National FlexFuel Vehicle Awareness Campaign

1. National FlexFuel VehicleAwareness Campaign DMV FFV Driver Education Project Presented by the Clean Fuels Foundation To the American Association of Motor Vehicle Administrators August 2011

2. The Messenger • Clean Fuels Foundation • Mission is education & outreach (501 c 3) • The National FlexFuel Vehicle Awareness Campaign is a public education project of the Clean Fuels Foundation. • The project team is uniquely and expertly qualified to engage FFV dealers, E85 retailers, and government and industry stakeholders to help the nation achieve the goals of the National Renewable Fuel Standard (RFS). 1

3. Consensus: FFV Awareness Campaign Endorsements State NGO Endorsements in Target Markets Alamo Area Clean Cities Coalition Central Texas Clean Cities Coalition East Tennessee Clean Fuels Coalition Florida Biofuels Association Iowa Office of Energy Independence Maryland Grain Utilization Board Maryland Clean Cities Coalition Minnesota Corn Growers Association Texas Renewable Energy Industries Association Virginia Clean Cities Coalition 2

4. The Message: The National Renewable Fuel Standard (RFS) The Energy Security Act of 2007 (EISA07) requires U.S. gasoline refiners and blenders to sell 36 billion gallons of renewable transportation fuels per year by 2022. The RFS requirement limits the amount of ethanol from corn at close to its current capacity of 15 billion gallons per year (BGPY). Of the 36 BGPY RFS2 total, there are nested subsets of 21 BGPY of advanced biofuels, 16BGPY of which must be cellulosic biofuel, and the remaining 5 BGPY of "other" advanced biofuels including biomass-based diesel. “The renewable fuel standard (RFS) and the recent RFS2 rulemaking was extensively peer reviewed and represents among the most commented on regulation during my 30 years at the U.S. Environmental Protection Agency. The release of the RFS2 regulations represents hundreds of thousands of hours of research, analysis, and input from government, industry, academia and the public. The results of the research and the RFS2 Regulatory Impact Analysis quantifies the economic, environmental, and energy/national security benefits of the use of biofuels to meet the federal RFS.” Margo T. Oge, Director, Office of Transportation and Air Quality Office of Air And Radiation, U.S. Environmental Protection Agency, before the Governors Biofuels Coalition, February 23, 2010. 3

5. Reaping the Benefits of the RFS • Economic Security Impact Analysis • The net economic benefit of the RFS in 2022 will be $13B to $26B. • Capital investment into renewable fuel production is estimated at $100+ B. • Rural development and net farm income will increase by 36%, or $13B/yr. • The nation’s imported oil bill will be reduced by $34 B annually. • Consumers will save 4.1 cents per gallon on all gasoline and 1.8 cents for diesel. These annual savings amount to $5.9B for gasoline, $1.3B for diesel, for a total savings to consumers of $7.2B per year. Depending on the mix of diesel to ethanol, the range could go up to a total of $11.8B in total fuel cost savings. Fuel savings were based on baseline assumption that oil would cost $88 per barrel in 2022. • Consumers might spend as little as $10 more per person on food prices annually. Source: RFS2 regulations on February 3, 2010. 4

6. Reaping the Benefits of the RFS • Environmental Security Impact Analysis • Greenhouse gases will be reduced by 138 million tons per year or the emission reduction equivalent of removing 27 million vehicles from the nation’s highways. • Carbon monoxide will be lower due to lower exhaust emissions. • Carcinogens (e.g., benzene down 2.5%) and other air toxics will be reduced due to the displacing of gasoline with ethanol/biofuels. • Energy Security Impact Analysis • The U.S. imports 66% of its oil needs and 70% of its transportation fuels. • The RFS will save $2.6B annually in energy security related costs by 2022. Source: RFS2 regulations on February 3, 2010. 5

7. Challenges to Achieving the Benefits of the RFS • Increased ethanol production (i.e., cellulosic/advanced ethanol) and use (i.e., E10 Blend Wall/market saturation). • Because of the E10 Blend Wall , and if biofuels are to continue to advance, FFV owners will need to voluntarily purchase higher than 10% blends of ethanol to meet the RFS. • Therefore, consumers have to be educated about new vehicle and fuel choices to support existing refueling infrastructure investments and then attract new refueling investments. • To succeed, FFV dealers, state agencies, and the Federal government will all have to be engaged and requested to participate. 6

