Lieberman-Warner Bill Advances U.S. Climate Legislation Debate

ICF Study Shows Latest Revision to Bill Brings Down Allowance
Prices by More Than One Third
FAIRFAX, Va.--(Business Wire)--
ICF International (NASDAQ:ICFI) announced today that it has
conducted an analysis of the revised release of the Lieberman-Warner
Climate Bill with the Boxer Amendments (S. 3036). The analysis
indicates that the revised bill has the potential to reduce future
carbon dioxide (CO2) allowance prices by approximately one third
compared to the earlier version. These and other key findings are
reported in an update to ICF's U.S. Emission and Fuel Markets Outlook
that examines U.S. energy market dynamics under proposed air
regulations and alternative greenhouse gas emission control programs,
including the multi-sector legislation proposed by Senators Joe
Lieberman (I-Conn.) and John Warner (R-Va.).

While the bill is expected to face careful scrutiny in the U.S.
Senate, where debate started on Monday, ICF believes that, whether it
passes or not, the bill has significantly advanced the debate on
climate change legislation. Comparing the costs associated with the
latest version of the bill to those in the earlier version highlights
the impact of offsets and the role that they may serve as a key cost
containment measure. The cost of any proposed climate change
legislation is expected to be a crucial factor in eventual U.S.
legislation. With both presidential candidates supporting greenhouse
gas legislation, ICF expects a mandatory emission reduction regime at
the federal level to take effect in the next five to seven years.

Two weeks ago, Senators Lieberman and Warner revised their
proposal to allow for the use of international offset
projects--including a carve-out for forestry--of up to 15 percent of
the required emission cap, in addition to the 15 percent offsets from
domestic U.S. sources that were previously allowed.

"By opening up the total amount of offsets allowed from 15 percent
to 30 percent, the bill's sponsors have recognized the fundamental
importance of offsets as a bridge compliance mechanism until the
technologies are developed that allow a transition to a low-carbon
future," said Steve Fine, vice president at ICF. "By doubling the
offset provision, they have brought down forecasted allowance prices
by more than one third."

ICF projects that the majority of reductions required by S. 3036
and other proposed bills will be achieved by the power sector. These
reductions would come at a time when the U.S. electric sector is going
to require 300 to 500 GW of new generating capacity in the next 25
years to meet growing demand.

"There is no one-size-fits-all solution to the challenge of
meeting growing demand under GHG regulation," says Fine. "In the event
the enacted emission cuts are similar to those proposed, they would
eventually require the significant deployment of very low- or
non-emitting technologies such as renewables, nuclear, and coal with
carbon capture and sequestration. The new provisions of S. 3036
allowing for the increased use of offsets would provide critical
lower-cost reduction options during the transition period until these
technologies become widely available."

ICF's Emission and Fuel Markets Outlook provides a comprehensive,
integrated view of coal, natural gas, and U.S. allowance markets based
on more than two decades of forecasting energy market trends as one of
the nation's leading energy and environmental analysis firms. For more
information, visit http://www.icfi.com/emissions.

About ICF International

ICF International (NASDAQ:ICFI) partners with government and
commercial clients to deliver consulting services and technology
solutions in the energy, climate change, environment, transportation,
social programs, health, defense, and emergency management markets.
The firm combines passion for its work with industry expertise and
innovative analytics to produce compelling results throughout the
entire program life cycle, from analysis and design through
implementation and improvement. Since 1969, ICF has been serving
government at all levels, major corporations, and multilateral
institutions. More than 3,000 employees serve these clients worldwide.
ICF's Web site is www.icfi.com.

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This document may contain "forward-looking statements" as that
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statements that contain these words carefully because they discuss our
future expectations, contain projections of our future results of
operations or of our financial position, or state other
forward-looking information, and are subject to factors that could
cause actual results to differ materially from those anticipated. For
ICF, particular uncertainties that could adversely or positively
affect the Company's future results include but are not limited to:
risks related to the government contracting industry, including the
timely approval of government budgets, changes in client spending
priorities, and the results of government audits and investigations;
risks related to our business, including our dependence on contracts
with U.S. Federal Government agencies and departments and the State of
Louisiana; continued good relations with these and other customers;
success in competitive bidding on recompete and new contracts;
performance by ICF and its subcontractors under our contract with the
State of Louisiana, Office of Community Development, including but not
limited to the risks of failure to achieve certain levels of program
activities, termination, or material modification of the contract, and
political uncertainties relating to The Road Home program;
uncertainties as to whether revenues corresponding to the Company's
contract backlog will actually be received; the future of the energy
sector of the global economy; our ability to attract and retain
management and staff; strategic actions, including attempts to expand
our service offerings and client base, the ability to make
acquisitions, and the performance and future integration of acquired
businesses; risks associated with operations outside the United
States, including but not limited to international, regional, and
national economic conditions, including the effects of terrorist
activities, war, and currency fluctuations; and other risks and
uncertainties disclosed in the Company's filings with the Securities
and Exchange Commission. These uncertainties may cause ICF's actual
future results to be materially different than those expressed in the
Company's forward-looking statements. ICF does not undertake to update
its forward-looking statements.

ICF International
Lindsey Litton, +1-571-265-1472
llitton@icfi.com

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