Ethanol Growth and Rail Safety

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1 Ethanol Growth and Rail Safety Committee for a Study of Domestic Transportation of Petroleum, Natural Gas, and Ethanol February 4, 2016 Washington, DC Kelly Davis Director of Regulatory Affairs Renewable Fuels Association

2 About the Renewable Fuels Association Founded in 1981 National Trade Association representing U.S. ethanol producers promoting policy, regulations, research and development for the industry Offices in Washington D.C. and St. Louis, Missouri Leader in legislative efforts of industry Encouraging safe practices throughout the industry Trusted source of scientific and technical expertise to support decision-making Mission: Drive expanded demand for American-made renewable fuels and bio-products worldwide

3 Today s U.S. Ethanol Industry 14.7 billion gallons produced in 2015 Annual U.S. Ethanol Production Source: DOE/EIA * 2015 projection

4 211 Plants in 29 States

5 Ethanol Industry Trends Renewable Fuels Standard requires the production and use of incremental increases in renewable fuels Several cellulosic ethanol facilities operating or in startup Most all gasoline in the U.S. contains 10% ethanol New blends being offered: E15, Ethanol Flex Fuels (E16-E83) Exports

6 Fuel Ethanol Transportation Modes Truck Transportation; MC306/ DOT406 Transport Trucks Barge Transportation; Mississippi, Ohio, Missouri, Illinois, Columbia Rivers and intercoastal barges Some pipeline interest Ocean-going tanker vessels for exports Rail Transportation

DOT-111A Railcar Used Safely for Ethanol for Over 30 Years 70% of ethanol travels to the marketplace by rail Ethanol has 29,000 of these cars in service currently On average, 85% of ethanol

7 DOT-111A Railcar Used Safely for Ethanol for Over 30 Years 70% of ethanol travels to the marketplace by rail Ethanol has 29,000 of these cars in service currently On average, 85% of ethanol rail fleet is less than 9 years old Ethanol producers ship 320, ,000 cars annually RFA participates in the AAR Tank Car Committee continuously looking for improvements to tank car design

8 Ethanol Growth on Rail Rail Tankcar Loads Ethanol vs. Crude Oil Ethanol Crude Oil Source: AAR / BOE

9 RFA Safety Initiatives RFA Plant and Employee Safety Committee Ethanol Emergency Response Coalition TRANSCAER Industry Partnerships

Non-Accidental Releases Program 120 100 80 60 40 20 0 NARS Alcohols, NOS 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Top Specific Causes Manway;

10 Non-Accidental Releases Program NARS Alcohols, NOS Top Specific Causes Manway; loose bolts, gasket deteriorated, misaligned or missing BOV; cap loose, valve stem loose Liquid line; threaded valve loose VRV; cap O-ring deteriorated or misaligned

RFA Safety Resource: How to Properly Close a Tank Car Manway RFA s Guidelines for Hinged and Bolted Manway Assembly Includes inspection, gasket selection, closing techniques, and

11 RFA Safety Resource: How to Properly Close a Tank Car Manway RFA s Guidelines for Hinged and Bolted Manway Assembly Includes inspection, gasket selection, closing techniques, and proper tools selection to ensure the manway is closed in a tight, secure manner Available in poster or brochure form on our website Hard copies are available via safety@ethanolrfa.org

12 Non-Accidental Releases Program NARI (per thousand shipments) NARI Alcohols, NOS Class 3 Flammables

13 Ethanol Properties Highly refined quality product that must meet a strict ASTM Standard Specification (D4806) Clear flammable liquid Initial Boiling Point (IBP) of Ethanol F Flash Point of Ethanol (E100) 57 F Flash Point of Denatured Fuel Ethanol (E98) 20 F Always classified properly as PGII Vapor pressure of Denatured Fuel Ethanol is 3 psi Recently reconfirmed physical and chemical properties

14 RFA Safety Committee Efforts Rail Transport Best Practices Rail safety specific information Ethanol Shipping Name Bulletin Facility Compliance Guides Guidelines for Release Prevention

Mixed Hazmat Document procedures, resources used Capture best

15 Unit Train Derailment Case Study FRA Grant to study emergency response at unit train derailments 2- Crude Oil, 2-Ethanol, 1- Mixed Hazmat Document procedures, resources used Capture best practices, lessons learned IAFC, BNSF, UP are Subject Matter Experts

16 Public and Private Industry coming together to provide much needed emergency response information Founding Members: RFA, ILTA, IAFC, Ansul, Williams Fire & Hazard Control, and Industrial Fire World Ethanol Emergency Response information available:

Ethanol Emergency Response Updated version available (May 2014) of the The Training Guide to Ethanol Emergency Response, Currently working on a TRANSCAER branded version to officially be part of the

17 Ethanol Emergency Response Updated version available (May 2014) of the The Training Guide to Ethanol Emergency Response, Currently working on a TRANSCAER branded version to officially be part of the National Training Tour The classroom portion will be filmed and available on online and DVD along with a railcar walk around video Expecting ~40,000 of the Training Guide to Ethanol Emergency Response packages to be distributed (donation from NS and Grant funding from FRA /TRANSCAER Grant) Expect updated version to be available Spring 2016

18 Ethanol Safety Program includes: Power points Instructor/ Participant Training Manuals Videos Foam performance DOT resources PHSMA guidelines Training toolbox Truck fire; May 14, 2007 Baltimore, MD

19 Safety Seminars are free to attend Since December 2010, RFA has conducted 165 seminars spanning 29 states 2015 locations; Nebraska, Illinois, North Dakota and Oregon Goal is to bring our training to all 50 states by the end of 2016 Ethanol Safety Seminars

to all attendees Great opportunity for emergency responders,

20 Ethanol Safety Seminars Over 4,800 emergency responders trained Evaluations are collected Certificates are handed out to all attendees Great opportunity for emergency responders, fire departments, LEPCs, and other interested parties in the community

Train the Trainer Program Development New

21 Train the Trainer Program Development New program developed Partnered with IAFC Aimed at industry, pulling together emergency response/ ethanol expertise Offered both seminar/ webinars 350 professional individuals above the technical level of training have been trained

22 Transportation Community Awareness and Emergency Response RFA is a national sponsor National voluntary group that assists communities to prepare and respond to a hazardous material incident This group is widely successful in offering free training and other educational resources RFA received the TRANSCAER National Achievement Award for 2012, 2013 and 2014 RFA Staff members received individual awards also

23 HM251 Impacts to Ethanol Final Rule published May 1, 2015 Enhanced Tank Car Standards and Operational Controls for High Hazard Flammable Trains High Hazard Flammable Train (HHFT): continuous block of 20 or more cars or 35 or more cars dispersed through out the train of Class 3, Flammable Liquids Affects most all tank cars transporting ethanol Shippers tank car fleet is not segregated between cars in unit train service versus the single manifest cars Prioritization of crude oil was listened to and understood by the regulators Retrofits deadline of May 1, 2023 to upgrade the ethanol fleet giving a five year separation from the crude oil timeline for compliance

24 RFA Resources Renewable Fuels Association: EERC: TRANSCAER: RFA Safety

25 Thank You for Listening

1. Ethanol Shipments by Rail Have Had an Enviable Safety Record

1. Ethanol Shipments by Rail Have Had an Enviable Safety Record Rail Safety Forum: Transportation of Crude Oil and Ethanol National Transportation Safety Board Testimony of Bob Dinneen, President of the Renewable Fuels Association April 23, 2014 Good afternoon, My