Major Businesses and Environmental Defense Fund Announce Joint Principles to Inform EPA Regulation of Greenhouse Gas Emissions

FOR IMMEDIATE RELEASE:

Contacts:        Tony Kreindler, Environmental Defense Fund, (202) 445-8108
                          Mark MacLeod, Environmental Defense Fund, (202) 572-3377
                          Robert Wyman, National Climate Coalition, (213) 359-0091
                           Additional Contacts Listed Below
  
(Washington, D.C. – December 2, 2008).   Today, a broad coalition of businesses and Environmental Defense Fund announced principles, jointly forged, to inform the U.S. Environmental Protection Agency’s regulation of greenhouse gas emissions under the Clean Air Act.   While the participants reflect a broad set of interests with divergent views, they are united in common cause by a commitment to work constructively on these issues.   
 
The following businesses and Environmental Defense Fund (a national non-profit and non-partisan environmental advocacy organization) have signed on to these principles:
 
American Electric Power
Austin Energy/City of Austin, Texas
Environmental Defense Fund
National Grid
PG&E Corporation
Public Service Enterprise Group
 
The following members of the National Climate Coalition:
 
The AES Corporation
American Honda Motor Co., Inc.
3M Company
NRG Energy, Inc.
Reliant Energy, Inc.
Texas Industries, Inc.

 

 

 
 
 
 
 
 
The principles are set out in full below.

Principles for Regulating GHG Emissions Under the Clean Air Act
 

Working together, America has made landmark progress in protecting human health and the environment from air pollution.   This progress has been anchored in law, science, and economics, and advanced by the efforts of federal and state governments, businesses, academia, innovators, conservationists, and other allies. 

These businesses and environmental organization share the following common beliefs:

1.      The Supreme Court’s decision in Massachusetts v. EPA requires the EPA to determine whether greenhouse gas emissions endanger public health and welfare. This coalition believes that EPA will take prompt action.

2.      Because stabilizing greenhouse gas concentrations in the atmosphere will require the transformation of our energy, manufacturing and transportation systems, Congress should be the authoritative body to undertake the essential work to craft comprehensive climate legislation. This legislation should define and integrate the appropriate roles of departments and agencies with expertise regarding our nation’s energy, environment, security and transportation programs.

3.      While Congress deliberates, the nation can make common sense progress today under existing law in addressing greenhouse gas emissions.   EPA can develop a unifying national framework for regulating greenhouse gases.   We also recognize that state initiatives have an important role within the national framework. The partnership between the federal government and the states presents important policy questions of broad public interest.  

4.      EPA regulation of greenhouse gases under the Clean Air Act, to the extent undertaken prior to further Congressional action, should use the authority that is best suited to address greenhouse gas emissions in the manner and according to the principles described below. EPA should advance policy actions that address the potential for unintended adverse consequences. We pledge to work together, with EPA, the Administration and Congress to identify areas of concern and to support a balanced and constructive path forward.

While we may have divergent views on some specific aspects of the U.S. Environmental Protection Agency’s role in regulating greenhouse gases under the Clean Air Act, we respectfully offer the following jointly shared principles for agency action:

Policy Action Rooted in Science.   EPA should root its actions in science, carrying out measures that are consistent with science-based imperatives and technological capabilities to reduce greenhouse gas emissions.   Policy action to address greenhouse gases will present new technical and practical challenges.   EPA’s leadership in understanding and addressing the development of rigorous lifecycle analyses, the interactions among various pollutants, and the promise of emerging technologies will be invaluable.

Consultation with Congress.   EPA should consult closely with Congress to integrate administrative and legislative responses.   EPA’s role in conducting transparent analysis for legislative initiatives will provide additional opportunity to strengthen coordination between the Agency and Congress.

A Partnership with States and Local Governments.   There are a wide variety of views over design, implementation and integration of federal, state, and local greenhouse gas emissions reduction policies. While these present important issues to be resolved by federal and state policymakers, there is broad agreement that, in our system of government, all levels of government must work together in partnership if the nation is to effectively address this challenge.

Public Outreach and Participation.   EPA must be committed to public outreach and participation, to ensure that those who have a stake in EPA’s policies have an opportunity to inform EPA’s policies.    

