New Times = New Challenges < New Solutions + Old Partners

An update from the

National Corn Growers Association to the

American Coalition for Ethanol Annual Meeting

presented by

Chris Novak, NCGA CEO

The Challenge Ahead: Building Demand for Growing Productivity

Threatening Demand Growth

• EPA RVO Decision = 1.5 billion bushel lost market

• E-15 Reid Vapor Pressure Restriction

• Varied State Restrictions

• Infrastructure Limitations

• Consumer Confusion

• 2/3 of consumers do not know that there is 10% ethanol already in their gas.

• Majority of respondents not aware that the EPA has approved the use of E15 in cars 2001 and newer.

• Awareness of E15 was very low. Awareness of E85 was slightly higher and was correctly associated with Flex Fuel vehicles.

• Substantial lack of knowledge among respondents about ethanol in general, and how it performs in vehicles.

• For those consumers with a perception of ethanol, the association is generally negative. Seen as compromising vehicle performance (sputtering, etc.) Seen as compromising miles per gallon. Fear that ethanol will harm their engine. At least one driver in each focus group felt strongly that ethanol is “a scam.”

The Consumer Challenge

“If there’s ethanol

in there, I would hope

they would tell us.” – Female respondent,

Minneapolis

SO, WHAT ARE WE DOING?

A New Vision for Our New Reality

Sustainably Feeding and Fueling a Growing World.

• Priority 1 – Increase Demand

• Priority 2 – Strengthen Customer and Consumer Acceptance

• Priority 3 – Enhance Productivity & Environmental Sustainability

• Priority 4 – Strive for Organizational Excellence

Ethanol

• Defend the RFS

• Support Pump Standardization

• Build Infrastructure

Defending the RFS: The RVO Campaign

Comments to the Federal Register o EPA Improperly Applied the Law o EPA Miscalculated Ethanol Use o The RFS Should Force Changes

Comments from States & Industry

Traditional & Social Media

Appeal to White House/Congress

Two Rallies—KC & DC

Evaluating Legal Options

E-25 Pump Standardization

Goal: Replace current industry standard E-10 compatible dispenser with pumps capable of dispensing blends up to E-25. This will deploy sufficient infrastructure to support autos building higher octane optimized vehicles

– Three UL certified pump capabilities: E-14, E-25, E-85 Blender Pumps

– Gilbarco and Wayne represent +90 percent of the U.S. market

– Critical message to Ag-Auto-Ethanol Coalition

The Opportunities Ahead

• A united legal front challenging the RVO proposal

• Utilize available regulatory and legal tools for an RVP Waiver

• A short and long-term plan for retail infrastructure

• Coordinated messages to the auto & petroleum retail industry

• Targeted research to demonstrate GHG & Octane benefits

• An integrated marketing plan to address consumer barriers

• A targeted outreach plan to key decision-makers.

Thank You!

Chris Novak, CEO

National Corn Growers Association

Novak@NCGA.com