In addition to federal initiatives, several provincial governments in Canada have either implemented or announced proposed green power standards. Specifically, certain provincial governments, to varying degrees and through different programs and incentives, are supportive of the development of wind energy and other renewable energy resources. Government support can take several forms but typically is in the nature of a green power procurement program, a voluntary or mandatory Renewable Portfolio Standard or the provision of financial incentives, such as cost sharing, repayment guarantees or tax credits for eligible projects.

Examples of some of the specific provincial regulatory initiatives are summarized below.

British Columbia

Over 80% of EarthFirst’s development pipeline and almost 95% of the Corporation’s construction-ready and late stage development projects are in British Columbia.

The British Columbia government introduced a voluntary target goal of purchasing 50% of new supply from clean electricity over the ten year period beginning November 2002. BC Hydro has surpassed its voluntary target to meet 10% of new energy requirements from clean energy. The targeted 50% level is expected to continue driving market demand for clean energy sources. On February 13, 2007, the British Columbia government announced plans to reduce its greenhouse gas emissions by 33% over current levels by 2020, and has indicated that all new and existing electricity produced in B.C. will be required to have zero greenhouse gas emissions by 2016. Its plan includes requiring 90% of the Province’s electricity come from renewable sources and establishing a new $25-million Innovative Clean Energy Fund to encourage the commercialization of alternative energy solutions.

As evidence of this commitment, during the 2006 open call for power (the “2006 Call”), BC Hydro awarded 38 contracts to Independent Power Producers across B.C. which included 29 hydro, three wind, two biomass, two waste heat and two coal/biomass projects totalling approximately 7,000 GWh of energy per year. Approximately 73% of the energy to be generated from the 2006 Call represents “clean energy” as defined in the B.C. Clean Electricity Guidelines. The contracts are long-term purchase agreements with an average term of 30 years. The projects are located throughout the Province and are expected to generate $3.6 billion in private sector investment. It is anticipated that further procurement of B.C. Clean Electricity will be solicited in a subsequent call for power by BC Hydro in addition to BC Hydro’s Clean Power Call.

British Columbia’s domestic demand for electricity is beginning to outstrip the capability of the Province’s existing low-cost resources. While British Columbia enjoyed significant surpluses in the past, it has, according to BC Hydro, imported electricity from neighbouring jurisdictions every year since 2001. In an effort to meet these supply challenges, BC Hydro prepared the BC Hydro Integrated Electricity Plan which explores methods of closing the Province’s energy gap and ensuring electricity self-sufficiency. The three methods identified by BC Hydro to deal with this supply demand imbalance include conservation measures, purchasing power from IPPs and additional investments in BC Hydro’s generating assets. According to BC Hydro, in 20 years the estimated supply gap will range from 25-45%, which should provide additional opportunities for IPPs, such as the Corporation, to meet that demand.

The principles of the updated B.C. Energy Plan 2006, released by the Minister of Energy, Mines and Petroleum Resources on February 27, 2007, support the continued growth by IPPs of clean or renewable energy generation in British Columbia. Those principles include:

• British Columbia becoming energy self-sufficient by 2016;
• all new electricity generation projects in British Columbia having zero net greenhouse gas emissions;
• clean or renewable electricity generation continuing to account for at least 90% of total generation;
• zero greenhouse gas emissions from any coal thermal electricity facilities;
• no nuclear power;
• further improvements in transmission infrastructure to meet growing energy needs; and
• ensuring the procurement of electricity appropriately recognizes the value of aggregated intermittent resources.

BC Hydro is currently planning two future calls for power in 2007 and 2009, each of which contemplate the procurement of an additional 5,000 GWh.

Alberta

Since 1998, Alberta’s electricity generation from renewable sources including wind has increased by over 500MW. In 2006 the Alberta Electric System Operator imposed an initial maximum threshold of 900 MW on wind energy development while policy work was underway on forecasting and related issues relevant to increasing the threshold. The 900 MW threshold was lifted on September 26, 2007 and replaced by the Market & Operational Framework for Wind Integration in Alberta. Stakeholder consultations are now being organized by the Alberta Electric System Operator to develop rules, tools and practices to implement the new framework.

On July 1, 2007, the Alberta Government implemented the Specified Gas Emitters Regulation and accompanying guidelines, which mandate a 12% reduction in greenhouse gas emissions intensity for established large emitters with annual greenhouse gas emissions of over 100,000 tonnes. Regulated facilities may comply by purchasing emission offsets from Alberta emission reduction sources that are likely to include windpower facilities. The protocol that will allow the Alberta Government to issue emission offsets to renewable generation facilities including wind is currently under development and expected to be finalized and released by the end of 2007.

Ontario

On July 13, 2006 the Ontario Government released its Supply Mix Directive to the Ontario Power Authority including targeted levels of supply from renewable sources equal to 10,402 MW by 2010 and 15,700 MW by 2025. On August 29, 2007, the Ontario Power Authority released the mandatory Integrated Power System Plan ("IPSP") which reflects the same renewable targets. The IPSP specifically identifies that 1250 MW of wind energy are anticipated to be installed by 2010 as a result of the Province's renewables RFPs and Standard Offer Program and 4,685 MW of new windpower projects are planned for installation by 2025. The development of new transmission is necessary for achieving these targets.

To date the Government of Ontario has announced three individual requests for proposals for renewable power and launched the Renewable Energy Standard Offer Program for renewable facilities of less than 10 MW on November 22, 2006. The RESOP is offered to any renewable resource type that qualifies as a renewable resource, including wind, small hydro, solar and some biomass.

The Government of Ontario currently has in place a renewables capacity target of 5% (1,350 MW) by 2007. In July 2003, the Government of Ontario also committed to purchasing 20% of the electricity used in government buildings from renewable sources.

Québec

Hydro Québec is one of Canada's largest purchaser of electricity generated by wind energy. Hydro Québec's 2006-2010 Strategic Plan focuses on three main priority areas: (i) energy efficiency; (ii) complementary development of hydroelectricity and windpower (the two major renewable energy sources in Québec); and (iii) technological innovation.

In October 2004 and February 2005, Hydro-Québec announced an aggregate of 990 MW of new windpower projects to be installed between 2006 and 2012. Contracts were signed in July 2005. In October 2005, Hydro-Québec issued an RFP for an additional 2,000 MW of windpower projects, bringing the Province's total to almost 3,500 MW by 2013 and 4,000 MW by 2015. In addition, the Government of Québec has launched a wind farm construction project which sets aside public land to foster windpower industry development in the Gaspé region and Matane Regional County Municipality.

The Government of Québec's commitment to windpower has also been evidenced in its employment programs. A 30% refundable tax credit for wages paid to eligible employees is available from the Government of Québec for the production of wind generated electricity in the Gaspésie-Îles-de-la-Madeleine region. In addition, incentives for wind electricity generation are also provided by the Fonds pour l'accroissement de l'investissement privé et la relance de l'emploi (Private Investment Promotion and Job Creation Fund). This fund offers a number of incentives to qualifying windpower projects, including cost sharing, repayment guarantees, repayable or non-repayable contributions and interest assumption.

Saskatchewan

In 2003, SaskPower launched its Environmentally Preferred Power (“EPP”) solicitation program, which contemplated a solicitation of up to 45 MW of renewable power over three phases. In phase one (2003), SaskPower requested proposals for the supply of a total of 15MWof renewable energy. Benchlands Wind Power Corp. was awarded a 5.4 MW PPA, but subsequently terminated the agreement, due to the poor economics of the small project. In 2005, SaskPower solicited another 32 MW of renewable energy, within phase two of its EPP solicitation program, resulting in the award of the right to negotiate PPAs for three heat-recovery projects (15.3 MW) and one wind project (24.75 MW).

On June 14, 2007, the Government of Saskatchewan released its Green Strategy and Energy and Climate Change Plan, which stated that the plan should ensure that “all of SaskPower’s new and replacement electricity generation facilities are either emissions free or fully offset by emission credits”. To advance this plan, on September 6, 2007, the Government of Saskatchewan announced that it will invest more than $500 million in a suite of sustainable and renewable energy programs, including the expansion of the Green Power Portfolio. This includes the expansion of wind generation in Saskatchewan, with a goal of an additional 100 MW of wind generated capacity by 2012. In support of this initiative, SaskPower announced that it will proceed with phase three of its EPP solicitation program in the fall of 2007, however, no details have been announced. SaskPower will also establish a Wind Power Integration and Development Unit, to further study wind deployment in the Province.

Manitoba

The Government of Manitoba has announced that windpower can complement the current reliance on hydroelectric power in the Province, as the hydro reservoir system can be used to store the intermittent power production of wind to later be dispatched on-demand by traditional hydro generation. Manitoba Hydro has indicated that it is currently committed to producing or purchasing 250 MW of windpower. In November 2005, the provincial government and Manitoba Hydro released an invitation for expressions of interest, due January 2006, for utility scale wind projects of up to 1,000 MW. In September 2006, Manitoba Hydro announced that it would issue an RFP for 300 MW of windpowered generation. The RFP, which closed July 2007, is part of the Province’s commitment to develop 1,000MWof windpower by 2018, at which time it is expected that wind will represent 8% of Manitoba Hydro’s total annual electricity generation. In addition to the request for 300 MW released March 30, 2007, three further allocations of 200 MW each are currently targeted for 2013-14, 2015-16 and 2017-18, subject to economic viability.

Nova Scotia

In January 2007, the Nova Scotia Department of Energy introduced regulations that require approximately 20% of Nova Scotia’s electricity to be generated by renewable energy by 2013. The regulations call for renewable energy increases of 5% to the total supply by 2010, and 10% by 2013, in addition to renewables already in the place as of 2001. To meet the 2010 target, only IPPs will be able to bid on new renewable projects. Electricity utilities may be required to pay a penalty of up to $500,000 per day for failing to meet these targets.

Nova Scotia Power Inc. (“NSPI”), a wholly-owned subsidiary of Emera Inc., a publicly traded regional energy company, provides over 97% of Nova Scotia’s electric generation, transmission and distribution. On March 12, 2007, NSPI announced the RFP for 130 MW of additional renewable energy, enough to power 40,000 homes in Nova Scotia. The RFP targets execution of the PPAs before the end of 2007. According to NSPI, at the time of the RFP, approximately 12% of the electricity produced in Nova Scotia was generated from renewable sources.

New Brunswick

In July 2006, the Government of New Brunswick passed the Electricity from Renewable Resources Regulation under the New Brunswick Electricity Act which required New Brunswick Power to purchase 10% of its power supply from new renewable sources by 2016. In response to the Regulation, New Brunswick Power planned to add 400MWof Windpower over the next 10 years to contribute to the 10% renewable target.

In early 2007, New Brunswick Power entered into two PPAs with private generators relating to the development of96 MW of wind energy. In addition, New Brunswick Power issued an RFP for the purchase of up to 300 MW of wind generation by November 2010 from potential private sector developers. The deadline for submissions to this RFP was August 31, 2007. This RFP accelerates the original plan to have 400 MW of wind energy by 2016.

Newfoundland and Labrador

The Government of Newfoundland and Labrador has announced that no additional requirements for capacity and electricity generation will be needed until at least 2010. However, possible constraints on greenhouse gas emissions may pose a threat to the competitiveness of current and future thermal generation. Newfoundland and Labrador Hydro (“NLH”) has stated that due to the intermittent nature of electricity generation from wind projects, they would initially be limited to 10% of Newfoundland and Labrador’s generating capacity.

In December 2005, NLH issued an RFP for 25 MW of windpower and awarded a 20-year PPA to a 25 MW wind project. In October 2006, NLH announced a second RFP for an additional 25 MW of wind generation, and a resulting 24 MW PPA was awarded in December 2006 for another wind project.

Prince Edward Island

The Government of Prince Edward Island has announced plans to commit to a Renewable Portfolio electricity from renewable sources of at least 15% by 2010. Prince Edward Island has also stated that opportunities for having 100% of its electrical capacity acquired from renewable energy by 2015.