G R E E N P O W E R MARKET DEVELOPMENT GROUP …

  G R E E N
           P O W E R
  MARKET DEVELOPMENT GROUP




                     January 23, 2008
        Alcoa Inc.


              Dow    Dear Representative:

                     The Green Power Market Development Group would like to bring your attention to
           DuPont    the need for extending the renewable energy tax credits.

     FedEx Kinko's   The Group is the first commercial and industrial partnership dedicated to building
                     corporate markets for green power. Convened by the World Resources Institute and
                     consisting of 15 major U.S. companies, the Group seeks to develop corporate
   General Motors    markets for 1,000 megawatts of new, cost-competitive green power by 2010.

   Georgia Pacific   We believe that "green power" ­ energy from renewable resources such as biomass,
                     solar, wind, geothermal, and landfill gas ­ offers benefits to the economy, the
                     environment and the nation. In particular, green power:
           Google    · Stabilizes energy costs and diversifies energy portfolios;
                     · Stimulates job creation and economic development, especially in rural areas;
               IBM   · Reduces emissions of greenhouse gases (such as carbon dioxide), sulfur dioxide,
                         nitrogen oxides, and mercury; and
                     · Provides increased self-sufficiency and energy security to the United States.
         Interface
                     Group members have been demonstrating their leadership by working over the past
Johnson & Johnson    seven years to find attractive green power opportunities. To date, the Group and
                     affiliate members have completed over 650 megawatts of green power projects and
                     purchases ­ enough to power more than 487,000 homes ­ at more than 540 facilities
         Michelin    across 35 states.
North America, Inc

  NatureWorks LLC    However, Group members have encountered a number of barriers to cost-
                     competitive green power. Until the marketplace fully recognizes and values the
                     benefits of green power, renewable energy tax credits will continue to be vital for
     Pitney Bowes    supporting near-term development and utilization of cost-competitive renewable
                     energy.
           Staples
                     In 2006, these renewable energy tax credits were extended as part of the Tax Relief
                     and Health Care Act of 2006 (H.R. 6408) but are set to expire on December 31,
         Starbucks   2008. This measure falls short of what is required to successfully drive renewable
                     energy markets and technologies over the long-term. Several policy actions would
         Organizer   help address the deficiencies with the current renewable energy tax credits:

 World Resources
         Institute
      ·   Extend the renewable energy tax credit authorization period to 5-10 years. When the credit
          was reinstated in 2005, it provided project developers with only a two-year window to install
          renewable energy projects and thereby qualify for the tax credit. In late 2006 the credits
          were extended for just an additional year, expiring on December 31, 2008. Such short-term
          authorization periods (i.e., deadline by which a project must become operational in order to
          qualify for the tax credit) is problematic since it creates highly disruptive "boom and bust"
          project development cycles. In addition, since green power projects often take a number of
          years to develop, uncertainty regarding renewable energy tax credit renewal post-2008 can
          discourage project development and investment. Providing a 5- to 10-year authorization
          period would improve investment security for green power developers, increase the number
          of new projects, and reduce costs for green power buyers.

      ·   Grant 1.9 cent per kilowatt-hour tax credits for all renewables. With the current PTC,
          wind, closed-loop biomass, and geothermal energy facilities qualify for a 1.9 cent per
          kilowatt-hour (kWh) credit. Open-loop biomass, landfill gas, anaerobic digestion, and
          qualifying hydro projects receive only a 0.9 cent/kWh credit. Credit amounts should be
          expanded so that all renewable resources qualify for the full 1.9 cent/kWh credit. In addition,
          policymakers should retain the current practice of having PTC levels adjusted for inflation.

      ·   Allow renewable energy tax credits to be transferable. Group members have observed
          several green power projects that were not developed because renewable energy tax credits
          could not be adequately used. For instance, renewable energy tax credits could not be used
          by public utilities given their exemption from federal tax liability. Allowing these tax credits
          to be transferred to firms that could sufficiently utilize them would solve this issue. The
          transaction flexibility provided by transferable renewable energy tax credits would enable
          more companies to participate in green power projects, stimulating new investment and jobs
          where renewable energy resources are most abundant.

      We believe that our perspectives outlined in this letter are particularly timely. Congress will be
      making key decisions in the near future regarding the nation's energy policy. These decisions
      will have implications for the pace at which corporate markets for green power will develop.
      Significant opportunities therefore exist for policymakers to help advance a clean energy future.

      We encourage you to follow up with us if you would like to discuss these issues in more detail or
      if you would like additional perspectives on corporate markets for green power. Feel free to
      contact us directly or call Alexander Perera at the World Resources Institute at 202-729-7729.

      Yours sincerely,




Michael E. Witt,    Phil Zirngibl               Bill Weihl           Dennis Canavan         Mark Bukley
Ph.D.               Category Director,          Green Energy Czar    Executive Director,    Vice President,
Program Director,   Energy Strategic Sourcing   Google               Energy Management      Environmental Affairs
Energy & Climate    & Procurement                                    Johnson & Johnson      Staples
Change              Georgia-Pacific
The Dow Chemical
Company