National FlexFuel Vehicle

Awareness Campaign

Presented by the Clean Fuels FoundationTo the American Association of Motor Vehicle Administrators

August 2011

DMV FFV

Driver

Education

Project

The Messenger

Clean Fuels FoundationMission 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

Consensus: FFV Awareness Campaign Endorsements

State NGO Endorsements in Target MarketsAlamo Area Clean Cities CoalitionCentral Texas Clean Cities CoalitionEast Tennessee Clean Fuels CoalitionFlorida Biofuels AssociationIowa Office of Energy IndependenceMaryland Grain Utilization BoardMaryland Clean Cities CoalitionMinnesota Corn Growers AssociationTexas Renewable Energy Industries AssociationVirginia Clean Cities Coalition

2

The Message: The National Renewable Fuel Standard (RFS)

3

“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.

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.

Reaping the Benefits of the RFS

4

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.

Reaping the Benefits of the RFS

5

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.

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

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 AgenciesCollaborate with federal agencies and engage state agencies (e.g., DMV, Agriculture, DOT, EPA) to implement the Campaign’s “State Government Biofuels Roadmap.”

Leverage Stakeholder ResourcesTrain, organize and mobilize NGOs, FFV Dealers, E85 retailers with the Campaign website, media events, and promotions.

7

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

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

The Campaign has many simple, positive, and sustainable news stories…

…with easy Dick and Jane value propositionsthe public can understand

and will believe.

10

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.

Kaizen

Continual Improvement and Adjustments To the FFV CampaignWill Lead to Short Term and Sustainable Results

1.Florida FFV Club pilot projects Support from RFA and UNICA Working with stakeholders

2.Texas E85 Station Openings with Central Texas Clean Cities (Austin) Ethanol Workshop and Ethanol Working Group with Alamo Area Clean Cities (San Antonio)

3.Ohio FFV Awareness Campaign Demonstration project Partnering with Clean Cities on DMV database fuel awareness Campaign

4.Maryland/DC/Virginia Introduced State Biofuels Roadmap Working with Virginia Clean Cities on FFV database and MDEO on USDA/REAP program.

5.Tennessee Collaborate with USDA and East Tennessee Clean Fuels Coalition on the State Government Roadmap,

I 75 Green Corridor, and new E85 station openings

6.Other efforts in FFV Target areas in the South, Southeast and Northeast

11

Tested ,Turnkey, and Ready to Rollout & Replicate

State Fleet and/orInspection Station Decal

State DOT Road Sign

Brochure for POP, Pumps or Info Business Card

Reminder Mirror Hang Tagsfor FFV Dealerships,Fleets & Car Rentals,And Tag & Release

Promotions

Retail POP, Pump Top, Station, FFV Dealer Decal

Customer EngagementOpportunities

PromoteCivic Pride

12

What Will We Do? Endorse, Engage, and Execute

13

Ohio FFV Awareness Campaign Demonstration Project and Model

Point of Purchase EducationEducation/Earned Media

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?

14

Public Education Works. When Stakeholders Work Together !

15

Establish CoreFFV Campaign Stakeholder Team

State Government

State Government

FFV Dealerships

FFV Dealerships

E85Retailers

E85Retailers

NGOStakeholders

NGOStakeholders

DMV/FFV Database, inspection/registration. DOT for Signs. Ag, Energy, Environ., Econ. Development , Meetings

DMV/FFV Database, inspection/registration. DOT for Signs. Ag, Energy, Environ., Econ. Development , Meetings

Sales/Service TrainingBuyer OutreachPublic OutreachFFV Outreach Promotions/Events

Sales/Service TrainingBuyer OutreachPublic OutreachFFV Outreach Promotions/Events

POP Education Info- General Public - FFV Owner - FFV DealerPromotions/Events

POP Education Info- General Public - FFV Owner - FFV DealerPromotions/Events

Press ConferencesMedia ReleasesPrepared ArticlesFeed Social MediaPromotions/Events

Press ConferencesMedia ReleasesPrepared ArticlesFeed Social MediaPromotions/Events

How, Who, What and Why: FFV Awareness Campaign Rollout

Identify and Contact Stakeholder Targets For Endorsement and Engagement

Tool Box of Possible Action Items, Tasks, and Deliverables

Expected Outcomes:Consumer Awareness and Product Education Leading to the Increased use of

Renewable Transportation Fuels to Meet the National Renewable Fuel Standard

This presentationBrief focuses on the DMV Project within the FFV Campaign

These are Examples of the Campaign’s Toolbox Approach: Outreach Options That Can Be Executed Based on

Stakeholder Interest, Funding, Cooperation, and Timing

Action Item Objective(s)

Market/Legislative/Regulatory Assessment

Market Assessment, Identify hurdles, UL, Tank, Blending, ASTM E85 tracking, FlexFuel Pump Funding Support, Incentives

Stakeholder Development Plan Define Core Team of 5-10 Stakeholders

Stakeholder Campaign Endorsement Send FFV AC letters to stakeholder database

Funding Plan Submit Funding Request to stakeholders

Develop Educational Materials Design/Print/Self Print

Campaign Launch Event Press Conference

Develop Website Create content/link to endorsers/interconnect stakeholders

State Government Campaign “Biofuels Roadmap” 

Solicit Support from the Governor Letter to request cooperation and support/press conference?

