1. Renewable Energy/Carbon Credits U.S. Energy Services, Inc & Wenck Associates, Inc

2. Agenda Introductions Fundamentals Scope Results Recommendations

3. Accounting vs Monetization Accounting Quantify and report GHGs from all sources in an organization (facility or enterprise) Example: emissions reported to The Climate Registry Monetization Focus on ‘project specific’ GHG reductions or generation of renewable energy (e.g. methane) Reductions or creation of renewable energy must be certified and credits can be sold (monetization)

4. How do we create GHG Value? 6 Major Greenhouse Gases –Carbon Dioxide –Methane –Nitrous Oxide –Hydroflourocarbons –Perfluourocarbons –Sulfur Hexafluoride Metric Ton of CO 2 equivalent (Mton CO 2 e) Monetize – Create and Exchange Environmental Assets for cash!

5. What is the Value? Average Price in 2009 –$4-$5.00 per Mton CO 2 e* Heavily dependent on “Quality” What is Quality –High Additionality –Co-Benefits –Offset Standard Buyer Motivation *Source: Voluntary Carbon Index, March-April 2009. New Carbon Finance 2009 $4.00

6. Project Overview Project Review –Additionality Review –Project Baseline Applicable Standards Determination of Credits Available Valuation –Renewable Energy

7. Projects Reviewed Metro Fluid Bed/Co-Gen Empire Flare Metro Diffuser Set Point Metro Diffuser Predictive Maintenance Blue Lake Algae Project

8. Market Look Not all reductions are created equal Practical hurdles to overcome –Cost –Buyer interest –Existing methodologies –Project Risk –Low carbon price Renewable Energy is a nice fit

9. Applicable Standards Methodologies Standards Membership Required Methane capture and destruction for Waste Water Renewable EnergyFuel Switching Energy Efficiency Carbon Sequestration Voluntary Carbon Standard  California Climate Action Registry In Development Chicago Climate Exchange EPA Climate Leaders

10. Projects

11. Recommendations Additionality Review Monitoring & Measurement Early Action Credits Standards Comparison Current Methodologies Project Type Volume Financial Sensitivity Analysis

12. Thank You Bob Peplin (763) 479-4220 work (612) 799-5297 cell bpeplin@wenck.com William Brown (763) 479-4212 work (678) 548-4861 cell bbrown@wenck.com Beau Griffey (763) 543-4683 work (913) 488-5820 cell bgriffey@usenergyservices.com