PRESENTATION ON U.S.-RUSSIA ENERGY WORKING GROUP by Paul Tumminia Moscow, November 17, 2010

U.S.-Russia Energy Working Group Snapshot of EWG Activities Memorandum of Understanding signed between DOE and the Ministry of Energy, October 2009 First Plenary Session of the Energy Working Group, co- chaired by Minister Shmatko and Secretary Chu, July 2010 All 3 Sub Groups have met and are actively pursuing action plans Measured Progress

U.S.-Russia Energy Working Group Energy Efficiency Sub Group Joint Action Plan agreed upon in May Areas of interest Co-chairs agree to 4 priority action plan items

U.S.-Russia Energy Working Group Four Priority Action Plan Areas (Energy Efficiency Sub Group) Smart Grid Pilot Project Federal Energy Management Program Coal Bed Methane Finance 4

U.S.-Russia Energy Working Group Smart Grid Pilot Project City-to-City Pilot Project linking U.S. and Russian city each implementing an upgrade to municipal grid Phase I: DOE and MRSK are in the process of choosing candidate cities implementing compatible projects Cities leaders will be able to share experiential data and best practices 5

U.S.-Russia Energy Working Group Smart Grid Project: Outcomes Phase II: Conduct energy assessment of each candidate city Phase III-Implementation Phase – DOE will work with U.S. trade agencies to access financing for project implementation Model for future projects across Russia 6

U.S.-Russia Energy Working Group Energy Management Program Framework Phase I- DOE and Russian Energy Agency review energy efficiency action plans developed by regional governments as mandated by new Energy Efficiency legislation Phase II- coordinate various workshops with regional and federal officials for Training Designing specific pilot project (feasibility study) 7

U.S.-Russia Energy Working Group Energy Management Project –Outcomes Develop summary recommendations for implementation at federal level using regional project data Regional pilot project will serve as template for replication on nationwide scale Partnership with U.S. companies to implement advanced cutting edge technology 8

U.S.-Russia Energy Working Group Coal Bed Methane Pilot Project Coal mine methane represents serious safety hazard in global mining operations Russia has experienced several catastrophic accidents in last several years Methane is also powerful greenhouse gas 1.9 bcm of methane released from Russias mines in

U.S.-Russia Energy Working Group Coal Bed Methane Project DOE,EPA and Raspadskaya Mining Corporation to develop a pilot project for recapture and utilization of coal bed methane Pilot Project will include site visits to U.S. to study application of U.S. technology; funding for feasibility study and work with U.S. trade agencies to access financing for project implementation 10

U.S.-Russia Energy Working Group Financing Access to financing for companies and governments implementing energy efficiency projects is critical Equity/Debt Critical for SMEs (Small and Medium-sized), but also large international companies as well 11

U.S.-Russia Energy Working Group Financing Workshop DOE and Ministry of Energy sponsored Workshop on Financing Energy Efficiency Projects on November 16 th Generous support of American Chamber of Commerce Panelists from various U.S. companies offered U.S. perspectives Workshop Objective: Showcase creative solutions successfully applied in the U.S. which could be transferred and adapted to Russias needs 12

U.S.-Russia Energy Working Group Financing: Next Steps DOE and Ministry of Energy to plan for a general conference in spring 2011 on financing energy efficiency projects DOE, the Ministry of Energy and other private partners to facilitate several trade missions between U.S. and Russia for SMEs in area of energy efficiency Outcome: Facilitate company-to-company links 13

U.S.-Russia Energy Working Group Clean Energy Technology Sub Group Goal – facilitate U.S.-Russian cooperation in fundamental and technical energy research Showcase and promote existing scientific cooperation and foster new scientific collaborations Possible Project Areas – biofuels, fuels from sunlight, new materials, hydrogen and fuel cell research 14

U.S.-Russia Energy Working Group Energy Security Sub Group Forum for U.S. and Russia to discuss long-term energy trends, national energy strategies and global energy markets Energy Investment Conference Spring

U.S.-Russia Energy Working Group Paul Tumminia Senior Advisor U.S. Department of Energy 16