1. NEW FINANCING OPPORTUNITIES FOR RENEWABLE ENERGY By: Gregory Johnson, Partner

2. RURAL COMMUNITY RENEWABLE ENERGY BONDS ACT New category of qualified private activity bonds for renewable energy projects. Supplement to existing production tax credit authority for renewable energy facilities. Tax exempt bonds for privately owned, community sized and locally owned renewable energy facilities. New incentives for small and medium sized companies – alternative to PTC.

3. BENEFITS OF TAX EXEMPT FINANCE Interest on state and local bonds exempt from federal and state income taxation. Substantial economic inducement to the undertaking of such activities. Tax exempt bonds have substantially lower interest rate. Projects become more feasible and are more likely to be successful if undertaken.

4. QUALIFIED RENEWABLE ENERGY FACILITY The facility uses wind, closed-loop biomass, open-loop biomass, geothermal, solar, small irrigation, landfill gas or qualified hydropower to produce electricity; The name plate capacity rating of the facility is not more than 40 megawatts, subject to certain exceptions; Not less than 49% of the project is owned by residents of the state in which such facility is located; Ten percent or more of the facility is owned by residents of the local area in which such facility is located – 200 mile radius.

5. BENEFITS OF REBA PTC used by larger enterprises looking to shelter substantial amounts of otherwise taxable income. The REBA will assist smaller entities which may not have the ability to benefit from a tax credit. Exemption from State Volume Cap Preservation of MACRS depreciation Authority for tailored income allocations

6. Gregory Johnson, Partner Patton Boggs LLP 4801 California Street Suite 4900 Denver, Colorado 80202 (303) 894-6187 gjohnson@pattonboggs.com www.pattonboggs.com FOR ADDITIONAL INFORMATION, PLEASE CONTACT: