1. 1 Biofuels 1991 – 2011: A 20 Year History of Biofuels policy and the impact on the Recreational Marine Industry Jeff R. Wasil BRP U.S Inc.

2. 2 1991 - 2001 Gasoline plus ethanol consumption Fuel Ethanol Consumption % Ethanol in Gasoline Pool J.Wasil Source: Energy Information Administration

3. 3 1995 Clean Air Act 1990 Mandated the use of oxygenates (MTBE) for reformulated fuels in non- attainment areas starting in 1995 MTBE Production J.Wasil

4. 4 1995 - 2001 MTBE Phase-out begins MTBE Production J.Wasil

5. 5 2001 - 2005 J.Wasil

6. 6 2005 Energy Policy Act 2005 (RFS-I) RFS-I Ethanol Quantity J.Wasil

7. 7 2006 In 2006 ethanol production exceeded RFS quantity RFS-I Ethanol Quantity Production exceeded the mandate J.Wasil

8. 8 2007 Energy Independence and Security Act of 2007 (RFS-II) J.Wasil

9. 9 2007 Energy Independence and Security Act of 2007 (RFS-II) RFS-II Biofuels Quantity J.Wasil

10. 10 2007 – 2011 Global Financial Crisis J.Wasil

11. 11 2007 - 2011 Global Financial Crisis % Ethanol in Gasoline Pool = 10% J.Wasil

12. 12 2007 - 2011 Global Financial Crisis % Ethanol in Gasoline Pool = 10% J.Wasil

13. 13 5. Solutions –Solutions: Quickly start consuming more gasoline (ridiculous) Realign the RFS to match the new fuel demand reality (unlikely - does nothing to address the growth of the ethanol industry) Raise the amount of ethanol allowed in gasoline (E15 waiver request granted – source of much debate, will cause issues) Explore other alternative fuels that can better satisfy the RFS volumes without affecting millions of existing engines The US Market was saturated with ethanol in 2010. The industry cannot continue to grow beyond that of exports. J.Wasil

14. 14 Isobutanol Testing Update Jeff R. Wasil BRP U.S Inc.

15. 15 NMMA/ABYC Butanol Study Figure 1. 18’ Mako boat with 175 HP Evinrude Direct Fuel Injection Outboard Figure 2. 24’ SeaDoo Challenger boat with 215 HP Rotax engine Table 2: Engine Specifications Evaluate isobutanol- extended fuel over summer boating season (50 hrs) J.Wasil

16. 16 Argonne / DOE Marine Testing A formal and rigorous test program has been established with Argonne National Laboratory with over sight from the U.S. Department of Energy –Expanded field testing –Laboratory emissions and performance evaluations –Engine durability assessments –Oil tribology investigation Portable Emissions Equipment Installed in Boat Products from several marine engine and boat manufacturers included in the test program J.Wasil

17. 17 Field Emissions Testing Volvo-Penta 5.7 Closed-loop catalyst – Almar Boat 1999 OMC Johnson Conventional Carbureted 2-stroke (AKA, “Old Smokey”) Intruder Boat Indmar 6.0L Closed-loop catalyst – Malibu Ski Boat Boats baseline tested in May, operated for 50 hours on butanol and tested again in September J.Wasil

18. 18 Field Testing Boats accumulated 50 hours operating on B16 fuel Pre and post season emissions evaluated on three fuels on each boat: E0, E10 and B16 No engine runability, startability or durability issues reported during the 50 hour evaluation period. For each boat tested, emissions between E10 and B16 were virtually the same J.Wasil

19. 19 Field Testing Emissions Example Boat #1 Normalized Data Similar emissions between E10 and B16 J.Wasil

20. 20 Lab emissions and durabity Laboratory emissions testing and full-life durability testing 350 Hours on E10 (Control) 350 Hours on B16 (Test) At the end of the testing, the engines will be torn down and inspected J.Wasil

21. 21 Lab engine emissions Example Laboratory Baseline Emissions Data (normalized) Similar emissions between E10 and B16 J.Wasil

22. 22 Durability Barge Testing Engine Undergoing 350 hour durability testing on 16% isobutanol-extended fuel J.Wasil

23. 23 Oil Tribology Oil Tribology refers to the study of friction, wear, lubrication and contact mechanics J.Wasil

24. 24 E15 NREL Report Damaged rod bearing at 235 hours operated on E15. Gasoline (E15) and oil is mixed in two-stroke engine. Impact of E15 on solvency and lubricity of oil is unknown. Damaged rod and bearing from E15 engine Undamaged rod and bearing J.Wasil

25. 25 Oil Tribology Tests Oil Tribology Tests: –Unidirectional sliding (connecting rods, crank) –Reciprocating sliding (Pistons, rings) –Four ball (Bearings) –Three fuels tested E0, E10, B16 at increasing fuel/oil dilution ratios –Yamaha 150HP four stroke engine used to develop oil dilution test methodology J.Wasil

26. 26 Tribology Results Preliminary Oil Tribology Data indicates similar friction and wear with fuel dilution from E0, E10 and B16 J.Wasil

27. 27 Conclusion Conclusion: –Largest and most comprehensive recreational marine study using an advanced biofuel other than ethanol –Cooperation and participation from across the industry –Program is going very well to date – more testing to be conducted, but results so far indicate that butanol is a much better fuel with properties more similar to that of gasoline. –Opportunity to influence National biofuels policy J.Wasil

28. 28 Questions? Thank You J.Wasil