National Carbon Offset Coalition, Inc.

Carbon Credits . . . A Unique Market Based Approach Tribes Involvement in Carbon Sequestration

NCOC – Visit our website: www.ncoc.us – 406-491-4471

National Carbon Offset Coalition

• • • • • Seven non-profit resource conservation organizations, Based in Butte, Montana.

The program offers corporations a cost-effective way to achieve their carbon dioxide emission reduction goals.

Carbon credit transfer is a new marketable commodity that can provide landowners and communities with a new potential source of revenue.

Funded by both the State of Montana and the Department of Energy

NCOC – Visit our website: www.ncoc.us – 406-491-4471

Grant funds provide . . .

the ability to test all components of the proposed trading infrastructure which include: •Handbook functionality •Planning forms access and use •Listing agreements and contracts functionality for various landowner categories, market concerns, and federal and state carbon registries.

•Portfolio functionality, maintenance and marketing issues •Implementation timelines and staff responsibilities •Project measuring, monitoring, verification implementation and reporting criteria •Financial feasibility and cost breakout of trading infrastructure components •Final design of proposed portfolio auditing and verification processes

NCOC – Visit our website: www.ncoc.us – 406-491-4471

What needs to be Accomplished

During the next three years, NCOC and the DOE Partnership need to acquire: • Two 12,500 ton portfolios (tribal & private landowners).

• Carbon sequestration strategy for Sempra and 25,000 metric tons of credits.

NCOC – Visit our website: www.ncoc.us – 406-491-4471

NCOC Organizational Chart

NCOC Chicago Climate Exchange NatSource Sellers Buyers State Lands Corporations Tribes Land owners Coal Power Plants Cement Plants

So, what is the science behind all of this?

Major Greenhouse Gases (GHG’s)

Carbon Dioxide (CO 2 )

NCOC’s principal Green House Gas focus

Methane (CH 4 ) Nitrous Oxide (N 2 O)

NCOC – Visit our website: www.ncoc.us – 406-491-4471

What is Carbon Sequestration?

Capture and storage of CO 2 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

NCOC’s Carbon Credit

The quantity of carbon offered in a trade; for example, the amount claimed to be sequestered in soil or trees. Carbon sequestration units (CSU’s). Equal to one metric ton of atmospheric CO 2 reduced or avoided from an agreed baseline amount. To create a CSU, the amount of CO 2 must be measured, verified, and registered. One ton of carbon contains 3.67 tons of co 2 equivalent (atmospheric CO 2 ).

NCOC – Visit our website: www.ncoc.us – 406-491-4471

Needed Land Use Categories

• Reforestation: Lands previously forested, but recent natural and/or artificial reforestation efforts have failed • Afforestation: Establishing trees on sites not naturally forested but capable of supporting forest stands • Agroforestry: Field and farmstead windbreaks, riparian forest buffers, hybrid poplar plantations • Fire Rehabilitation: Forested lands destroyed by wildfire.

• Cropland: Minimum till to no-till and reseeding of grass on marginal croplands • The cropland pilot will have three key inter-related dimensions, resulting in geographically constrained field tests in north central Montana and broad market exploration activity across the four-state region

NCOC – Visit our website: www.ncoc.us – 406-491-4471

Sequestration Potential Big Sky Region

Practice Available Area (000 Ac.) Potential Area (1000 Ac.) Afforestation Forest Management Field Windbreaks Riparian Forests Biomass for Energy Total

34,000 10,900 594 1,500 10,500 3,400 6,200 300 750 330

Potential Mitigation (TgCO 2 e/yr)

4 – 6 1.5 – 2 1.0 – 1.5

2 – 2.5

0.25 – 3 9 – 15

NCOC – Visit our website: www.ncoc.us – 406-491-4471

NCOC Combines

. . .

Science Policy

NCOC – Visit our website: www.ncoc.us – 406-491-4471

Market

Science . . .

Member of the Big Sky Regional DOE Partnership which includes universities, national research laboratories Designing standards & protocols to meet emerging markets and 1605b requirements

NCOC – Visit our website: www.ncoc.us – 406-491-4471

Policy . . .

Tracking the rules and guidelines for 1605b registry Providing public comment Developing climate trust Reviewing state registries Developed standards/protocols Updating USDA COMET Model

NCOC – Visit our website: www.ncoc.us – 406-491-4471

Market . . .

Working with emerging markets (Chicago Climate Exchange & Natsource) Direct trades through buyers Working with landowners, Tribal governments, & others to design contracts

NCOC – Visit our website: www.ncoc.us – 406-491-4471

Project Requirements

Landowner desire Initial Proposal for Project Listing Agreement with NCOC NCOC Builds portfolio/seeks buyer Buyer makes offer NCOC and landowner accept offer Project Plan completed Contract completed

NCOC – Visit our website: www.ncoc.us – 406-491-4471

NCOC Website

• • • NCOC Carbon Sequestration Handbook NCOC Portfolio Standards Initial Proposals 1. Conservation Tillage 2. Biomass Fuel Offsets 3. Forest Management 4. Afforestation 5. Agroforestry 6. Grass Planting 7. Grazing Management 8. Small Forest Projects

NCOC – Visit our website: www.ncoc.us – 406-491-4471

Current Tribal Efforts

• Nez Perce Tribe – 5200 metric tons entered onto CCX via NCOC Tribal Portfolio • Fort Belknap – Reforestation Proposal submitted to the Oregon Climate Trust • Navajo – Afforestation Initial Proposal is underdevelopment

NCOC – Visit our website: www.ncoc.us – 406-491-4471

Overall Benefits to Buyers

• Industry may find that purchasing CSU’s as an offset for their emissions is an economical way to meet their emission reduction needs. • Enhances the health and sustainability of the ecosystem.

• Offers participating corporations a cost effective way to produce enough CSU’s to achieve their carbon dioxide emission reduction goals. • NCOC provides the buyer with a Certificate of Assurance containing final measurements, conditions, commitments, etc. meeting buyer demands. • Companies can take voluntary steps now to establish their own emissions credit programs for greenhouse gases. By doing so, they can demonstrate their commitment to reducing carbon dioxide emissions and best position themselves to have their reductions recognized whenever a formalized program is introduced.

• Creates positive public relations.

NCOC – Visit our website: www.ncoc.us – 406-491-4471

NCOC’s Benefits to Landowners

• • • • Landowners gain the practical experience in producing carbon credits for future markets.

Flexible contractual agreements — ranging from five (5) years to long-term 80+ years.

Carbon sequestration credits offer landowners a new “potential” source of revenue.

Enhances the health and sustainability of the ecosystem.

NCOC – Visit our website: www.ncoc.us – 406-491-4471

For more information contact:

NATIONAL CARBON OFFSET COALITION

305 W. Mercury, Room 408 Butte, Montana 59701 (406) 723-NCOC (6262) Email: [email protected]

www.ncoc.us