In order to be eligible for a pre-payment the tree must be 6 months old.
The pre-payment is $.02 USD per year for each living tree over 6 months of age
This pre-payment is also the minimum payment that Clean Air Action guarantees per year for each living tree.
When the tree reaches maturity after 5-10 years, it is eligible for profit sharing. When profit sharing starts, the tree is no longer eligible for pre-payments.
Under the Green House Gas Contract the Clean Air Action Corporation agrees to give 70% of the profit from the sale of carbon credits back to the Small Group. This concept can sometimes be confusing, so the following section breaks down this profit sharing arrangement step-by-step.
When a tree reaches sufficient size, Clean Air Action can sell the carbon sequestered by those trees as a carbon credit, receiving money.
This carbon revenue includes two parts: the COST, including the costs of the TIST program, and the PROFIT, which is what is left when cost is subtracted from the Carbon Revenue.
Sharing the Profit
Clean Air Action agrees to share the profit with the TIST Small Group.
70% Profit Share
From this Profit, Clean Air Action agrees to give 70% of the profit to the TIST Small Group. The rest is invested back into the TIST Program.
Farmers join TIST as a Small Group. These farmers plant trees as a Small Group and are quantified as a Small Group. TIST pays the Small Group, not the individual farmers in the group.
The Small Group members retain ownership of the land and the trees, and anything that the trees grow. Clean Air Action owns the carbon sequestered by those trees.