Department of Agriculture Data support, outreach, intra agency support

State Energy Office Information regarding funding (DOE SEP/ARRA )

Department of Motor Vehicles  

FFV Registration Database Define ownership, use, and generate outreach activities

Vehicle Registration Mailings Define time, cost, agreement opportunities

Vehicle Inspection POP education, FFV decals, integrate FFV ID

Driver Education Test Energy awareness, FFV awareness, fuel choice

A Well Designed Plan with a Matrix of Outreach Tools

16

State Biofuels Roadmap & FFV Awareness Campaign Tool Box (continued)

Action Item Objective

DMV On-site POP educational materials Provide information, FFV decals, integrate FFV Awareness

Economic Development Office Request economic stimulation data, ranking, and state priorities

Department of Transportation Can they track E85 sales? Support highway refueling signage?

Office of Environmental Protection Location of USTs, ozone attainment, station configuration

Department of Health Air toxics and air quality education

Fire Marshall Define hurdles obstacles, dispenser database

Agency Web site links Assessment of FFV/E85/RFS information

Commercial/Stakeholder Campaign 

Notify Clean Cities Coordinators Define existing outreach plan

Identify and enroll local FFVAC champion State point of contact

Auto/Oil/Stakeholder Calendar of Events Define public events for collaboration/piggyback

Gasoline Retailer Outreach Develop POC list and contact

Gasoline Retailer Consumer Education POP information distribution

Gasoline Retailer Workshop City/Regional

Gasoline Retailer Promotion E85 give away promotion/Website link

FFV Dealer Car Shows City/Regional/Car Show

FFV New & Used Dealer Workshop City/Regional/Car Show

FFV Dealer Consumer Education Showroom materials, training, Clean Energy Fair

FFV Dealer/Gasoline Retailer Promotion FFV VIN Number Lotto/Fuel Giveaway

17

Examples of Outreach Strategy & Tools…

Campaign Tasks & Performance Metrics

Phase 1: Awareness

1.Develop core stakeholder team communication network, measured by number of endorsements/supporting organizations.

2.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.

3.Provide event coordination, execution, and support, measured by number of events (e.g., press conference, workshops, public venues, etc.) created, supported, and/or attended.

4.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

Performance Metrics

Phase 2: Utilization

1.Increase the sale of E85 and higher blends of ethanol.

Track/validate E85 sales and share data.

2.Increase the deployment of FlexFuel Pumps.

Monitor pump growth with the DOE and industry stakeholder websites.

19

Expected Outcomes

Find Synergy, Promote Collaboration,and Leverage Resources

1.Leverage this communication and outreach tool designed for the public, government, public, media, and entry level stakeholders (FFV/E85 Dealers/NGOs).

2.Sustain this turnkey driver education campaign so Clean Cities coordinators and other local stakeholders can leverage this resource to generate public awareness .

3.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?

20

LimitedResources

Performance

Tim

e Cost

Expected Outcomes (continued)

4. 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.

5. 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

What Markets Fit the Model & What Can You Do?

22

Why DMVs Should Support the National FFV Driver Education Project

To Meet Public Safety, Driver Education, andNew 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?

23

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 3rdgeneration 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% ofits 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?

24

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.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.

What Markets Fit the Model & What Can You Do?

25

Determining Target Markets

No Activity or no data Strong Weak Problem

FundingPlan

DOE/SEPFunds

E85Pumps FFV

Population Eth. Prod. Gas SalesGBCGov+

OzoneNon-Att.

Clean City

Program

OtherFactor

OhioAg Sector

NebraskaAg Sector

IowaAg Sector

MD/VA/DCNationalPolitics

Texas2nd Gen.

Florida2nd Gen.

Georgia2nd Gen.

N. Carolina2nd Gen.

IndianaNGO Sector

WisconsinNGO Sector

Tennessee2nd Gen.

MichiganFFV Makers

KansasIndustry

ArizonaFunding?

CaliforniaFunding?

State FFV Awareness Campaign: State Target Priority Ranking -- Jan 2011

What Markets Fit the Model & What Can You Do?

26

FFV Awareness Campaign Priority Target Markets

Ranking is Based on the Number of FFVs, Gasoline Demand, Existing FlexFuel Pumps, and Potential Stakeholder Support

Primary Markets1.Ohio: Cleveland, Columbus, Cincinnati, Dayton, Toledo2.MD/VA/DC: MSA + VA: Richmond and Norfolk3.Texas: Dallas, Houston, San Antonio4.Georgia: Atlanta5.Florida: Jacksonville, Orlando, Tampa/St. Petersburg, Ft. Lauderdale/Miami6.Nebraska: Omaha7.Kansas: Kansas City8.Missouri: St. Louis9.Michigan: Detroit10.Indiana: Indianapolis (ALA MW)

Secondary Markets1.Minnesota: Minneapolis (ALA UMW)2.Illinois: Chicago (ALA UMW)3.Oklahoma: Tulsa4.Wisconsin: Milwaukee (ALA UMW)5.North Carolina: Charlotte6.Kentucky: Louisville7.Louisiana: Lafayette, Baton Rouge, New Orleans8.Northeast Corridor: [MD/DC/VA], Philadelphia, New York, Boston, Providence (Clean Cities Support)

What Markets Fit the Model & What Can You Do?

27

Where can we go and what is [the-art-of-the] possible?

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.

The text below is from the DOT/NHTSA Website. The black text is actual language, the underlined text illustrates the precedent for FFV awareness and 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?

28

Burl Haigwood, Director of Program Development, Clean Fuels FoundationProject Manager, National FFV Awareness Campaign

202.441.2400, Burl.Haigwood@cleanfuelsdc.orgDoug Durante, Director, Clean Fuels Foundation, cfdcinc@aol.com

Questions, Follow up, and Feedback are Always Appreciated

How Can We Get Started?

1.Consider using the National FFV Awareness Campaign as a tool to support your state’s biofuel/ethanol/E85 infrastructure/alternative fuel and vehicle efforts.

2.Place the FFV Awareness Campaign banner on your website and we will link yours to ours.

3.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.