1. South Dakota Corn Growers Association January 8-10 Meeting Mary Beth Stanek Director, Advanced Technology and Government Relations General Motors

2. GM 2015 FlexFuel Vehicles We are offering 14 FlexFuel vehicle models to consumers :  Buick Lacrosse  Chevrolet Silverado, Silverado HD, Express, Tahoe, Suburban, Impala, and Equinox  GMC Sierra, Sierra HD, Savana, Yukon, Yukon XL and Terrain Additionally, the Chevrolet Captiva and Impala Limited, and Caprice and Tahoe police pursuit vehicles, are FlexFuel vehicles available to fleet and commercial customers More than 8.5 million of the 14 million flex-fuel vehicles on the road in North America are GM cars and trucks. We have built and sold more than 9.5 million around the world Ethanol Benefits We are committed to alternative fuels and believe biofuels are the most near-term solution to reduce petroleum dependence and carbon dioxide emissions. In comparison to gas, ethanol burns cleaner, emitting 21 percent less CO2.

3. Future Fuels- Auto perspective Alignment with stakeholders- Ag-Auto-Ethanol Work Group Prime the Pump Octane-extremely important fuel property High torque, power and efficiency Ethanol high in RON, high cooling effect “more effective” Octane benefit with smaller turbocharged engine is optimal Ethanol- octane source and volume extender (when combined with appropriate propulsion and other fuels) Octane specifications Dedicated new high octane fuel needed with coordinating timetables Progress Future Focus

4. Future Fuels- Auto perspective Environmental reputation management Uneven pricing-consumers like predictable pricing Affordability- Get to Europe model on pricing Uncoordinated implementation strategies Need 87K octane standard- each state managing octane grades Need to coordinate to get to much higher octane standard Issues to address

5. ASTM (Primary U.S. fuels standard setting organization) ASTM D4814, “Standard Specification for Automotive Spark-Ignition Engine Fuel” is the dominant gasoline specification in the U.S. Canada and Mexico have their own standards however typically model theirs after ASTM. D4814 sets limits for gasoline seasonal volatility changes (RVP and distillation limits), fuel stability and reactivity however… …there is no mandatory Octane number specification within D4814. The result of not having a standard is that gasoline octane level in the market varies widely and states have used other standards (e.g. NIST Handbook 130) to define the Regular, Mid-, and Premium grade octane levels. States need a defined limit so State Weights and Measures officers can enforce and protect the public from fraud. OEMs need a defined 87 AKI minimum for Regular Unleaded so vehicles (and other internal combustion engine applications) can be further optimized allowing customers to realize greater fuel economy. Issue: OEMs protect to the lowest octane level available in the market, i.e. 85 AKI Society benefits from more efficient vehicles and higher quality (octane) fuels because there are well–to-wheels benefits in GHGs and vehicle operating costs for consumers. U.S. Octane - Background

6. U.S. Marketplace Octane Data Market gasoline data shows the actual measure octane is usually greater than the posted octane. A small percentage (<3%) of U.S. gasoline, primarily sold in the Rocky Mountain states, is below 87 Posted Octane but reduces FE and increases GHGs for all U.S. and Canadian vehicles calibrated to Regular Unleaded South Dakota sells 87 AKI Regular Unleaded in the eastern part of the state but 85 AKI in the western part (e.g. Rapid City)

7. Denver vs U.S. Regular Unleaded Gasoline_Retail Price History GasBuddy Data (no historic Rapid City, SD data available on website) Example: Denver Regular Unleaded (85 AKI) is not always cheaper than Avg. U.S. Regular Unleaded (87 AKI) Denver consumers often pay more for a sub-standard product They would get 1 – 2% greater FE using 87 AKI Regular Unleaded Western State refiners a few years ago were making an 85 AKI E0 (no ethanol) now they produce an 85 AKI E10 (lost octane opportunity)

8. ASTM New Workgroup: Discuss developing a Higher Octane Gasoline Spec for future high efficiency vehicles, e.g. RON 98, min.?? Many stakeholders researching the benefits of higher octane on vehicle performance and well-to-wheel GHGs. CRC, USCAR, multiple U.S. Dept. of Energy programs, MIT, etc… USCAR Fuels Working Group Publishing three paper series on the benefits of higher octane 1 st Paper – Refinery Impacts: GHG (slide 10) and Economic (slide 11) 2 nd Paper – Engine Benefits (Efficiency & GHG) (slide 14) 3 rd Paper – WTW Impacts of Higher Octane (slides 16, 17 & 18) USCAR Conclusions Higher octane gasoline provides an opportunity to increase light duty vehicle efficiency and reduce CO 2 emissions using the existing fuel distribution infrastructure. Ethanol is one attractive fuel option to increase octane and reduce GHG footprint. Higher octane gasoline can provide simultaneous reductions in WTW CO 2 emissions, crude oil use, and societal cost. U.S. Octane – Future Fuels Work

9. U.S. DRIVE Fuels Working Group Working on pathways to higher efficiency internal combustion engines (ICE) Members: USCAR, API, DOE Timing: Phase 1 (higher efficiency near term spark ignited ICE engines) report June 2016 TTW Benefits: CRC AVFL 20, 20a, 26 engine efficiency data WTT Impacts: Jacobs Engineering led by Argonne National Lab (ANL) WTW Analysis: ANL Michael Wang’s group DOE 2016 Launched very large “OPTIMA” program – multiple National Labs with Integrated Research Objective: Co-optimized fuels and vehicles as a system for greater engine efficiency and GHG reductions U.S. Octane – Future Fuels Work