8. The FFV Mission Meets the Challenges • FFV Awareness Campaign Mission • Locate and educate owners of FlexFuel Vehicles (FFVs) and motivate them to use higher blends of ethanol – in order to meet the goals of the national Renewable Fuel Standard (RFS). • Collaborate with Federal and State Government Agencies • Collaborate with federal agencies and engage state agencies (e.g., DMV, Agriculture, DOT, EPA) to implement the Campaign’s “State Government Biofuels Roadmap.” • Leverage Stakeholder Resources • Train, organize and mobilize NGOs, FFV Dealers, E85 retailers with the Campaign website, media events, and promotions. 7

9. Approach: Leveraging Resources to Achieve Common Goals • The RFS is similar to other national “for-the-common-good” pieces of legislation. • Therefore, no single entity should or could be responsible for completely funding and/or executing a public education campaign that could change consumer values and buying habits – which is needed to meet the RFS. • The RFS is safe common ground for the common good. It can unify public and private partners to take responsibility for this national law and engage in public education activities to change behavior. The nation has succeeded many times before. 8

10. Strategy: Reach FFV Owners & Dealers, and DMVs • Easy and Simple Co-Branding of FlexFuel Vehicles with FlexFuel pumps and FlexFuels • The goal is to make “FlexFuel Vehicle” and “FFV” positive household words synonymous with economic, environmental, energy, and national security. It’s like Energy Star for your car! • The FFV Campaign focuses on increasing throughput after the refueling investment to meet the RFS (push) and attracting new refueling infrastructure investment (pull) with program success. 9

11. The Campaign has many simple, positive, and sustainable news stories… …with easy Dick and Jane value propositions the public can understand and will believe. Using higher blends of ethanol is not altruistic – its personal. The nation’s /individual’s addiction to oil and gasoline has direct and negative impacts on every individual’s economic, environmental, energy, and national security. The use of ethanol to replace gasoline has positive impacts as defined by EPA’s RFS2 regulatory impact analysis and should be supported by state governments. 10

12. Kaizen • Continual Improvement and Adjustments To the FFV Campaign • Will Lead to Short Term and Sustainable Results • Florida • FFV Club pilot projects • Support from RFA and UNICA • Working with stakeholders • Texas • E85 Station Openings with Central Texas Clean Cities (Austin) • Ethanol Workshop and Ethanol Working Group with Alamo Area Clean Cities (San Antonio) • Ohio FFV Awareness Campaign • Demonstration project • Partnering with Clean Cities on DMV database fuel awareness Campaign • Maryland/DC/Virginia • Introduced State Biofuels Roadmap • Working with Virginia Clean Cities on FFV database and MDEO on USDA/REAP program. • Tennessee • Collaborate with USDA and East Tennessee Clean Fuels Coalition on the State Government Roadmap, I 75 Green Corridor, and new E85 station openings • Other efforts in FFV Target areas in the South, Southeast and Northeast 11

13. Tested ,Turnkey, and Ready to Rollout & Replicate State Fleet and/or Inspection Station Decal Brochure for POP, Pumps or Info Business Card State DOT Road Sign Reminder Mirror Hang Tags for FFV Dealerships, Fleets & Car Rentals, And Tag & Release Promotions Retail POP, Pump Top, Station, FFV Dealer Decal Promote Civic Pride Customer Engagement Opportunities 12

14. What Will We Do? Endorse, Engage, and Execute Ohio FFV Awareness Campaign Demonstration Project and Model Education/Earned Media Point of Purchase Education 13

15. What Can Happen? • Minnesota has 225,000 FFVs and 350 stations carrying E85. Education and outreach efforts increased FFV awareness from 10% to 50% and increased federal and state fleet use of E85. E85 sales increased from 8 to 22 million gallons in three years – nearly a 300% increase! • Iowa reported a 43% increase in E85 sales in 2010, reaching 9.31 million gallons. Iowa currently has 138 retail outfits offering E85. North Dakota and South Dakota are also growing E85 markets. • Market tests in Florida and Texas are reporting education and outreach can increase higher blends of ethanol by up to 30% within a few months. • New Needs to Consider • Effort vs. Volume, Cost per Gallon, Larger New FFV/Gasoline Target Markets, earned media vs. buying media, are there any other efforts or options? Public Education Works. When Stakeholders Work Together ! 14

16. How, Who, What and Why: FFV Awareness Campaign Rollout This presentation Brief focuses on the DMV Project within the FFV Campaign Establish Core FFV Campaign Stakeholder Team Identify and Contact Stakeholder Targets For Endorsement and Engagement State Government FFV Dealerships E85 Retailers NGO Stakeholders Tool Box of Possible Action Items, Tasks, and Deliverables DMV/FFV Database, inspection/registration. DOT for Signs. Ag, Energy, Environ., Econ. Development , Meetings Sales/Service Training Buyer Outreach Public Outreach FFV Outreach Promotions/Events POP Education Info - General Public - FFV Owner - FFV Dealer Promotions/Events Press Conferences Media Releases Prepared Articles Feed Social Media Promotions/Events Expected Outcomes: Consumer Awareness and Product Education Leading to the Increased use of Renewable Transportation Fuels to Meet the National Renewable Fuel Standard 15

17. A Well Designed Plan with a Matrix of Outreach Tools 16

18. Examples of Outreach Strategy & Tools… 17

19. Campaign Tasks & Performance Metrics Phase 1: Awareness Develop core stakeholder team communication network, measured by number of endorsements/supporting organizations. Develop and publish content, measured by number of media advisories/press releases, related articles/publications, website content, FFV decals, brochures, PSAs, and other materials distributed. Provide event coordination, execution, and support, measured by number of events (e.g., press conference, workshops, public venues, etc.) created, supported, and/or attended. Leverage and provide support to existing biofuel stakeholders. Provide oversight and encouragement to stakeholders to execute a tool box of education and outreach opportunities, measure by activities 1-3. 18

20. Performance Metrics • Phase 2: Utilization • Increase the sale of E85 and higher blends of ethanol. • Track/validate E85 sales and share data. • Increase the deployment of FlexFuel Pumps. • Monitor pump growth with the DOE and industry stakeholder websites. 19

21. Expected Outcomes • Find Synergy, Promote Collaboration, • and Leverage Resources • Leverage this communication and outreach tool designed for the public, government, public, media, and entry level stakeholders (FFV/E85 Dealers/NGOs). • Sustain this turnkey driver education campaign so Clean Cities coordinators and other local stakeholders can leverage this resource to generate public awareness . • Break through the Fleet Wall. The 600,000 federal fleet vehicles and 3 million commercial fleet vehicles created a great alternative fuel demonstration project that proved alternative fuels and vehicles are a viable option to petroleum. However, demand from this market sector is not enough to have a significant impact on energy security. The consumer also needs to be engaged to meet the goals of the RFS and has to be constantly reminded about the personal impacts and individual responsibility of relying on oil for transportation. What do consumers know about ethanol, FFVs, E85 and oil/gasoline? Limited Resources Time Cost Performance 20

22. Expected Outcomes (continued) • Change public perception and buying habits with education and choice. Follow the similar course and achieve similar results of smoking, seatbelts, teen pregnancy, recycling, drink clean water, and organic foods campaigns. • Create and support opportunities for low-cost and high-impact projects that federal/state government, industry, and NGOs can also support. • State DMV driver education campaign • USDA /REAP funding program for FlexFuel pumps • DOT highway signage for alternative fuels • National FFV dealer education and promotion • National cooperation from NGOs with similar economic, energy, environmental security missions 21

23. Why DMVs Should Support the National FFV Driver Education Project • To Meet Public Safety, Driver Education, and • New Societal Needs and Challenges • There is a tremendous public education learning curve that stands in the way of the nation/citizens achieving long stated national energy security goals. Specifically, energy illiteracy stands in the way of achieving the goals and benefits associated with reaching the petroleum/crude oil reduction goals of the national renewable fuel standard (RFS). • As new fuels and vehicles enter the marketplace the public will need to understand more about their direct and indirect values as drivers weigh vehicle and fueling options against their core values and personal beliefs. Most importantly they will also need to understand product differences between commercially available fuels (e.g., E10 vs. E15 vs. E85) in order to avoid misfueling and circumvent possible safety risks. • There are very few opportunities to engage the public in an environment when they want to, need to, and are willing to learn – because in exchange they can enjoy the privilege of driving. There are also very few opportunities that can leverage so many existing resources and overlapping missions at very little or no cost. • The FFV Campaign is not only about ethanol. These same messages and education outcomes can apply to, and overlap with, the national goal of reducing gasoline consumption from buying new more efficient vehicles and other alternative fuel vehicles and fuels as they emerge. What Markets Fit the Model & What Can You Do? 22

