GRS Sells US $1.8 Million of Renewable Energy Certificates

Clean Power Income Fund (CLE.UN: TSX) announced today that Gas Recovery Systems, Inc. (GRS) of Livermore, California has entered into a contract for the sale of US $1.8 million of Renewable Energy Certificates (RECs) to Massachusetts Electric, a subsidiary of National Grid USA. The sale involves RECs generated from the third quarter 2002 through to the end of 2004 by two of GRS's 29 biogas generating stations, Fall River and Randolph - both located in Massachusetts. The REC revenues from the Fall River generating station are shared with the Town of Taunton, Mass., which is expected to receive US $400,000 during the contract period.

The GRS contracts were negotiated by CSGServices, Inc., an affiliate of Conservation Services Group of Westborough, Mass., pursuant to the Massachusetts Renewable Portfolio Standard (225 CMR 14.00) which came into effect in April 2002. As Stephen L. Cowell, CEO of CSG explained, "The law was created to establish a baseline of demand for cleaner, newer power plants and reward these cleaner technologies for their increased environmental performance when compared to conventional power plants".

Under these new regulations, resellers of electricity in Massachusetts must include green energy in their mix of power resources to at least a minimum standard. One option for satisfying these requirements is the purchase of RECs from qualified suppliers. The sale of "green" attributes embodied in the RECs may involve a separate and distinct transaction from the sale of power. In the case of the agreement between GRS and Massachusetts Electric, GRS's existing power sales contracts are unaffected, giving GRS incremental revenues from the sale of RECs.

"These new contracts demonstrate the impact on GRS's operations of the Renewable Portfolio Standard regulations now coming into force across the United States," said Stephen Probyn, President and CEO of Clean Power Inc., Administrator of Clean Power Income Fund. "We are pleased to see the market for the 'green' attributes of renewable power generation developing in New England and hope for additional REC sales based on our facilities in the region. As we announced in December 2002, in terms of new contracts with San Diego Gas & Electric, RPS legislation in California is already having a significant impact on GRS's operations there. Now that some 14 U.S. states - including, most recently, New York - have either implemented or are in the process of implementing RPS laws, we expect to see a positive impact nationwide."

Landfill gas (LFG), also known as biogas, is largely comprised of methane, which is 21 times more damaging to the environment than an equivalent volume of carbon dioxide (CO2) emissions. By capturing and converting LFG into energy, GRS's operations eliminate some 5.9 million tonnes of CO2 equivalent per year. On October 31, 2002, Clean Power Income Fund closed its investment of US $94 million to finance the acquisition of GRS, which is the largest independent landfill gas recovery power generator in the United States. GRS owns and operates 29 LFG recovery facilities in nine states and is the largest independent LFG recovery power generator in North America.