Virginia-Maryland-DC E85

• Objective: 12 new public E85 pumps– Where:

• I-95 from Maryland to North Carolina border• I-64 from Charlottesville to Virginia Beach• Near federal and state E85-capable fleets

– When: • By September 30, 2008

– How:• Define and develop E85 supply chain• Partnerships of ethanol producers, fuel distributors/retailers,

vehicle dealers, owners of fleet Flex Fuel Vehicles (FFV)• General Motors Corporation is key partner• Grant money to help defray capital costs and risk

Grants and tax credits

• Up to $20,000 in grants available per E85 hose• 30 % federal tax credit• Grant money, tax incentives, GM marketing

support and government fleet dedication can reduce capital cost and lower investment risk, especially when:– An existing tank can be converted to E85– An additional tank can be added to a new build– A large FFV fleet will agree to fuel at the facility

2-year project cost

• $767,000 total project• $284,000 federal portion (37%)

– One of 13 competitive DOE awards

• $483,000 match (63%)– Sources: Virginia, Maryland, DC, private

First public E85 station in DC

• Georgetown Chevron dedicated June 28 • Mid-Atlantic Petroleum owns station, promises more• VeraSun Energy and General Motors were the key project movers

Energy Secretary Samuel Bodman and GM VP Elizabeth Lowery

Third largest ethanol producer

• Verasun Energy wants a larger East Coast presence

• Verasun plans to build E85 blend terminal in VA

• Terminal is missing piece of infrastructure puzzle

• Ethanol plant also is needed to complete supply chain to East Coast Mid-Atlantic area Verasun founded in Brookings SD

sells E85 under the VE85 brand in 9 states, including VA and PA, and DC

Navy Exchange model in Virginia

Navy Exchange public-private venture will pilot in VirginiaCould make E85 and other alternative fuels available to publicAt conventional convenience store-like locations

E85 now at DSCR

• Defense Supply Center in Richmond offers limited public access to E85

E85 station locator brochure• Back of brochure

lists public and private E85 pumps

• Custom cover for:– GM dealers– GSA fleet FFVs– Virginia fleet FFVs

Ethanol ProductionCurrently 3 companies developing

projects in VA.

–220 mgy corn-based (in 2 phases)–50 mgy hull-less barley based–Speculative plant site being developed

Speculative Site

Site is co-located with a large landfill that has deepwater barge access.

Plans are to create an energy park modeled after an industrial park.

Initial phase will install rail infrastructure and municipal solid waste-to-energy equipment.

Btu’s from waste-to-energy process will be used to generate renewable electricity for co-located utility partner with excess btu’s offered to park tenants.

VA Production Advantages

• Proximity to markets• Significant university level research in next

generation processes• Transportation infrastructure• Available and affordable process energy

(cheap btu’s)

Other

The soon to be released Ten-Year Comprehensive Virginia Energy Plan places a priority on alternative fuels. Ethanol production/use goals are included.

One short-term Plan recommendation is to eliminate Virginia’s dated label laws. There is evidence that retailers in certain conventional gas markets would sell RFG with E10.