Flexible Fuel Vehicle Club of America

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Paving the Road to Economic, Environmental, and
Energy Security Miami, Florida October 9, 2009
Driving a Path to 2nd Generation Biofuels
Burl Haigwood President FlexFuel Vehicle Club of
America
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Clean Fuels Foundations Ethanol Across
America CampaignFlexFuel Vehicle Club of
AmericaTired of Just Complaining About Our
Nations Oil Addition? Join the Club!
The First Step on the Path The Florida FFV
Awareness Campaign
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Presentation Overview

• Why are We Here The Convergence of Economic,
  Environmental, and Energy Security Issues.
  Consensus From My House, to Your House, to the
  White House says do something!
• FlexFuel Vehicle Club, FFV Awareness Driver
  Education Campaign
• Whats the problem?
• Whats the hurry?
• What can we do to get to 2nd Generation Biofuels?

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Whats The Problem?

• Energy Security Based on a Hierarchy of Energy
  Priorities
• Replacing oil is critical, we need to do more
  than just change light bulbs.
• The U.S. uses 25 of the worlds oil and has 3
  of the worlds reserves.
• Energy and economic security 88 of the Worlds
  Oil is in the wrong place.
• There is consensus that energy use plays a large
  role in climate change.
• Environmental security Man made vs. natural
• The U.S. imports about 70 of its oil and cannot
  control the price.
• Economic and national security
• 70 of U.S. oil use is for transportation and 2
  is used for electricity.
• The transportation sector is 96 dependent on
  oil/gasoline.
• 61 of oil used in transportation is in light
  duty vehicles and 95 of light duty vehicle
  energy consumption is gasoline. (oil?imported
  oil?gasoline).
• Energy security and national security efforts
  should be focused on replacing gasoline.
• Consumers will have to play an active role in
  achieving energy security and economic
  stimulation by purchasing low carbon/renewable
  derived alternative fuels.

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Whats The Real Problem?

• Lack of Consumer Education Understanding The
  Real Cost of Oil
• When adding the indirect costs associated with
  oil production and use, consumers were paying 4
  per gallon for gasoline in 1990 -- prior the
  Persian Gulf Wars or reaching international
  consensus on climate change and the impact of
  fossil fuel use.
• Defending and protecting the free flow of the
  worlds oil supplies have been a top priority of
  the Department of Defense since 1945.
• External costs of oil make alternative fuels a
  bargain.
• The economic and social benefits of alternative
  fuels make inaction a social injustice.
• Using alternative fuels is not altruistic Its
  Personal

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Responding to the Critics of Competition and
Change Context Perspective

• Is Ethanol Bad?
• Compared To What?
• War, Death, and Terrorism
• Increasing the Cost of Social Programs
• Rising Health Care Costs
• Rising Insurance Costs (Climate Change)
• Geopolitical Instability
• Advancement of Nuclear Weapons in the Middle East
• The Cost of Doing and Getting Nothing

• The Rubik Cube
• All Things Considered
• Cost Speed to Market
• Scalability
• Funding (Gov. vs. Private)
• Economic Stimulation
• Consumer Acceptance
• Environmental Improvement vs. Perfection

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Whats the hurry?

• World oil demand is expected to double by 2030.
  That is an increase of about 20 million barrels
  of oil per day, or enough new oil to meet annual
  U.S. gasoline demand the largest gasoline
  market in the world.
• In 22 years we will need to find the equivalent
  of two friendly Saudi Arabia oil producers?
• As a result, there is a growing consensus and new
  sense of urgency to find the quickest path of
  least resistance to consumer change.
• Brazil has already accomplished our FlexFuel
  Vehicle, Blender Pump, Consumer Choice, consumer
  education, empowered consumer mission. We are now
  standing in the space and cost of a lost
  opportunity. For no apparent reason.

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What are your options?-- Thinking Inside the Box
--
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How long will it take?

• About 99 of the 240 million vehicles on the road
  in the United States can only use gasoline. The
  U.S. burns 150 billion gallons of gasoline each
  year.
• There are 380,000 are hybrids are on the road.
  They saved 230 million gallons of gasoline per
  year in 2007
• There are 20,000 electric vehicles on the road
• There are 150,000 natural gas vehicles on the
  road
• There are 7,000,000 Flexible Fuel Vehicles on the
  road that could save about 5 billion gallons
  (15,000 mpy/20 mpg 750 gpy). 1 million new FFVs
  were sold last year.
• There are about 14 million new vehicles sold each
  year and it takes about 17 years to turn the
  fleet over to new car/fuel/technologies.
• Efficiency It will take a long time and cost a
  lot of money to conserve our way out of using
  gasoline or stop using liquid fuels. We need to
  save it when we can and replace it even faster.

