The document compares key issues in pending US legislation regarding offset policies. It discusses the role of the USDA versus the EPA in implementing agricultural offset programs. It analyzes and compares the bills in terms of project categories eligible for offsets, treatment of early actors who generated offsets prior to programs, and agricultural incentive programs. The Kerry-Boxer and Waxman-Markey bills are more similar to each other than to the Stabenow bill in these areas.

1. Offset Policy in Pending Legislation A Comparison of Key Issues December 2, 2009 Catharine Cyr Ransom Senior Climate and Environmental Advisor Senator Max Baucus (D-MT)

5. Project Categories • Broad List: “No - till” • Avoided Abandonment Waxman-Markey with Peterson Amendment Kerry-Boxer Stabenow List of Eligible Ag and Forest Offset Types “ shall include…practices…such as” ‘‘ shall consider” “ shall include…at a minimum, activities,… including”

6. Treatment of Enrolled Early Actors Waxman-Markey with Peterson Amendment Kerry-Boxer Stabenow Crediting Period for Early Offsets Projects initiated January 1, 2001 - January 1, 2009 credited up to program start date or 3 years after enactment Projects initiated January 1, 2001 - January 1, 2009 credited up to program start date or 3 years after enactment Projects initiated January 1, 2001 –program start date may be credited for up to 10 years Allowable Early Offsets State or Tribal regulatory program or program of equal stringency as approved by EPA State or Tribal regulatory program or program of equal stringency as approved by President Any regulatory or voluntary program as approved by Agencies

7. “ Carbon Conservation Program” • Project Category Definition • Federal Grazing and Timber Contract Holders Waxman-Markey with Peterson Amendment Kerry-Boxer Stabenow USDA Allowance Program for Sequestration, New Offset Types and Early Adopters Limited Supplemental Agriculture and Renewable Energy Program 0.28% of allowances for 2012 - 2016 Limited Supplemental Agriculture, Renewable Energy and Forestry Program 1% of allowances 2012-2050 Extensive Carbon Conservation Program