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transcript
E15AnnualMeetingJuly11,2016
Slide#1
EthanolBlendedFuelsProgram
2016E15AnnualMTG
• Execu7veSummary• ProgramIssues/Concerns• 2017Program• ProgramResults2015-2016
E15EthanolBlendedFuelsPgm
2016E15AnnualMTG Slide#2
Anti-TrustGuidelines1.ThepurposeofRFGSAistoconductcompliancesurveys.DiscussionsatRFGSAmee7ngsshouldbelimitedtoissuesthataregermanetothispurpose.2.Thereshouldbenodiscussionofcompe77velysensi7vemaNersatRFGSAmee7ngs.Inpar7cular,thereshouldbenodiscussionofmembercompanies’(a)prices,(b)costs,or(c)confiden7albusinessinforma7on,includingmarke7ngplans.3.Companyrepresenta7vesshouldnotdiscusstheircompany’sstrategiesandplansforcomplyingwithregulatoryrequirements.4.Members/Par7cipantsgenerallymaydiscusswhetherRFGSAshouldsupportoropposeproposalsforgovernmentregula7onorlegisla7on.5.Ifanyonehasaconcernthatapar7culartopicofdiscussionmaypresentanan7trustissue,theyshouldraisetheirconcernwithRFGSA.Mr.LenskicanconsultwithRFGSA’san7trustcounselasneeded.Inaddi7on,membersarealwaysfreetoconsultwiththeirowncompanycounsel.
2016E15AnnualMTG Slide#3
ExecutiveSummary• Program–Mee7ngcomplianceobliga7ons• NonCompliance–S7llHigh,Slightdecrease• 2017AnnualUpdate–Issues/Concerns• Accelera7ngE15FieldGrowth• NISTBlenderPumpProtocol/Update• FieldImplementa7onIssues• MidlevelEthanolBlends–EFF• Ongoing-RFGSAAssistance/Support
2016E15AnnualMTG Slide#4
RFGSurveyAssociationInc.
• RegulatoryProgram/Associa3onObliga3on• Independent,501(c6),Nolobbying–‘1994• Design&Implement,highquality,unbiasedCompliancePgmsto
“assist”FuelsIndustry• Proven“IndustryStandard”,FuelsCompliance• Voluntary,DuesandFeeforServicePgms-TurnkeyPgms&Process• ProgramAgreements/Terms&Condi7ons• Lowcost/1employee/Outsourced• Pgmbudgets-directcosts+shareofOHexp.• AnnualAudit• AllFederal&somestateFuelCompliancePgms
2016E15AnnualMTG Slide#5
• BlendPumpFilterContamina7onStudy• BlenderPumpSamplingStudies
• UpdatedProtocol–PM/RFA/GEendorsed-EPAApproved
• RetailerSupport-Significant• PNCAssistance/Proac7ve• Retailers/States/EPA/PumpManufacturers
• NIST–FormalBlenderPumpProtocol• RFGSA–comments–lowestcost/bestvalue• NISTapproved/published4/16• RFGSA–NISTprotocolcomparison7/2016
RFGSAProgramSupport-Field
2016E15AnnualMTG Slide#6
SurveyProgramStatus
• Accelera7ngE15FieldGrowth– Opera7onalIssues/concern/Support
• 2017AnnualUpdatesdue6/3– 80%Companies/68%(vol)
• RFAGuidancetoitsMembers– RFGSA/GE/RFAMee7ng–6/16/16
• Concerns/NextSteps
• PendingFlexFuelRule(EFF)
2016E15AnnualMTG Slide#7
IndustryConcerns
• RFGSABoardInfluence:– RFGSA–Reg.Obliga7on-Independence–BODnoinfluence
– ProgramAgreements-organiza7onalstructure– RFGSAbylaws-BODApprovesoverallAssocia7onbudget
– RFGSABODpar7cipa7on?• SamplingprotocolEvalua3on:– “One”originalASTMsamplingprotocol-EPAApproved.
