Landmark California legislation AB 32 has set the stage for dramatic changes in the way we do business. California Air Resources Board (ARB) has already approved early action measures and required mandatory emission reporting from some sectors. It will soon be developing the scope of broad-based future mandatory measures. Some form of a market-based cap and trade system is anticipated and ARB has begun to approve protocols for the reporting and certification of certain carbon reduction measures that could result in marketable credits. We have both monitored and participated in these developments and advised our clients as to their potential implications. In addition, there is anticipated federal legislation that will likely require nationwide carbon reduction measures. We have substantial expertise in carbon offsets and reporting requirements and have worked with clients in developing those protocols for two of the three industries for which protocols have so far been approved by California Air Resources Board. Our attorneys also provide counsel and strategies for maintaining the eligibility of carbon offsets for future trading as the regulatory environment continues to change. Our substantial regulatory and air quality experience has prepared us well to address the development and implementation of future regulations. Representative Experience Counseled the California dairy industry regarding the development and implementation of manure management protocols for the reduction of methane emission and reporting of resulting carbon offsets. Represented the dairy industry before regulatory agencies regarding issues relating to methane emissions. Represented the dairy industry in litigation seeking the regulation of methane emissions under pre-AB 32 legislation. Counseled The Nature Conservancy regarding the development and implementation of forestry carbon offset projects on public lands. Advised a utility on its carbon emission reporting obligations.