1. 06/30/2011 v97 DRAFT – DO NOT CITE OR QUOTE For NPC Fuels Study Discussion Only 1 National Petroleum Council Future Transportation Fuels Study Coordinating Subcommittee Conference Call June 30, 2011

2. 06/30/2011 v97 Agenda 2

3. 06/30/2011 v97 CSC Meeting Agenda (6/30) Thursday 11:00 AM to 12:30 PM EST Anti-trust RemindersD. Melin CalendarM. Palfrey Report Outs –Coordinating SubcommitteeL. Capuano –Report Integration SubgroupP. Montana –Demand Task GroupD. Short –Technology Task GroupS. Brand –Supply & Infrastructure Task GroupS. Yosufzai –Engines/VehiclesC. Phillips –HD Engines/VehiclesJ. Hobbeheydar –ElectricB. Reinert –HydrogenT. Boccanfuso New Business – Round RobinAll Review Next Weeks AgendaM. Palfrey Summarize New Action ItemsM. Palfrey

4. 06/30/2011 v97 DRAFT – DO NOT CITE OR QUOTE For NPC Study Discussion Only Antitrust Reminders – NPC Studies Remember the Antitrust Guidelines, and don’t –Coordinate your companies’ plans, prices, outputs –Disclose your company’s non-public information –Use the study process to create competitive harm. Check with counsel before you –Collect or discuss non-public data –Evaluate public data about future prices and costs –Discuss topics about whose legality you’re unsure. Antitrust resources include your lawyer, and: –Mike Young (Anadarko)832-636-7555 –Doug Melin (Marathon)419-421-3265 –Barbara Moran (Caterpillar)309-494-1270 –Jim Haynes (Chevron)925-842-1298 –Courtney Lynch (Chevron)925-842-6474 –Kenly Webster (NPC) 202-898-0780

5. 06/30/2011 v97 Calendar Coordinating Subcommittee Jul 6&8(W,F) Informal Writing Session – Three days (Denver, CO) Jul 7(Th)Report Integration Meeting w/CSC (Denver, CO & WebEx) Sep TBDCSC Meeting – TBD Task Groups and Subgroups Oct 24(W)L1 Dinner (Boston, MA) Oct 25(Th)Technology Peer Review #3 (Boston, MA) Communications and Outreach Jun 14(T)Automotive News Green Car Congress Jul 14(Th)Aspen Inst. Forum on Global Energy, Economy, and Security Aug 1(M)TEP Clean Vehicles Strategy Retreat (Westchester, NY) Dec 7(W)World Petroleum Congress Other Meetings for Information Only Sep 15(Th)NPC Meeting – Washington, DC Wednesdays(9:30 AM)Fuels and Resources CSC Chair Call Thursdays(2:30 PM)Weekly Resource CSC Call 5 Beginning July 14, alternate CSC Conference Calls will be working sessions used to progress framework and preliminary findings

6. 06/30/2011 v97 CSC Meeting Agenda (7/14) Thursday 11:00 AM to 12:30 PM EST Anti-trust RemindersD. Melin CalendarM. Palfrey Working SessionP. Montana New Business – Round RobinAll Review Next Weeks AgendaM. Palfrey Summarize New Action ItemsM. Palfrey

7. 06/30/2011 v97 Secretary Chu’s Request Letter – September 19, 2009 Secretary Chu’s Supplemental Question – April 30, 2010 Study Scope and Work Plan Approval Events NPC Request from Energy Secretary Chu Guiding Principles Scope and Deliverables Fuels Study Leadership Future Transportation Fuels Study Demand Task Group Supply & Infrastructure Task Group Technology Task Group Fuels Study Demographics Guiding Questions DOE Organization of Future Transportation Fuels Participants Key Milestones for NPC Resource and Fuels Studies Roles and Responsibilities:Coordinating Subcommittee Roles and Responsibilities:Task Group Chairs Appendix 7

