1. Agenda Item 13b Update: Ohio River Basin Water Quality Trading Project

2. 2 © 2012 Electric Power Research Institute, Inc. All rights reserved. The Trading Plan is Signed! August 9 th, 2012 in Cincinnati Ohio June 22: A nutrient pollution article in The Economist mentions EPRI's Water Quality Trading Program.nutrient pollution article

3. 3 © 2012 Electric Power Research Institute, Inc. All rights reserved. On the Ohio River Peter Tennant, ORSANCO Harris Sherman, Undersecretary, USDA Jessica Fox, EPRI Bob Perciasepe, Deputy Administrator, EPA

4. 4 © 2012 Electric Power Research Institute, Inc. All rights reserved. Water Quality Trading Signing Ceremony Media Advisory and Press Release Coordinated with State and Federal Offices and Agricultural Community Extensive Coverage in Daily Newspapers and National Energy and Agricultural Trade Publications

5. 5 © 2012 Electric Power Research Institute, Inc. All rights reserved. Upper Ohio Lower Muskingum Middle Ohio Great Miami Pilot Trade Locations

6. 6 © 2012 Electric Power Research Institute, Inc. All rights reserved. Details of Pilot Program Location of Pilot Trades Overall Credit Process Watershed Model Agricultural Baselines Reserve/Insurance Pool Incentives for Early Buyers Adaptive Management

7. 7 © 2012 Electric Power Research Institute, Inc. All rights reserved. EPRI Gets $1,000,000 For Registry A Credit Registry for the Ohio Basin WQT Program The purpose of this project is to deploy an innovative, secure and proven market infrastructure for pilot testing in the Ohio River Basin WQT Program. $1M of funding Matching with $1M. –Ohio Environmental Protection Agency –Indiana Department of Environmental Management –Kentucky Dept. of Environmental Protection –Ohio River Valley Water Sanitation Commission (ORSANCO) –American Farmland Trust –Hunton & Williams

8. 8 © 2012 Electric Power Research Institute, Inc. All rights reserved. Credit Trading Registry

9. 9 © 2012 Electric Power Research Institute, Inc. All rights reserved. Next Steps and Schedule Contracts with States RFP to Farmers BMPs on the ground Credits Come to Market Transactions! Anticipate first transactions in early 2013. Total Pilot period 2012-1015 In 2015, EPRI will transition management to another party.

10. 10 © 2012 Electric Power Research Institute, Inc. All rights reserved. Ohio River Trading Project Website www.epri.com/ohiorivertrading