24. Who Will Benefit from the FFV Awareness Project? Your Customers Will Receive the: Economic stimulation and job creation benefits from the production and use of 1st, 2nd, and 3rd generation biofuels, and other alternative fuels and vehicles as they emerge. The environmental protection benefits from lowering /replacing toxics in gasoline and reducing greenhouse gases. National security benefits accruing from reducing oil imports, for which the U.S. still receives 60% of its imports from OPEC, which is equivalent to a transfer of $1 trillion in the past few years. Benefits from lower gasoline prices as fuel ethanol has been proven to increases fuel supplies and lower imported crude oil supplies and prices. The economic, environmental, and energy/national security benefits from the RFS that can only be achieved from the increased production and use of renewable transportation fuels. Benefit of Education. Education. Education. DOT/DMV has a rich history of success when it comes to changing behavior and improving the safety of all drivers and the public. The overall benefits of ethanol have been proven beyond a reasonable doubt. FFV Awareness Campaign educational materials are all government produced and/or accepted peer reviewed based research. What Markets Fit the Model & What Can You Do? 23

25. How Can DMVs Help? • Leadership and Collaboration • Develop the state registration/FFV owner database for internal use and/or to release to state agencies or non-profits that are willing to participate in education and outreach projects (e.g., programs in Nebraska, Minnesota, Ohio, and Wisconsin). • Include educational messages about FFV Awareness and/or local refueling opportunities as part of existing mailings to drivers (i.e., new inserts or new verbiage to existing correspondence) for license renewals and vehicle registrations. • Include FFV, E85, and oil use related information in the driver’s test and test preparation materials. • Post/display educational materials/posters at DMV locations. • Post/display education materials at vehicle inspection and emission stations. What Markets Fit the Model & What Can You Do? A more detailed explanation of program justifications, the plan, and need to work with the DMV on the FFV Awareness Campaign can be viewed on this link. 24

26. Determining Target Markets What Markets Fit the Model & What Can You Do? State FFV Awareness Campaign: State Target Priority Ranking -- Jan 2011 25

27. FFV Awareness Campaign Priority Target Markets Ranking is Based on the Number of FFVs, Gasoline Demand, Existing FlexFuel Pumps, and Potential Stakeholder Support Primary Markets Ohio: Cleveland, Columbus, Cincinnati, Dayton, Toledo MD/VA/DC: MSA + VA: Richmond and Norfolk Texas: Dallas, Houston, San Antonio Georgia: Atlanta Florida: Jacksonville, Orlando, Tampa/St. Petersburg, Ft. Lauderdale/Miami Nebraska: Omaha Kansas: Kansas City Missouri: St. Louis Michigan: Detroit Indiana: Indianapolis (ALA MW) Secondary Markets Minnesota: Minneapolis (ALA UMW) Illinois: Chicago (ALA UMW) Oklahoma: Tulsa Wisconsin: Milwaukee (ALA UMW) North Carolina: Charlotte Kentucky: Louisville Louisiana: Lafayette, Baton Rouge, New Orleans Northeast Corridor: [MD/DC/VA], Philadelphia, New York, Boston, Providence (Clean Cities Support) What Markets Fit the Model & What Can You Do? 26

28. Where can we go and what is [the-art-of-the] possible? The text below is from the DOT/NHTSA Website. The black text is actual language, the underlined text illustrates the precedent for FFV awarenessand the red text is provided to illustrate synergy and the art-of-the-possible for a FFV Awareness driver education program. The Impaired Driving [Fuels & Vehicles] Division at National Highway Traffic Safety Administration (NHTSA) seeks to work cooperatively to save lives, prevent injuries, and reduce traffic-related healthcare and economic costs resulting from impaired driving (alcohol and other drugs)[refueling of automobiles and energy security related conflicts]. NHTSA collaborates with many criminal justice [clean energy, environmental, and health] and community organizations to sponsor impaired driving [Energy and Alternative Fuels & Vehicles ]campaigns such as You Drink & Drive [the FFV Awareness Campaign]. What Markets Fit the Model & What Can You Do? The DOT/NHTSA C.A.R.S. program achieved the objectives set out by Congress to increase automotive sales and aid the environment. In just a few short weeks of sales, nearly 680,000 older vehicles were replaced by new, more fuel-efficient vehicles. 27

29. Questions, Follow up, and Feedback are Always Appreciated What Markets Fit the Model & What Can You Do? How Can We Get Started? Consider using the National FFV Awareness Campaign as a tool to support your state’s biofuel/ethanol/E85 infrastructure/alternative fuel and vehicle efforts. Place the FFV Awareness Campaign banner on your website and we will link yours to ours. Please call us or shoot us an email if you have ideas or suggestions about how we could work together or improve the FFV Awareness Campaign. Burl Haigwood, Director of Program Development, Clean Fuels Foundation Project Manager, National FFV Awareness Campaign 202.441.2400, Burl.Haigwood@cleanfuelsdc.org Doug Durante, Director, Clean Fuels Foundation, cfdcinc@aol.com 28