Getting Started with Good Data.   EPA should meet the congressional deadlines for putting in place a mandatory greenhouse gas registry, and design a registry that builds from the foundation established by state registry programs.   Whether legislative or administrative, good policy action must be based upon good data.  
Prioritizing Cost-Effective Reductions that Make Real Progress.   EPA should prioritize taking action to put in place policy measures to reduce greenhouse gas emissions that are cost-effective, can be implemented and will make real progress with lasting benefits.  

Early Action Must Be Recognized.   EPA policies should recognize that some private firms have voluntarily reduced greenhouse gas emissions in advance of mandates. These firms should receive credit for documented emission reductions that are leading the way.  

Using Tools that Make Sense and Ensure Accountability.   The Clean Air Act architecture provides for flexibility mechanisms, performance standards, and source-specific emission limitations, depending on the source of emissions and the underlying statutory authority.   EPA should apply the tools that are best-suited to solving the problem.    In the stationary source arena, we believe programs that both ensure significant progress in reducing greenhouse gas emissions from existing sources with the greatest flexibility practicable and encourage investment in new clean technologies are most promising.   Conversely, we believe that it would not be constructive for EPA to establish national ambient air quality standards for carbon dioxide. These are complex issues and we commit to further prompt dialogue in this area to identify the appropriate elements of such a balanced program that secures emission reductions through cost-effective flexibility mechanisms.

Integrated Multipollutant Planning.   There is a multi-faceted connection between greenhouse gas emissions and traditional airborne contaminants. When feasible, EPA’s policies should optimize investments in pollution controls to obtain cost-effective multi-pollutant benefits. 

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SIGNATORIES AND CONTACTS
 
American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP’s headquarters are in Columbus, Ohio.   For more information, visit www.aep.com.
       Contact:       Melissa McHenry (614) 716-1120 

Austin Energy, the City of Austin, Texas municipal utility is the 10th largest public power utility in the country with 380,000 customers and serving a population of 880,000.   The utility provides low-cost, reliable power and is nationally recognized for some of the most advanced and comprehensive energy efficiency and Green Building programs in the nation.   Under a recently announced “Climate Protection Plan” by the City of Austin, Austin Energy will offset, by 2020, the need for a 700 megawatt power plant through energy efficiency and load shifting initiatives, provide 30% of its generation portfolio with renewable energy, and achieve 100 megawatts of solar power by 2020.  For more information, visit www.austinenergy.com.
       Contacts:       Patricia Tierney Alofsin (512) 322-6009 or patricia.alofsin@austinenergy.com
                               Ed Clark (512) 322-6514 or ed.clark@austinenergy.com

Environmental Defense Fund is a leading national nonprofit organization, represents more than 500,000 members. Since 1967, Environmental Defense Fund has linked science, economics, law and innovative private-sector partnerships to create breakthrough solutions to the most serious environmental problems. For more information, visit   www.edf.org.
       Contacts:       Tony Kreindler (202) 445-8108 or tkreindler@edf.org
                               Mark MacLeod (202) 572-3377 or mmacleod@edf.org
                               Vickie Patton (720) 837-6239 or vpatton@edf.org
 
National Grid (LSE: NG.; NYSE:NGG) is an international electricity and gas company and one of the largest investor-owned energy companies in the world.   In the U.S., National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island, and manages the electricity network on Long Island under an agreement with the Long Island Power Authority (LIPA).   It is the largest distributor of natural gas in the northeastern U.S., serving approximately 3.4 million customers in Massachusetts, New Hampshire, New York and Rhode Island.   National Grid also owns over 4,000 megawatts of contracted electricity generation that provides power to over one million LIPA customers. For more information, visit www.nationalgrid.com.
       Contact:        Chris Mostyn (718) 403-2747 or chris.mostyn@us.ngrid.com
 
PG&E Corporation is an energy-based holding company and the parent company of Pacific Gas and Electric Company, one of the largest combined natural gas and electric utilities in the United States.  Based in San Francisco, the company delivers some of the nation’s cleanest energy to 15 million people in northern and central California.  For more information, visit www.pgecorp.com. 
       Contact:       Brian Hertzog (202) 662-2352 or brian.hertzog@pge-corp.com
 
