Session #103 Fossil Fuel Renaissance: How the Trump Administration is Impacting the Energy Industry Globally and Domestically Susan Lafferty, Eversheds Sutherland (US) LLP (Moderator) Karl Greissinger, Andeavor Josh Kaplan, Statoil US Holdings Inc. Darrin Pfannenstiel, STREAM

Trump and Energy

Areas of Discussion President Trump has been unabashedly “pro-energy”. Work to “undo” Obama efforts began immediately. Where have energy issues moved since Trump came into office and what will happen next? Executive orders and Regulatory Reform. Paris Climate Agreement withdraw. EPA, Congress and renewable fuels. State efforts addressing energy, climate change, environmental protection. Global and U.S.-based company efforts. Q&A

Domestic impact

Efforts by state legislators and regulators The role of state renewable portfolio standards (RPS) policy in the energy industry State efforts to address environmental protections and climate change policy Job growth impact; and Environmental impact Role of the consumer/citizen The impact of deregulated energy as an ancillary means to address energy policy through innovation and consumer choice.

EPA, Congress and Fuels – Reform or Forge Ahead?

Renewable Fuel Standard – An Overview TO MAKE RENEWABLE FUEL Requires refiners and importers of gasoline and diesel to ensure that renewable fuel replaces petroleum-based transportation fuel Renewable fuel producers generate credits (“Renewable Identification Numbers” or “RINs”) RINs separated once biogas dispensed as CNG/LNG as a transportation fuel, and then traded RINs retired by refiners and renewable fuel exporters

RFS Mandates – 2017 Final Rule Total Renewable Fuel – 19.28 billion gallons (D6 + D3, D4, D5, D7 RINs) Advanced Biofuel – 4.28 billion gallons (D5 + D3, D4, D5, D7 RINs) Cellulosic Biofuel – 0.311 billion gallons (D3, D7 RINs) Biomass-Based Diesel – 2.00 billion gallons (D4 RINs)

RFS Mandates – 2022 Statutory Requirement Total Renewable Fuel – 36.0 billion gallons Total Advanced Biofuel – 21.0 billion gallons Cellulosic Biofuel – 16.0 billion gallons Biomass-Based Diesel – At least 1.0 billion gallons

Potential Changes to Fuels and RFS During the Trump Presidency Moving the Point of Obligation – or not! “Reset” volume mandates Regulatory reform Tax credits Biodiesel trade case

RFS and Political Realities

Domestic and international

Paris Climate Agreement

Open letter to the international community and parties to the Paris Agreement from U.S. state, local, and business leaders We, the undersigned mayors, governors, tribal leaders, college and university leaders, businesses, and investors are joining forces for the first time to declare that we will continue to support climate action to meet the Paris Agreement. In December 2015 in Paris, world leaders signed the first global commitment to fight climate change. The landmark agreement succeeded where past attempts failed because it allowed each country to set its own emission reduction targets and adopt its own strategies for reaching them. In addition, nations - inspired by the actions of local and regional governments, along with businesses - came to recognize that fighting climate change brings significant economic and public health benefits. The Trump administration’s announcement undermines a key pillar in the fight against climate change and damages the world’s ability to avoid the most dangerous and costly effects of climate change. Importantly, it is also out of step with what is happening in the United States……

Climate Change Efforts Move Forward Statoil, Total, BP and Shell have invested billions of USD in solar, wind and battery projects either currently in production or slated to come online in the near future. Combination of global greenhouse gas standards and corporate conscience. Significant revenue opportunities and tax incentives. Volvo commitment to have all cars with electric component by 2019. Tesla battery farm. Market growth/cost competitiveness.

Panel Discussion

Questions? Karl Greissinger Managing Counsel, Commercial Andeavor karl.greissinger@andeavor.com Josh Kaplan Lead Counsel Statoil US Holdings Inc. jkapl@statoil.com Susan Lafferty Partner Eversheds Sutherland (US) LLP susanlafferty@eversheds-sutherland.com Darrin Pfannenstiel Sr. Vice President and Associate General Counsel STREAM darrinp@streamenergy.net