2. National Cottonseed Products Association Cottonseed Oil & the Renewable Fuel Standard

3. RFS2 Background/History Renewable Fuels Standard (RFS)  The Energy Independence & Security Act (EISA) of 2007 expanded the RFS to 36 billion gallons beginning in 2009 through 2022.  Creates minimum use requirements for the following classes of renewable fuels: o Conventional Biofuels o Advanced Biofuels - Cellulosic Biofuels - Biomass-Based Diesel (including biodiesel) - Undifferentiated Advanced Biofuels (including biodiesel)

4. VolumeUndifferentiated in billionsConventionalAdvancedCellulosicBiomass-BasedAdvancedTotal Biodiesel Yearof gallonsBiofuels DieselBiofuelsPotential (Biodiesel) 20064.000 20074.700 20088.500 200911.10010.5000.6000.5000.1000.600 201012.95012.0000.9500.1000.6500.2000.850 201113.95012.6001.3500.2500.8000.3001.100 201215.20013.2002.0000.5001.0000.5001.500 201316.55013.8002.7501.000≥1.000*0.7501.750 201418.15014.4003.7501.750≥1.000*1.0002.000 201520.50015.0005.5003.000≥1.000*1.5002.500 201622.25015.0007.2504.250≥1.000*2.0003.000 201724.00015.0009.0005.500≥1.000*2.5003.500 201826.00015.00011.0007.000≥1.000*3.0004.000 201928.00015.00013.0008.500≥1.000*3.5004.500 202030.00015.000 10.500≥1.000*3.5004.500 202133.00015.00018.00013.500≥1.000*3.5004.500 202236.00015.00021.00016.000≥1.000*4.0005.000 * Secretary determines minimum use allocation for "biomass-based diesel" RFS2 Schedule

5. RFS2 Background  Biodiesel must be from renewable biomass and have lifecycle greenhouse gas emissions, including direct and indirect (such as land use change) emissions, at least 50% less than petroleum. December 2007 - EISA passed January 1, 2009 – Date it was supposed to be effective May 2009 - EPA issued Proposed Rule February 2010 – EPA issued Final Rule July 1, 2010 – RFS2 program went into effect

6. RFS2 Background  EPA Final Rule biodiesel eligibility was confined to soybean oil and waste grease  EPA used a range and median score to accommodate uncertainty around indirect land use change  Other feedstocks required to petition EPA for eligibility and undergo a separate Life-Cycle Analysis (LCA)  Canola oil was first additional feedstock to be approved; Canola LCA was 50.5%  Palm oil still pending; initial LCA was 17%

7. Cottonseed Status  NCPA petition submitted to EPA in November 2011  Petition, as required, includes information on: o production, processing, and uses of cottonseed oil, meal, hulls, and linters o supply & demand for cotton & cottonseed products o biodiesel production from cottonseed oil o land use impacts, or lack thereof, of cottonseed biodiesel

8. Cottonseed Status  Recent Action: additional data requested, comments provided on EPA assumptions; EPA modifying models  Next steps: meeting on assumptions, run models, preview results, NODA issued w/ 60 or 90 day comment period, submit comments, final rule.  Enviro Groups: Canola experience and camelina

9. Outlook Timeline for completion: June – EPA completes model runs, shares results, publishes NODA with 60 or 90 day comment period. August/September - comment period closes November/December – Final Rule issued