8. 06/30/2011 v97 8 Secretary Chu’s Request Letter – September 19, 2009

9. 06/30/2011 v97 Secretary Chu’s Supplemental Question – April 30, 2010

10. 06/30/2011 v97 NPC Request from Energy Secretary Chu Study Future Transportation Fuels prospects through 2035/2050 for auto, truck, air, rail and waterborne transport Address fuel demand, supply, infrastructure, and technology Advise on policy options and pathways for integrating new fuels and vehicles into the marketplace, including infrastructure development –Address the transition to an expanded suite of reliable, secure and clean, low-carbon transportation fuels –Evaluate options, risks, and consequences Factors to consider include: –Technological advances –Energy efficiency –Environmental, e.g., impact on carbon, land and water –Economic competitiveness and market dynamics –Cost/benefit tradeoffs –Manufacturing, distribution and infrastructure –Customer expectations and acceptance Address the following question: (Supplemental Letter Apr 30, 2010) –What actions could industry and government take to stimulate the technological advances and market conditions needed to reduce life-cycle greenhouse gas emissions in the US transportation sector by 50 percent by 2050 relative to 2005 levels while enhancing the Nation’s energy security and economic prosperity?

11. 06/30/2011 v97 Guiding Principles Scope then execute –Develop a detailed scope of work for each task group before commencing work Diversity of thought –Identify and involve a broad and diverse set of interests to participate in the study to maximize input and acceptance Promote consensus based leadership Maximize the use of prior studies –Provide a broad review of current research –Conduct new studies only as needed Clarity of assumptions Examine the facts then address policy –Advance basic analytical work to reach consensus on the facts –Assess policy through three lenses Environment Economic Security Communicate and outreach throughout the study Integrate with NPC Resource Development study

12. 06/30/2011 v97 Scope and Deliverables SCOPE Transportation fuel prospects for 2035/2050 for auto, truck, air, rail and waterborne transport –Environment, economic & security Impact Efficiency, emissions, land & water use –Competitiveness & technology leadership –Resource and related infrastructure investment, reliability, and availability Examine technology that will accelerate timelines to alternative fuels Insights on policy, investments, risks and consequences Address what actions industry and government can take to stimulate the technological advances and market conditions needed to reduce life-cycle GHG emissions in the US transportation sector by 50% by 2050 relative to 2005 levels, while enhancing national energy security and economic prosperity. DELIVERABLES Deliver a report to the Secretary of Energy on Future Transportation Fuels prospects through 2035/2050 for auto, truck, air, rail and waterborne transport which –Addresses fuel demand, supply, infrastructure, and technology in the context of U.S. objectives to: Protect the environment Promote economic growth & competitiveness Support energy security Describe accelerated technology pathways to: improved fuel efficiency, reduced environmental impact, and deployment of alternative fuels at scale Deliver insights into potential policy options and investments which industry and government can take to accelerate the acceptance of alternate fuels, engines and vehicles Describe actions industry and government can take to stimulate the technological advances and market conditions needed to reduce life-cycle GHG emissions in the US transportation sector by 50% by 2050 relative to 2005 levels, while enhancing the nation’s energy security and economic prosperity.

13. 06/30/2011 v97 Fuels Study Leadership Study Committee Leadership ChairClarence Cazalot (Marathon) Government CochairDan Poneman (DOE) Alternate Government CochairKristina Johnson (DOE) Demand Vice ChairJim Owens (Caterpillar) Supply & Infrastructure Vice ChairJohn Watson (Chevron) Technology Vice ChairJohn Deutch (MIT) SecretaryMarshall Nichols (NPC) Coordinating Subcommittee ChairLinda Capuano (Marathon) Government CochairSteve Koonin (DOE) Alternate Government CochairDavid Sandalow (DOE) Assistant ChairMike Leister (Marathon) Supply & Infrastructure Task Group ChairShariq Yosufzai (Chevron) Demand Task Group ChairDeanne Short (Caterpillar) Technology Task Group ChairStephen Brand (ConocoPhillips) SecretaryAndy Oliver (NPC) Members Chris W. Erickson (ExxonMobil)William Reinert (Toyota) J. Michael Gallagher (Westport)Matthew C. Rogers (DOE) Mitch Jackson (FedEx)Arthur Rypinski (DOT) Henry C. Kelly (DOE)Paul Sankey (Deutsche Bank) Deron W. Lovaas (NRDC)Chris Sultemeier (Walmart) Jan W. Mares (Resources For the Future)Alan I. Taub (General Motors) Margaret C. Montana (Shell)Todd A. Werpy (Archer Daniels Midland) Richard G. Newell (DOE)

14. 06/30/2011 v97 Leadership ChairD. Short (Caterpillar) Govt. CochairJ. Conti (DOE) Alt. Govt. CochairP. Holtberg (DOE) Asst. ChairC. Sultemeier (Wal-Mart) SecretaryA. Oliver (NPC) Demand Task Group Evaluate demand forecasts and assumptions of passenger and freight mobility demand through 2035/2050. Estimate travel activity and transportation operations efficiency under various conditions to derive fuel demand. Estimate fuel and vehicle mix. Provide insight on policy options that can influence travel activity and fuel consumption. Provide mix of fuel/vehicle systems given performance and cost characteristics.