– RFGSAblenderpumpstudies–updateProtocol-PM/RFA/GE–Endorsed-EPAApproved-
– PNCs3ll–high,20%improve,butotherissues
2016E15AnnualMTG Slide#8
• Fiduciaryresponsibility:– “Best”costop7on–tomeetRegulatory/EPAprogramrequirements• Register/Fund/Measure/Support/Ac7on
– FullETOHIndustryPar7cipa7on/MeetObliga7on– Etohnon-par7cipant-(1/3)
– RFGSAProvenTurn-KeyProcess–LowCost,ComplianceStandard,EPAApproved
– IndustryCostSharing*• =IndustryComplianceSuccess
IndustryConcerns
*ETOH/OILadop7onofE15/EFFcommerce
2016E15AnnualMTG Slide#9
• Ethanol/E15Commerce“requires”,EPAapprovedSD&MMP(retailsurvey)– AllEthanolProduc7on–E15Eligible/Obligated– NotOp7onal
• RFGSA:– SurveyDesign&Budge7ng– 2017AnnualUpdate–duenow– ProgramObliga7on/Termina7on-8/01
• Discussion
NextSteps
2016E15AnnualMTG Slide#10
2017Program
• ProgramStatus• SurveyDesignPlan• Es7matedBudget/Issues• OtherIssues• Summary
2016E15AnnualMTG Slide#11
2017SurveyDesign
• LocalGeographic– PrimaryfocusonE15areas– AdapttoRapidProgramgrowth(real7me)
• 5000Samples• PNCExpansion– NonregisteredE15sites?– E10non-compliance?
2016E15AnnualMTG Slide#12
2017Est.ProgramCosts
• 2017Budget$1.2M– ApplyProgramCredits-$300k-(S900Kbilled*)– Producer-50M-$5300*
• SiteBlender-$100/loca7on• Blender$500-1500-MinimumDues
• IndustryComplianceSuccess• MeetObliga7ons/Etohnon-par7cipant(1/3)--costs• Annual–paymentissues-RFGSA–willpursue• Allow“ProgramCredits”-Automa7c(Rev/billings)
*-Assumes–currentpar7cipa7onlevels&applyingpgmcredits.
2016E15AnnualMTG Slide#13
RFGSURVEYASSOCIATION–E152016-2017PROJECTED
2016E15AnnualMTG Slide#14
SamplingProtocolUpdate
• RFGSABlenderPumpSamplingStudies– PM/RFA/GE–Endorsed–EPAapproved
• Protocol:– Flush2gallon– Procure0.13gallonsample(HoseResidualonly)– SummerRVPaddi7onalsample– MeetsASTMD5842&D4057
• RFGSAImplemented8/29/15• RFGSAFieldReviewedbyIowaDOA
2016E15AnnualMTG Slide#15
• Improvedsampletestperformance(20%)• SampleNon-compliance-s7llhigh– BlendingAccuracy(76%)– Highblends(>15.4%Etoh)–YTD82%PNCsHigh
• BlenderPumpSamplingStudy–July/2016– Compare-NISTprotocols– PublishData
SamplingProtocolUpdate
2016E15AnnualMTG Slide#16
• SurveyData–Lessonslearned• SuccessFactors
– CorrectEPALabel(Sept16-May31)/Re-label(June1–Sept15){RVP}
– Targetvalues-Passingavg.13.6-13.9%– Mul7pleVariables:Blendstockvaria7on,targetvalues,seasonalcalibra7ons,pumpvalvevaria7on,tankproductvalues
– ControltheVariables–“INCREASEDTARGETVALUES”
• RFGSAcommunicateslessonslearned
SiteBlendingSuccess
2016E15AnnualMTG Slide#17
RFGSAProgramSupport• EPA&RFGSAFuelComplianceleNers• EmailPNCtoProgramPar7cipants– PNCdetails,HelpLinks
• TrainingVigneNes–websitedownloads– ReportAccess,Sampleac7on,Managingusers
• Non-memberPNCresponsesystem• RFGSA–FieldComplianceAssistance/Training
2016E15AnnualMTG Slide#18
• RFGSAfieldsupportonprogramcomplianceissues• Configura7on&labeling• Blenderpumpstudies/Samplingprotocolupdate• PNCmanagement/WebSiteresolu7on• Illinois(2014),Iowa&Minnesota(2015)• 2016Scheduled–Minnesota,MajorRetailers,TBD
RFGSAFieldComplianceWorkshops
2016E15AnnualMTG Slide#19
• EthanolFlexFuel(EFF)• FTCLabeling
OtherIssues
2016E15AnnualMTG Slide#20
EFF–SurveyDesignElements
• E16-E85scope• LeverageE15SamplingProgram-êCosts• Quarterly,RandomsamplingE85loca7ons-(3000),Siteblenders–certainty
• FocusonParentfuels(E10/E85)andavailablemid-levelblends
• Tes7ng-Etoh(vol%),RVP(summer),benzene,sulfur
• PNC’s,surveyfailure2016E15AnnualMTG Slide#21
EFFSurveyParticipation
• Uponrulepublica7on• Requiredtopar7cipateinretailsurvey&RFGSAsurveyregistra7on– EthanolintendedforuseinE85–Producers,Blenders&Siteblenders-mid-levelfuels
• E85retailloca7ons – Requiredtoallowretailsurvey–PNC– SurveyDataaccess–RFGSAregistra7onrequired
2016E15AnnualMTG Slide#22
EFFProcess/Status
• RevisedEPARuleScheduled(04/2016)–Summer(2017)implementa7on
• RFGSAready-1/2017–AnnualUpdate– AnnualUpdateProcess–4/11/16– Required-ProgramAgreement/websiteUpdates
• RuleDelayed(June1)-pending?• TargetImplementa7on-1/2018?
