MEDA 2009 Fall Conference Energy Alternatives

1. MEDA 2009 Fall ConferenceEnergy Alternatives presented by Ted Dodge National Carbon Offset Coalition (NCOC)

2. NCOC Background • Board consists of seven Montana-based non-profit resource conservation organizations, and office is based in Butte, Montana. • NCOC is an Aggregating Member of the Chicago Climate Exchange. Voluntary market. • Member of the Big Sky DOE Carbon Sequestration Partnership. NCOC – Visit our website: www.ncoc.us – 406-491-4471

3. NCOC Organization Chicago Climate Exchange Affiliates/ Subaggregators NCOC Sellers Buyers Tribal Governments Landowners State Lands Coal Power Plants Cement Plants

4. What is Carbon Sequestration?Capture and storage of CO2 and other Greenhouse Gases that would otherwise be emitted to the atmosphere • Capture can occur: • at the point of emission • when absorbed from air Storage locations include: • underground reservoirs • dissolved in deep oceans • converted to solid material • trees, grasses, soils, or algae NCOC – Visit our website: www.ncoc.us – 406-491-4471

5. Benefits of Terrestrial Offsets

6. What Terrestrial Practices Sequester Carbon? No-till or reduced tillage Winter cover crops Increased crop productivity Intensified crop rotations (double crop) Conservation buffers Tree planting Grazing lands initiative Restoration of degraded soils Any practices that improve soil organic carbon NCOC – Visit our website: www.ncoc.us – 406-491-4471

7. Chicago Climate Exchange - CCX • North America’s only greenhouse gas (GHG) trading system. • Launched in 2001. Modern web-based trading floor. • Only Members can buy and sell on CCX. • Trading launched in 2003; Currently trading emissions dated 2003 through 2010. • Trading rules managed by expert committees drawn from CCX members. • Info at www.chicagoclimatexchange.com

8. CCX Members Aerospace & Equipment Rolls-Royce United Technologies Automotive Ford Motor Company Beverage Manufacturing New Belgium Brewing Company Chemicals Dow Corning DuPont Rhodia Energy BrasilLtda Coal Mining Jim Walter Resources, Inc. PinnOak Resources LLC Commercial Interiors Knoll, Inc. Steelcase Inc. Counties King County, Washington Miami-Dade County, Florida Sacramento County, California Diversified Manufacturing Eastman Kodak Company Electric Power Generation AGL Hydro Partnership Allegheny Energy Inc. American Electric Power American Municipal Power-Ohio Associated Electric Cooperative, Inc. Central Vermont Public Service DTE Energy Inc Duquesne Light Company Green Mountain Power Manitoba Hydro NRG Power Marketing Inc. Puget Sound Energy, Inc. Reliant Energy Services Inc. TECO Energy, Inc. Electronics Motorola, Inc. Sony Electronics Inc. Square D/Schneider Electric N.A. Environmental Services Atlantic County Utilities Authority Lancaster County Solid Waste Management Authority Veolia Environmental Services North America Corp Wasatch Integrated Waste Management Authority Waste Management,  Inc. Ethanol Production Corn Plus LLP Financial Institutions Bank of America Corporation Food and Agricultural Products & Services  Agrium U.S. Inc. Cargill, Incorporated Food Processing Meister Cheese Co. LLC Premium Standard Farms Smithfield Foods, Inc. Forest Products Abitibi-Consolidated AracruzCelulose S.A. CenibraNipoBrasiliera S.A. International Paper Klabin S.A. Masisa S.A. MeadWestvaco Corp. Neenah Paper Incorporated Stora Enso North America SuzanoPapel E Celulose SA Tembec Industries Inc. Temple-Inland Inc Manufacturing Bayer Corporation Interface, Inc. Ozinga Bros., Inc. Smurfit-Stone Municipalities City of Aspen City of Berkeley City of Boulder City of Chicago City of Oakland City of Melbourne, Australia City of Portland Petrochemicals PetroflexIndustria e Comercio SA Pharmaceuticals Baxter International,  Inc. Recreation Aspen Skiing Company Retail Safeway, Inc. States State of Illinois State of New Mexico Steam Heat Concord Steam Corporation Steel Roanoke Electric Steel Corp. Technology Freescale Semiconductor IBM Intel Corporation STMicroelectronics Transportation Amtrak San Joaquin Regional Rail Commission University Hadlow College Michigan State University University of Idaho University of Iowa University of Minnesota University of Oklahoma Tufts University

9. Carbon Credits • The quantity of carbon offered in a trade • Carbon credits equal to one metric ton of atmospheric CO2 reduced or avoided from an agreed baseline amount. • One ton of carbon equals 3.67 tons of co2 equivalent (atmospheric CO2).

10. CCX Portfolios These are equal to 100 tons CO2e All eligible projects will be marketed to the above pools

11. Current Situation

15. Forestry Projects Afforestation Reforestation Fire Rehab Management of Existing Stands Long-lived Wood Products Urban Forestry Tree Farm Associations and private forestry companies will act as sub-aggregators for NCOC

16. Contracting Process • Application; • Contracting (5-years soil; 15-years forestry)plus eligible look back years; • Inclusion into Pool; • Third Party Verification; • Registration on Exchange; and • Trade completed(current year/any look back years)

17. Where we are headed? • Climate change legislation at the national level establishing a mandatory cap/trade • Will Ag/forestry offsets be in program? • What will be the standards/protocols? • USDA Office of Environmental Credit Services • Encourage western states to support terrestrial offsets

18. Conclusions • CCX pilot market is now available to farm, ranch, and forest owners • Energy efficiency green building • Mandated market is pending (protocols/standards are subject to change) • Existing voluntary marketplace will need to morph into mandated market • Market-based conservation planning

19. Thank You! National Carbon Offset Coalition 305 W. Mercury, Room 408 Butte, MT 59701 Office: (406) 723-6262 Cell: (406) 491-4471 Website: www.ncoc.us