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NPN Magazine Nov/Dec 2013

National Petroleum News (NPN) has been the independent voice of the petroleum industry since 1909 as the opposition to Rockefeller’s Standard Oil. So, motor fuels marketing and retail is not just a sideline for us, it’s our core competency.

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TOP OF THE NEWS Biodiesel Production Tops 1 Billion Gallons N ew EPA statistics show the biodiesel industry has cracked the 1 billion gallon mark for the third consecutive year, with several months of production remaining. "This is a tremendous achievement that is a testament to the hard work of the biodiesel industry and the success of the Renewable Fuel Standard (RFS) as an effective policy for diversifying our fuel supplies," said Anne Steckel, vice president of federal affairs at the National Biodiesel Board. "Biodiesel is proving that advanced biofuels are working now, and we need the Obama Administration and Congress to continue this success." Biodiesel is the first EPA-designated advanced biofuel to reach commercial-scale production nationwide and 1 billion gallons of annual production. With plants in almost every state in the country, the industry has surpassed RFS targets since the program began while using an increasingly diverse n onsumers Like 'Green' Car C Options – As Long as Green Means Money Consumers want to see more alternative-fueled vehicles emerge over the next decade, and are willing to consider purchasing one of these vehicles, according to the results of a new consumer survey conducted by the National Association of Convenience Stores. Three in five (62%) consumers want to see more hybrid-electric vehicles over the next decade, two in five (43%) want to see more battery electric vehicles and one in three want to see more fuel cell (34%), natural gas, (31%) or flex fuel vehicles (30%), according to the NACS survey conducted nationwide in partnership with Penn, Schoen and Berland Associates LLC. Consumers don't simply want to see more alternative-fueled vehicle options — they are quite willing to consider buying them within the decade. Three in four (74%) would consider buying a hybrid electric, and three in five would consider purchasing a flex fuel (62%), fuel cell (58%) or battery electric vehicle (58%). Half of consumers would consider a natural gas powered vehicle (53%). www.npnweb.com  n  NPN Magazine mix of resources such as recycled cooking oil, soybean oil and animal fats. The latest production figures, which cover volumes reported through September, show that the industry produced 140 million gallons in September, for a year-to-date biodiesel total of nearly 1.1 billion gallons. EPA's production volumes are reported under the Biomass-based Diesel category of the RFS. To view the figures. The monthly numbers show a total of nearly 167 million gallons under the Biomass-based Diesel category for the month of September. That total includes some 27 million gallons of renewable diesel, a diesel replacement similar to biodiesel that uses a different technology. For the year, total Biomass-based Diesel production under the RFS stands at more than 1.2 billion gallons, on pace to reach some 1.7 billion gallons by year's end, significantly exceeding the RFS requirement of 1.28 billion gallons. A relatively small 38% of all consumers would consider buying a diesel fuel-powered vehicle over the next decade. However, consumer willingness to consider diesel vehicles has significantly increased since May 2013. Only 31% of consumers who plan to purchase a vehicle in the next two years said that they would consider a diesel vehicle in May, whereas 50% of those consumers today are likely to consider a diesel vehicle. Interestingly, consumers who say they are open to purchasing these "green" vehicles are heavily motivated by an economic incentive. Two in three consumers say the switch to an alternative fuel would be driven primarily by economic enticements, rather than environmentalism. Economic factors such as increased fuel efficiency or tax breaks are more important than environmental factors for those considering diesel, flex fuel, hybrid electric, propane, fuel cell, natural gas and battery electric vehicles (79%, 75%, 73%, 71%, 68%, 67%, 65%, respectively). "This consumer survey reinforces what we have long thought: consumers are willing to embrace new fuels and vehicles but it must make sense for them financially," said NACS Vice President of Government Relations John Eichberger. "Consumers are just as wary as fuels retailers about moving toward future fuels if they don't have financial certainty." Next week, the Fuels Institute, of which NACS is a founding organization, will release "Tomorrow's Vehicles," a report looking at the vehicle market in 2023. Every month, NACS conducts a nationwide survey in partnership with Penn, Schoen and Berland Associates LLC to measure consumer perceptions about gas prices and how they relate to broader economic conditions. Earlier this week, NACS released its latest consumer sentiment survey that found that recent gas price decreases have helped lead to an increase in consumer optimism. For the survey, 804 gas consumers were surveyed from November 5-6, 2013. The margin of error for the entire sample is +/-3.39 at the 95% confidence interval and higher for subgroups. Summary results from this and previous surveys can be found at www. nacsonline.com/gasprices. n ACS Praises New Menu- N Labeling Legislation The National Association of Convenience Stores hailed legislation intronovember/december 2013 5

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