This document summarizes a presentation on ethanol development strategies given by Greg Krissek. It discusses the Kansas Corn Commission's financial support for ethanol initiatives totaling over $2.1 million in the last 6 fiscal years. It also provides an overview of the National Corn Growers Association and its support for ethanol. The presentation outlines several short and long-term strategies to increase ethanol use and availability, including initiatives to promote E15, E25, and E85 fuels as well as efforts to increase flexible fuel vehicle usage.

1. Presentation for the Kennedy and Coe Leaders’ Summit: Ethanol Development Strategies
Greg Krissek
December 10, 2014

4. Kansas Corn Commission’s Financial Commitment to Ethanol
•
Last 6 fiscal years combined > $2.1 million
•
Prime the Pump
•
American Ethanol
•
Ethanol Expansion + Promotion
•
Flex Pumps
•
Research Projects/Regulatory Support

5. National Corn Growers Association
48 Organizations:
25 Grower-Affiliated State Associations
23 Checkoff Boards
Representing:
300,000+ Checkoff Investors
42,000+ Members Nationwide
Membership record of 42,100 in July 2014
State Organizations and Grower Members
Grower Members

6. Ethanol Development Strategies
•
Short Term v. Medium/Long Term
•
Industry Producers (w/Corn) – Prime the Pump
•
Corn States – Fueling A Better America
•
Equipment Manufacturer Dialogue (w/help from …)
•
American Ethanol Branding
•
Renewable Fuels Standard – Fuels America
•
The annual volume obligations (RVO) – 2014 +2015
•
Higher Octane Fuels - CAFÉ support to OEM’s
•
Tier 3 – E30 Status
•
Urban Air and MOVES Model

7. Funding Industry
need for coherent plan with marketing and communication
Autos
•
Push for FFV demand
•
Publish on MLEB efficiency gains
•
2012 FFV peak production
•
“INFRASTRUCTURE – INFRASTRUCTURE – INFRASTRUCTURE”
•
Dislike E15
Consumer ‘mis-attitudes’
•
Ethanol hurts my car
•
Ethanol starves people
•
Corn and ethanol are subsidized
•
ETC……
P2+, FABA (med-long term)
•
Requested by corn
•
E25 standardization
•
Target FFVs
•
Align and amplify state work in infrastructure and marketing communication
PtP (short-term)
•
E15 as the new E10 (and E85)
•
Can’t make margins work for E85
EPA
•
RFS?
•
RFS not align with CAFE
•
F-factor; Tier 3 (no MLEB cert fuel; no R- factor enhancement)
Oil Explorers Oil Refiners Oil Distributors ‘How will they push back?’
Prime the Pump E15 centric
Fueling a Better America
E25-E85 centric
Consumer Demand 7

8. Comparison of PtP and P2+
Prime the Pump
Padd II Plus
Objective
Increase ethanol through -->
E15 (and blender) pumps
1)
E25
2)
Target FFVs with E25-E85 2) Regional/national consistent and targeted marketing campaign and brand
Funders
Ethanol, Corn, TBD
Ethanol, Corn, Ag, TBD
Funding to Date
$20 million +
In progress
Award Criteria
Must be canopy, 5 year commitment, high volumes, street ads, public announcement
Same as PtP plus…..
-increase E25 infrastructure
-increase FFV usage of E85
-marketing campaign to increase consumer demand

9. Ethanol Committee: Motion March 2014
NCGA should pursue participating in the Poet/ADM E15 infrastructure plan. The Committee highly recommends a board seat but not necessarily at the multi-million dollar level. The Committee supports NCGA staff negotiating the details of the board seat. The Committee feels that an additional long-term plan should also be simultaneously pursued. Motion Passed.
July, 2014: Recommendation from the EC
The EC recommends that PtP and P2+ work together if possible and communicate frequently to dovetail efforts for optimum synergy.
Corn Board echoed the same motions from the Ethanol Committee

10. Two-part program (Longer-term plan]
Two-pronged Approach
1). Infrastructure to ensure availability and access
-E25 standardization (prioritized)
-Strategically target E85
2). Marketing communication to drive consumer demand for increased volumes of ethanol

11. State Corn associations infrastructure Examples
State
Number of E85 Stations*
State Specific Activities
Minnesota
>300
•
$ Millions invested
•
American Lung partnerships
•
Yellow hose program
•
American Lung
•
Grant programs
•
Marketing communication programs (fairs, retailers, FFV owners, etc.)
•
IL Pilot Program with Gilbarco
•
NASCAR
•
History of working with RFA, GE, funding Blend Your Own (BYO, RFA/ACE)
Illinois
225
Michigan
197
Iowa
185
Indiana
176
Wisconsin
131
Ohio
113
Missouri
103
*Fuels Institute (2014) E85 A Market Performance Analysis and Forecast

12. Marketing communication plan
•
Overview:
•
Extensive work done by states in the past (have held 1:1 meetings with MN, IA, WI)
•
Goal is to build and coordinate to ALIGN and AMPLIFY
•
5-year program
•
First-year launch in test markets, tentatively identified (needs to be discussed with IDG):
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Detroit
•
Minneapolis
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Dallas (or some other southern city)