Too long to stop, wait, whine, worry, or repeal
existing efforts
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Whats Stopping 2nd Generation Biofuels and the
RFS?

• The transparency of the federal ethanol program
  will end in the next 18-24 months when ethanol
  sales/production hit the proverbial E10 blending
  wall (i.e., 14 billion gallons of ethanol blended
  at a 10 level into 140 billion gallons of
  gasoline). Upon impact consumers will be faced
  for the first time -- with the choice of putting
  a higher than 10 ethanol blend level into their
  legacy vehicle or their FFV or the nation will
  not meet the national renewable fuel standard
  goal of placing an additional 21 billion gallons
  of ethanol into the nations gasoline pool.
• Therefore, the 10 ethanol blend wall will
  transform the federal ethanol program from an
  invisible program that has little consumer
  interaction to a program will have to rely on
  enthusiastic support from consumers volunteering
  to change their buying habits and repeatedly buy
  higher than 10 blends of ethanol at a price
  that can sustain project development.

The Human Factor . . .
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The Pathway is in the Drive Way

• The nation needs a low carbon/renewable liquid
  fuel that is not petroleum based that is
  compatibly with existing refueling
  infrastructure.
• The RFS capped corn-based ethanol.
• The E10 blending wall is here.
• Ethanol is the only available commercial scale
  option to save gasoline and it has to be sold at
  blend levels above 10 to continue its success.
• The ethanol market has to grow to attract
  investors to 2nd generation biofuels plants.
• Therefore, FFV owners are the most likely early
  adopters to use higher blends of ethanol and
  they need to drive our way to 2nd generation
  biofuels.

And The FlexFuel Vehicle Club is Going to Find
Them!
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What is the FlexFuel Vehicle Club and FFV
Awareness Campaign?
Locate Educate Motivate

• Web-based, membership driven, very unique new
  community-of-interest. It will corral, nurture,
  harness, and activate the power of millions of
  existing and future FFV owners. Designed to stop
  the traditional one-way flow of information of
  typical outreach efforts.
• The FlexFuel Vehicle Club is modeled after the
  environmental community. Create a unified and
  effective voice with some consumer power to back
  it up. The Sierra Club has 1.3 million members.
  There will be 12 million FFVs on the road by
  2012.

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Florida FFV Awareness CampaignNo Driver Left
Behind

• The FFV Awareness campaign is a driver education
  program to help meet the goals of the Renewable
  Fuel Standard contained in the Energy
  Independence and Security Act of 2007. Similar
  to other efforts to educate drivers about
  aggressive driving, speed limits, seatbelts, or
  driving under the influence -- this campaign is
  about teaching the responsibility of knowing
  existing laws and regulations that impact the
  driver and the safety of the public.
• Work with every willing country, public office
  holder, and the leader of faith groups, clubs,
  civic groups, schools, colleges, and those
  overseeing the media need to give them a clear
  understanding of the connection between renewable
  transportation fuels and almost everything their
  constituents are trying to achieve. They need to
  help convey our message of responsibility,
  action, and hope for prosperity to their
  constituents.
• Work with the FFV Makers to educate their
  immediate community of drivers.

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Florida FFV Awareness CampaignNo Driver Left
Behind

• 95 of refueling stations are independently owned
  and make about 40,000 per year. They are not
  likely going to take on the risk of investing in
  new ethanol refueling infrastructure without the
  support of the government or consumers. Its
  simply not their responsibility. We need to help
  those willing to help consumers.
• Work to call off the environmental community
  attack dogs blasting ethanol as it is currently
  the only realistic domestic fuel solution to help
  stop oil dependence, greenhouse gases in the
  transportation sector, fueling terrorism and war
  in oil rich countries, and the economic hardships
  facing our country. No one will volunteer to be
  an altruistic environmentalist when they do not
  have a job.
• Nothing is stronger than the power of a consumer
  driven marketplace powered by ethanol.

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Tired of Just Complaining?Join the Club!