PSEG (Public Service Enterprise Group) operates one of the largest electric and gas companies in the US, and New Jersey’s oldest and largest publicly owned utility. PSEGis a publicly traded diversified energy company with annual revenues of more than $12 billion, and three principal subsidiaries: PSEG Power, PSEG Energy Holdings, and Public Service Electric and Gas Company. For more information, visit www.pseg.com.
       Contact:       Don McCloskey (973) 430-8555 or donald.mccloskey@pseg.com
 
The Following Members of the National Climate Coalition:
       Contact:       Robert Wyman (213) 359-0091 or robert.wyman@lw.com
 
AES is one of the world’s largest global power companies, with 2007 revenues of $13.6 billion. With operations in 29 countries on five continents, AES’s generation and distribution facilities have the capacity to serve 100 million people worldwide. Our 14 regulated utilities amass annual sales of approximately 76,000 GWh and our 124 generation facilities have the capacity to generate approximately 43,000 MW. Our global workforce of 28,000 people is committed to operational excellence and meeting the world’s growing power needs. To learn more about AES, please visit www.aes.com or contact AES media relations at media@aes.com.
       Contact:       Meghan Dotter (703) 682-6670 or meghan.dotter@aes.com

American Honda Motor Co., Inc. is a leader in the development of leading-edge technologies to reduce CO₂ emissions, including advanced gasoline engines, gasoline-electric hybrids, natural gas-powered engines, and hydrogen fuel cells. Founded in Japan in 1948, Honda began operations in the U.S. in 1959 with the establishment of American Honda Motor Co., Inc., Honda’s first overseas subsidiary. Honda began U.S. production of motorcycles in 1979 and automobiles in 1982. The company has invested more than $10.6 billion in its North American operations with 16 major manufacturing facilities, employment of more than 35,000 associates, and annual purchases of more than $18.8 billion in parts and materials from suppliers in North America.   For more information, visit www.honda.com. 
       Contact:       Edward B. Cohen (202) 661-4400 or Edward_Cohen@ahm.honda.com

NRG Energy, Inc., a Fortune 500 company, owns and operates one of the country’s largest and most diverse power generation portfolios. NRG’s 48 plants provide approximately 24,000 megawatts of generation capacity—enough to power nearly 20 million homes. In November 2007, NRG won two of the industry’s highest honors—Platts Industry Leadership and Energy Company of the Year awards. Headquartered in Princeton, NJ, NRG is a member of the U.S. Climate Action Partnership (USCAP), a group of business and environmental organizations calling for mandatory legislation to reduce greenhouse gas emissions. More information is available at www.nrgenergy.com.
       Contact:       Lori Neuman (609) 524-4525 or Lori.Neuman@nrgenergy.com
 

3M is fundamentally a science-based, global, diversified technology company.  We produce thousands of imaginative products, and we’re a leader in scores of markets – from health care and highway safety to office products and optical films for LCD displays. Our success begins with our ability to apply our technologies – often in combination – to an endless array of real-world customer needs. Of course, all of this is made possible by the people of 3M and their singular commitment to make life easier and better for people around the world.   For more information, visit www.3m.com.
       Contact:       Jeff Muffat (612) 991-6003 or jcmuffat@mmm.com

Reliant Energy, Inc. (NYSE:RRI) based in Houston, provides electricity to approximately 1.8 million retail customers primarily in Texas, including residential and small business customers. The company is also one of the largest independent power producers in the nation with more than 14,000 megawatts of power generation capacity across the United States.  These strategically located generating assets use natural gas, fuel oil and coal.  For more information, visit http://www.reliant.com.
       Contact:       Patricia Hammond (713) 497-7723 or phammond@reliant.com

Texas Industries, Inc. (TXI) is the largest producer of cement in Texas and a major cement producer in California. TXI is also a major supplier of construction aggregates, ready-mix concrete and concrete products. For more information, visit www.txi.com. 
       Contact:       Randy Jones (972) 647-6701 or rjones@txi.com