2016E15AnnualMTG Slide#23
EthanolBlendedFuelsAgreement
• Released4/2016• Effec7vewithEFFFinalRulePublica7on– Noprogramchangesun7lpublished
• MinorAgreementChanges• FacilitatesEFFobligatedpar7espar7cipa7on• RFGSAEmailprimarycommunica7on
2016E15AnnualMTG Slide#24
FTCEthanolLabeling
• Effec7ve–July14,2016• E15LabelExemp7on• SizeandColor–similartoE15%label– (3”X2.5”orange/black)
• Mid-levelBlend-exactethanolconcentra7onsorroundtothenearestmul7pleof10– Example,retailerscanlabelfuelsat25and34percentconcentra7onsas30%Ethanol.
• ForHigh-levelBlends-samerulesorlabelthefuelas‘‘51%to83%Ethanol.’’
2016E15AnnualMTG Slide#25
LabelExamples
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2015OperationalHighlights
• RegisteredPar7cipa7on–65+%ethanolproduc7on– SiteBlenders=60companies,208registeredloca7ons– Producer/Blenders=89– Refiner=2– Non_SBE15emergence
• SurveyDesignModifica7ons– UpdatedSamplingProtocolforBlenderPumps– FullSummerSampling
• PNC’s–trendinghigher– Lowresponse
2016E15AnnualMTG Slide#27
• TotalRequested–4722(4092)Analyzed• Emp7es–13.3%,37%(PermClosed)– Refusals–1.3%
• E15EthanolPNC’s–65%(BlendingAccuracy)– 90%ofPNCsblendedhigh
• TotalSitePNC–5.5%• OverallPNC–9.4%vs.8.12%(2014)• PNCResponseRate–low-16%
2015E15EOYResults
2016E15AnnualMTG Slide#28
• TotalRequested–1792,(1656)Analyzed• Emp7es–12.6%,(37%)PermClosed– Refusals–0.6%
• E15EthanolPNC’s–71%(BlendingAccuracy)– 82%ofPNCsblendedhigh
• TotalSitePNC–4.8%• OverallPNC–8.0%vs.9.4%(2015)– PNCresponserate–beNer,low(25%)
2016E15YTDResults
2016E15AnnualMTG Slide#29
Detail-2016YTDE15Results
*AsofMay25,2016
*
2016E15AnnualMTG Slide#30
MAPYTD-2016Participants
2016E15AnnualMTG Slide#31
PNCDiscussion• 76PNCs(excludingrefusals)for2016YTD
– 67Members/9nonMembers– WebsiteResponses–16member/3non-member(25%)
AllPNCssinceProgramStart
2016E15AnnualMTG Slide#32
• 2017AnnualUpdate–Nextsteps• IndustryCommitment/Par7cipa7on/Support• Surveyprogrammeetscomplianceobliga7on• HighPNCratewithlowresponse• Rapidfieldprogramgrowth/Issues• PendingEFFRule• RFGSAongoingprogram/fieldassistance• NextMee3ng–July17,2017,9:00AMET
Closing
2016E15AnnualMTG Slide#33
• Availableonwebsitefordownload:• Logintowebsite–www.rfgsa.org/Memberlogin
• E15icon-Select• Downloadstabtopofpage– 2016E15AnnualMee7ng–7/11/16
Slide#342016E15AnnualMTG
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