SOUTHERN BIOPRODUCTS CONFERENCE

1. SOUTHERN BIOPRODUCTS CONFERENCE Presented by: Pete Moss Vice President Frazier, Barnes & Associates

2. Biodiesel EmissionBenefits

3. SOUTHERN BIOPRODUCTS CONFERENCE U.S. Biodiesel Manufacturing Locations According to the National Biodiesel Board and Bioenergy Program Registrants

4. SOUTHERN BIOPRODUCTS CONFERENCE Small Scale Biodiesel Manufacturing Locations in the Southeast (Less than 1 Million Gallons) East Tennessee Decaturville Meridian

5. SOUTHERN BIOPRODUCTS CONFERENCE Biodiesel Projects Under Development In the Southeast

6. SOUTHERN BIOPRODUCTS CONFERENCE Soybean Processing Plants In the Southeast Owensboro Raleigh Fayetteville Kershaw Gainesville Guntersville Marks Stuttgart Estill Valdosta Destrehan Existing

7. SOUTHERN BIOPRODUCTS CONFERENCE U.S. Ethanol Manufacturing Locations

8. SOUTHERN BIOPRODUCTS CONFERENCE U.S. Ethanol Projects Under Development

9. SOUTHERN BIOPRODUCTS CONFERENCE Southeastern Region Ethanol Manufacturing Locations Louisville Hopkinsville Loudon New Albany Greenwood Lake Providence Vicksburg Existing Under development

10. SOUTHERN BIOPRODUCTS CONFERENCE Pending Laws FL SB 1316 – Adds ‘biomass’ to law encouraging renewable electricity production. KY SB 3 – Producer tax credit of $1/gallon; Distributor credit of $.02; Retailer of $.01. TN – HB 3125 Sales tax exemption on AFVs – diesel vehicles qualify under the wording. SB 2438 – Same as above. AL SB 6 – Ethanol Producers Fund of $.30/gallon for 1st 12.5 mg, $.10 for second 12.5 mg.

11. SOUTHERN BIOPRODUCTS CONFERENCE Existing Laws

12. SOUTHERN BIOPRODUCTS CONFERENCE Texas The law establishes two funds, one each for biodiesel and ethanol. Producers report monthly the gallons produced, imported or blended and pay a 3.2 cents per gallon (cpg) tax on production into a fund. The state matches by a multiplier of 5.25 cpg. No less often than quarterly, the state issues grants of 20 cpg back to the plants. The net grant would equal 16.8 cpg. The producer is entitled to receive the 20 cents for 10 years after the beginning of production. Biodiesel must meet ASTM specifications (PS 121) and is feedstock neutral. Grants are limited to 18 million gallons per year per producer per registered plant ($3.6m). Grants may be lowered if the fund is insufficient for that fiscal year.

13. SOUTHERN BIOPRODUCTS CONFERENCE Arkansas The act provides an income tax credit for “facilities and equipment” for biodiesel suppliers (wholesale or retailers that sell in bulk) of 5% of the cost of facilities and equipment. It also allows a grant up to 10 cpg administered by the Alternative Fuels Commission to qualified producers (located within Arkansas). Grants are limited to the first 5 million gallons of biodiesel produced annually, not to exceed 5 years. Biodiesel is defined by the ASTM specification.

14. SOUTHERN BIOPRODUCTS CONFERENCE Mississippi The legislation provides incentives of 20 cpg for Ethanol production up to 30 mg. Biodiesel legislation is pending.

15. SOUTHERN BIOPRODUCTS CONFERENCE Federal Incentive Programs Bioenergy Program: APP – Additional Production Payment *Last Year’s Payment - $.87 per Gallon BPP – Base Production Payment *Roughly half of the APP EPAct EO 13149 Expires 2006 Existing

16. SOUTHERN BIOPRODUCTS CONFERENCE Energy Bill: Biodiesel Subsidy *Funding from the General Treasury *$1.00 Per Gallon for “Agri-Biodiesel” *$.50 Per Gallon for “Non-Agri” *Renewable Fuel Standard Transportation Bill: *Same as above but no RFS Pending