGH -- June 5, 2007: Alcoa has experienced significant aluminum powder cost increases… (source: ALCOA website) Alcoa Announces Price Increase for Aluminum Powder PITTSBURGH -- June 5, 2007: Alcoa has experienced significant aluminum powder cost increases… (source: ALCOA website) Cutbacks Are Set to Lift Cost of Aluminum BUSINESS ASIA By Bloomberg 27 December 2005, 12:00 CST Cutbacks Are Set to Lift Cost of Aluminum BUSINESS ASIA By Bloomberg 27 December 2005, 12:00 CST By Tan Hwee Ann Aluminum prices may rise for a fourth year because of a combination of increasing demand and a shortage of smelters to make the metal… (source: International Herald Tribune)

9. KEY TANK TRUCK ISSUES 2.Equipment Shortage (source: Report on THERMEX QST for Financial Year 2006-07)

10. KEY TANK TRUCK ISSUES 3.Timeliness/Delivery Window Especially with Ethanol, Customers Chase Production and Shop Price Especially with Ethanol, Customers Chase Production and Shop Price – Challenge of out-of-route deliveries due to volatility of markets – Historically, easier to load ethanol tank trucks from barges than rail cars

11. MOTOR CARRIER CONCERNS ISSUE: Increasing patchwork quilt of state boutique biodiesel mandates. (see e.g. Minnesota) ISSUE: Increasing patchwork quilt of state boutique biodiesel mandates. (see e.g. Minnesota) NEED: Uniformity – a federal biodiesel mandate. NEED: Uniformity – a federal biodiesel mandate. Quality Standards Quality Standards Labeling to deal with different grades of biodiesel Labeling to deal with different grades of biodiesel

12. BIOFUELS DISTRIBUTION www.tanktruck.org www.tanktruck.org www.tanktruck.org 703/838-1960 703/838-1960