Air Compliance Testing offers services as an Approved Offset Project Verifier for Ozone Depleting Substances (ODS) Destruction and Landfill Methane Emission offsets for the Chicago Climate Exchange®(CCX®). Air Compliance Testing will use information provided by the project owner or aggregator and site visits, if needed, to accurately assess a project's actual, annual Greenhouse Gas (GHG) sequestration or destruction. Go to www.chicagoclimatex.com for more information on CCX®, or contact us at 800-372-2471 for information on the requirements for verifying your ODS destruction or Landfill Methane Emission Offsets project.

Overview of CCX

CCX launched in 2003, is the world's first and North America's only active voluntary, legally binding integrated trading system to reduce emissions of all six major GHGs, with offset projects worldwide.

CCX Members are leaders in GHG Management and represent all sectors of the global economy, as well as public sector innovators. Reductions achieved through CCX are the only reductions made in North America through a legally binding compliance regime, providing independent, third party verification by the Financial Industry Regulatory Authority (FINRA, formerly NASD). The founder, Chairman and CEO of CCX is economist and financial innovator Dr. Richard L. Sandor, who was named a Hero of the Planet by Time Magazine in 2002 for founding CCX, and in 2007 as the "Father of Carbon Trading."

CCX emitting Members make a voluntary but legally binding commitment to meet annual GHG emission reduction targets. Those who reduce below the targets have surplus allowances to sell or bank; those who emit above the targets comply by purchasing CCX Carbon Financial Instrument® (CFI®) contracts.

CFI Contracts, the CCX Tradable Commodity

The commodity traded at CCX is the CFI contract, each of which represents 100 metric tons of CO₂ equivalent. CFI contracts are comprised of Exchange Allowances and Exchange Offsets. Exchange Allowances are issued to emitting Members in accordance with their emission baseline and the CCX Emission Reduction Schedule. Exchange Offsets are generated by qualifying offset projects.

Goals of CCX:

• To facilitate the transaction of GHG allowance trading with price transparency, design excellence and environmental integrity
• To build the skills and institutions needed to cost-effectively manage GHGs
• To facilitate capacity-building in both public and private sectors to facilitate GHG mitigation
• To strengthen the intellectual framework required for cost effective and valid GHG reduction
• To help inform the public debate on managing the risk of global climate change

Offset Project Verification

CCX employs independent verification throughout its GHG reduction and trading system to guarantee transparency, rigor and integrity, and to provide Members with standardized procedures for managing GHGs.

Upon project approval by the Committee on Offsets, a project owner or aggregator must obtain independent verification by a CCX approved verifier. Verifiers use information provided by the project owner or aggregator, combined with potential site visits, to accurately assess a project's actual, annual GHG sequestration or destruction. An offset project is subject to initial verification, as well as annual verification for the duration of its enrollment in CCX. Verification reports are reviewed by CCX staff as well as the CCX provider of regulatory services, FINRA, for completeness. If the project's performance has already been assessed by an independent organization that is not already a CCX approved verifier, that documentation may be used to support the CCX verification, subject to approval. The original verifier would need to qualify as a CCX verifier.

Landfill Methane Emission Offsets

CCX has developed simple, standardized rules for issuing Carbon Financial Instrument® (CFI™) contracts for Landfill Methane Capture and Combustion Projects.

Basic Specifications:

• Eligible landfills are those not required to collect methane by law (e.g., U.S. New Source Performance Standards).
• Methane offset projects placed into service on or after January 1, 1999 may qualify.
• Qualifying projects may earn offsets during the years 2003-2010.
• Project proponent must demonstrate clear ownership rights of the emission reductions from the destruction of methane.
• Selling energy to a third party or using gas for onsite energy use does not preclude the project from receiving credit, provided ownership of GHG attributes has been retained.
• Methane collection projects that include electricity generation may also qualify for Emission Offsets from Renewable Energy based on displaced emissions.
• All projects must be verified by a CCX Approved Verifier.

CFI contracts are issued on the basis of all methane collected and destroyed net of CO₂ released upon combustion, at a rate of 18.25 metric tons of CO₂ for each ton of methane combusted.

Ozone Depleting Substance Destruction Emission Offsets

CCX has developed simple, standardized rules for issuing Carbon Financial Instrument® (CFI™) contracts for projects engaging in the destruction of ozone depleting substances. CFI contracts are issued on the basis of the global warming potential of the ozone depleting substance destroyed, less 25%.

Basic Specifications:

• Ozone depleting substance projects undertaken on or after January 1, 2007 may qualify.
• Eligible projects must not be required by law.
• Qualifying projects may earn offsets during the years 2007-2010.
• Project proponents must demonstrate clear ownership of the emission reductions from the destruction of ozone depleting substances.
• All destructions must take place at a destruction facility in conformance with relevant operating and performance requirements.
• All projects must be independently verified by a CCX Approved Verifier