15. 06/30/2011 v97 Leadership ChairS. Yosufzai (Chevron) Govt. CochairC. Difiglio (DOE) Alt. Govt. Cochair T. White (DOE) Asst. ChairJ. Caggiano (Chevron) Secretary A. Oliver (NPC) Supply & Infrastructure Task Group Evaluate supply forecasts and assumptions for passenger and freight mobility through 2035/2050. Assess technology and technology investments to accelerate delivery and adoption of new fuel/vehicle systems. Analyze infrastructure requirements for fuel types and volumes under various conditions. Describe technology pathways and timelines for introducing various fuel options into the supply chain. Assess environmental impact, energy security and economic competitiveness implications of fuel/vehicle technology options. Analyze various supply situations and provide a framework for developing policy options.

16. 06/30/2011 v97 Leadership ChairS. Brand (ConocoPhillips) Govt. CochairP. Davis (DOE) Govt. Cochair E. Owens (DOE) Asst. ChairM. Stark (Accenture) Secretary A. Oliver (NPC) Technology Task Group Standardize analysis of innovation assumptions across study. Conduct peer review of technical premises, findings and readiness. Provide subject matter expertise that complements Supply and Infrastructure Task Group composition. Analyze and evaluate key premises of innovation development with respect to technical performance, cost, schedule and emissions. Identify and evaluate disruptive technology opportunities that accelerate deployment and commercialization which includes government sponsored research such as ARPA-E.

17. 06/30/2011 v97 Fuels Study Demographics Total Study Participation (Committee, CSC, Task Groups, Subgroups) 296 Participants As of November 2010 DRAFT – DO NOT CITE OR QUOTE For NPC Study Discussion Only

18. 06/30/2011 v97 DRAFT – DO NOT CITE OR QUOTE For NPC Study Discussion Only 18 Guiding Questions 1.Define criteria for 2035 transportation fuels and relative improvement –Environmentless GHG, land and water use –Securityavailable resources, reliable infrastructure –Economiccapital investment, operating costs, achievable at scale, competitive, subsidy requirements 2.Describe 2035 baseline for transportation fuels based upon available studies 3.Identify technological advances, changes in supply, infrastructure and demand that could accelerate the transition to a more environmentally friendly, secure and economically competitive fuel mix 4.Provide insight on government and industry investments which could increase the probability of technological advances 5.Provide insight on the environment impacts such as GHG, water and land use 6.Provide insight on acceptance of these accelerated transportation fuels 7.Consider 2050 – describe the potential 2035 interim states or scenarios which could accelerate progress to a more advanced fuels mix by 2050

19. 06/30/2011 v97 DOE Leadership for NPC Future Transportation Fuels Study

20. 06/30/2011 v97 Timeline & Key Milestones for NPC Resource and Fuels Studies

21. 06/30/2011 v97 21 Develops general approach, scope, organization, milestones, and timetable Recruits participants and provides resources Supervises the work of task groups or individuals Ensures coordination between task groups Monitors progress and milestones Develops and implements outreach and communication plan Addresses policy or directional issues that may arise during task group work. Integrates with North American Resources Study Reports periodically to the study committee regarding status, for guidance, or about issues that need attention Integrates working drafts and sections into a draft final study report for submission to the study committee and the Council Strives for consensus among the diverse interests represented. Weekly teleconferences initially Roles and Responsibilities: Coordinating Subcommittee

22. 06/30/2011 v97 22 Recruit diverse, expert membership for their task group Oversee task group work plans, methodology, and timetables Ensure integration between task group work and the overall study framework Implement Coordinating Subcommittee decisions and guidance in task group Ensure outreach to stakeholders outside the task group Guide development of task group findings and recommendations Roles and Responsibilities: Task Group Chairs