Institute Board Members Provide Congressional Testimony on Climate Bill

Contact: Eric Roston, 202/797-6500 or eric.roston@duke.edu

April 23, 2009

DURHAM, N.C. – Three Nicholas Institute Advisory Board members testified this week before a U.S. House of Representatives committee in support of congressional action to address energy transformation and climate change. Each Board member used the U.S. Climate Action Partnership (USCAP) Blueprint for Legislative Action as a yardstick for evaluating the legislation currently before the committee -- the American Clean Energy and Security Act of 2009, which is co-sponsored by Chairmen Henry Waxman (D-CA) and Ed Markey (D-MA).

Charles O. Holliday Jr., chairman of DuPont, James E. Rogers, chairman, CEO, and president of Duke Energy Corporation, and Frances Beinecke, president of the Natural Resources Defense Council all participated in development of the USCAP proposal and sat for the Committee’s second panel on Wednesday.

Holliday provided an overview about the intersection of climate policy and industry. "Voluntary efforts alone will not solve the climate problem," he said. "We need sound policy that takes broad, coordinated, economically sustainable action across the entire economy... We can not allow the current economic conditions to slow our efforts. I believe this may be the single greatest opportunity to reinvent American industry."

As head of the nation's third largest coal producer, Rogers made constructive recommendations for how the panel might address some of the most difficult decisions in the climate debate, what he called "the case of the missing pages." The Waxman-Markey discussion draft leaves out proposals that would address several key sticking points, such as whether to auction or allocated pollution credits. He weighed in on several other politically unresolved issues, as well: pollution reduction targets, carbon offsets, economic protection, coal technology, and preventing litigation. "I was an early and outspoken advocate of climate legislation," Rogers told the committee. "But just as I have spoken of the need for the United States to move forward to address climate change, I have also discussed the importance of getting carbon legislation right, so it works not only for the environment but also for our customers, our 18,000 employees and millions of investors and the U.S. economy in general."

Beinecke provided context on climate change itself, reiterating peers’ remarks on urgency, the bill itself, and how it compares to the USCAP proposal. "We must act now to begin making serious emission reductions if we are to avoid truly dangerous levels of global warming pollution," Beinecke said. "Climate scientists warn us that we face extreme dangers if global average temperatures are allowed to increase by more than two degrees Fahrenheit from today's levels."

Nicholas Institute leadership lauded the USCAP proposal when it was published in January.

Director Tim Profeta said, “This is a broad coalition that deliberated with great rigor and seriousness. USCAP's work should embolden Americans coming to this pivotal issue for the first time.”

Brian C. Murray, director for economic analysis, said, "USCAP has found an equitable solution to a difficult problem.”