13. Current Status
Ethanol Communications Group (ECG)
Work on the day-to-day details of the marketing communication piece. Members include:
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Consulting Agency (Les and Craig)
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IA Corn, Shannon Textor
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WI Corn, Tom Thieding
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NE Corn, Kim Clark
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MN Corn, Mitch Coulter
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NCGA, Mark Lambert, Ken Colombini, Pam Keck
1:1 interviews with 3 states by Les/Craig on best practices
Budget development with 3 pilot sites in progress
Infrastructure Development Group (IDG)
Work on the day-to-day details of the infrastructure piece. Members include:
•
Deere, Chuck Studer
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Monsanto, Kevin Coffman
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MO Corn, Bradley Schad
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OH Corn, Tadd Nicholson
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IL Corn, Dave Loos
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NCGA, Pam Keck
•
American Lung of UMW, Kelly Marczak
E25: Gilbarco discussions underway; Wayne in progress
FFV targets: Need to determine targeted locations and link with marketing communication plans 13

14. American Ethanol
#3 Austin Dillon, Richard Childress Racing

15. Benzene, Toluene,
Xylene, Hexadiene,
Dimethylhexene,
Nonene, Octane,
Decalin, 1,3-pentadiene,
Tetrafluoroethane,
Trimethylcyclohexane,
Ethylidenebis-benzene,
Trimethylnaphthalene,
Dimethylcyclohexane, Isobenzofurandione,
Pentadiene, Dinitronaphthalene,
Dimethylphenanthrene, Hopane, Butane,
Isobutene, Methylfluroene, Benzofuran,
Dimethyl-1-hexene, Trimethylhexane, Dinitrophenol,
Ethylcyclopentane, Trimethyltridecane, Dinitrofluroene,
Ethylbutene, Hexanone, Methyl-phenyl-propene,
Ethyloctane, Ethylheptane, Abietic acid, Acetic acid,
Acetophenone, Ammonia, Azelaic acid, Sterane, Terpane,
Cis-decalin, Cis-pinonic acid, Decanal, Decanoic acid,
Decyclclohexane, Diethayl phthalate, Dimethyl dodecane, Docosane,
Elaidic acid, Ethyl dimethyl benzene, Carbon tetrachloride, Cerium,
Ethyl hexanol, Eugenol, Fluride, Formic acid, Furfural, Glutaric acid,
Guaiacol, Henicosane, Heptanal, Heptanedioic acid, Heptylcyclohexane,
Hexadecanoic acid, Hexadecane, Hexanoic acid, Icosane, Indanone,
Isoamylbenzene, Isoeugenol, Lauric acid, Limonene, Maleic acid, Malonic acid,
Methyl chloride, Methy dodecane, Octanal, Octanedioic acid, Octylcyclohexane,
Oleic acid, Cresol, Pentachlorophenol, Pentylcyclohexane, Perinaphthenone,
Phosphates, Phthalic acid, Phytane, Picolinic acid, Pinacolin, Pristine, Propyltoluene, Sitostane, Sitosterol, Stearic acid, Syringol
What's in Ethanol?
What's in gasoline?

17. 5
7
9
11
13
15
17
19
21
23
Billion Bushels
Aggressive
NCGA Strat Plan
Source: NCGA
Corn Supply Potential
(83 M Acres Harvested)

18. Questions?
Greg Krissek
Kansas Corn
gkrissek@ksgrains.com
Kansas Corn Mission –
Creating opportunities for
Kansas corn producers

19. Then and Now: Corn Uses
5.3
4.7
1.1
3.9
1.4
1.6
1.9
1.3
2013
1993
Feed
Distillers Grains
Ethanol
Other Domestic
Exported
Source: USDA/PRX
Billion Bushels

21. U.S. Biotech Corn Acreage, 2000-2013
0
10
20
30
40
50
60
70
80
90
100
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
% corn acreage
Bt
Herb Tol
Stacked
Source: USDA, NASS

22. What Uses More Corn?
•
USDA estimates 5.3 billion bushels of corn will be used for feed and residual.
•
Ethanol production will create the equivalence of 1.1 billion bushels more corn feed, as distillers grains.
•
Of 1.6 billion bushels exported, about 1.1 billion bushels (80%) will be used as feed.
Feed total: 7.5 billion bushels
•
USDA estimates 5 billion bushels will be used to produce nearly 14 billion gallons of ethanol.
•
This process will also produce distillers grains, the equivalence of 1.1 billion bushels of corn for livestock and poultry feed.
Ethanol total: 3.9 billion bushels
Source: USDA, PRX

23. Land Use
Soil Loss
Irrigation
Energy
Climate
Amount of land to produce one bushel of corn
Soil loss per bushel, above a tolerable level
Irrigation water use per bushel
Energy used to produce one bushel
GHG emissions per bushel
30%
67%
53%
43%
36%
Fewer Inputs, Impacts: 1980-2011
Source: Field to Market