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THE U.S. CLIMATE ACTION PARTNERSHIP HEARING BEFORETHE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED ELEVENTH CONGRESS FIRST SESSION JANUARY 15, 2009 Serial No. 111–1 ( Printed for the use of the Committee on Energy and Commerce energycommerce.house.gov VerDate Nov 24 2008 15:26 May 20, 2011 Jkt 037690 PO 00000 Frm 00001 Fmt 6011 Sfmt 6011 P:\MY DOCS\HEARINGS 111\111TH RESEARCH\111-1 CHRIS T H E U . S . C L I M A T E A C T I O N P A R T N E R S H I P VerDate Nov 24 2008 15:26 May 20, 2011 Jkt 037690 PO 00000 Frm 00002 Fmt 6019 Sfmt 6019 P:\MY DOCS\HEARINGS 111\111TH RESEARCH\111-1 CHRIS THE U.S. CLIMATE ACTION PARTNERSHIP HEARING BEFORETHE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED ELEVENTH CONGRESS FIRST SESSION JANUARY 15, 2009 Serial No. 111–1 ( Printed for the use of the Committee on Energy and Commerce energycommerce.house.gov U.S. GOVERNMENT PRINTING OFFICE 63–514 PDF WASHINGTON : 2012 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Nov 24 2008 15:26 May 20, 2011 Jkt 037690 PO 00000 Frm 00003 Fmt 5011 Sfmt 5011 P:\MY DOCS\HEARINGS 111\111TH RESEARCH\111-1 CHRIS COMMITTEE ON ENERGY AND COMMERCE HENRY A. WAXMAN, California Chairman JOHN D. DINGELL, Michigan JOE BARTON, Texas Chairman Emeritus Ranking Member EDWARD J. MARKEY, Massachusetts RALPH M. HALL, Texas RICK BOUCHER, Virginia FRED UPTON, Michigan FRANK PALLONE, JR., New Jersey CLIFF STEARNS, Florida BART GORDON, Tennessee NATHAN DEAL, Georgia BOBBY L. RUSH, Illinois ED WHITFIELD, Kentucky ANNA G. ESHOO, California JOHN SHIMKUS, Illinois BART STUPAK, Michigan JOHN B. SHADEGG, Arizona ELIOT L. ENGEL, New York ROY BLUNT, Missouri GENE GREEN, Texas STEVE BUYER, Indiana DIANA DEGETTE, Colorado GEORGE RADANOVICH, California Vice Chairman JOSEPH R. PITTS, Pennsylvania LOIS CAPPS, California MARY BONO MACK, California MIKE F. DOYLE, Pennsylvania GREG WALDEN, Oregon JANE HARMAN, California LEE TERRY, Nebraska JAN SCHAKOWSKY, Illinois MIKE ROGERS, Michigan HILDA L. SOLIS, California SUE WILKINS MYRICK, North Carolina CHARLES A. GONZALEZ, Texas JOHN SULLIVAN, Oklahoma JAY INSLEE, Washington TIM MURPHY, Pennsylvania TAMMY BALDWIN, Wisconsin MICHAEL C. BURGESS, Texas MIKE ROSS, Arkansas MARSHA BLACKBURN, Tennessee ANTHONY D. WEINER, New York PHIL GINGREY, Georgia JIM MATHESON, Utah STEVE SCALISE, Louisiana G.K. BUTTERFIELD, North Carolina CHARLIE MELANCON, Louisiana JOHN BARROW, Georgia BARON P. HILL, Indiana DORIS O. MATSUI, California DONNA CHRISTENSEN, Virgin Islands KATHY CASTOR, Florida JOHN P. SARBANES, Maryland CHRISTOPHER MURPHY, Connecticut ZACHARY T. SPACE, Ohio JERRY MCNERNEY, California BETTY SUTTON, Ohio BRUCE BRALEY, Iowa PETER WELCH, Vermont (II) VerDate Nov 24 2008 15:26 May 20, 2011 Jkt 037690 PO 00000 Frm 00004 Fmt 0486 Sfmt 0486 P:\MY DOCS\HEARINGS 111\111TH RESEARCH\111-1 CHRIS C O N T E N T S Page Hon. Frank Pallone, Jr., a Representative in Congress from the State of New Jersey, opening statement .......................................................................... 1 Prepared statement .......................................................................................... 3 Hon. Ed Whitfield, a Representative in Congress from the Commonwealth of Kentucky, opening statement ......................................................................... 6 Hon. Lois Capps, a Representative in Congress from the State of California, opening statement ................................................................................................ 6 Hon. John Shimkus, a Representative in Congress from the State of Illinois, opening statement ................................................................................................ 7 Hon. Jane Harman, a Representative in Congress from the State of Cali- fornia, opening statement .................................................................................... 8 Hon. John B. Shadegg, a Representative in Congress from the State of Ari- zona, opening statement ...................................................................................... 9 Hon. Doris O. Matsui, a Representative in Congress from the State of Cali- fornia, opening statement .................................................................................... 11 Hon. Greg Walden, a Representative in Congress from the State of Oregon, opening statement ................................................................................................ 12 Hon. Donna M. Christensen, a Representative in Congress from the Virgin Islands, opening statement ................................................................................. 13 Hon. Marsha Blackburn, a Representative in Congress from the State of Tennessee, opening statement ............................................................................ 14 Hon. Zachary T. Space, a Representative in Congress from the State of Ohio, opening statement ...................................................................................... 15 Hon. Phil Gingrey, a Representative in Congress from the State of Georgia, opening statement ................................................................................................ 16 Hon. Betty Sutton, a Representative in Congress from the State of Ohio, opening statement ................................................................................................ 17 Hon. John D. Dingell, a Representative in Congress from the State of Michi- gan, opening statement ....................................................................................... 18 Hon. Bobby L. Rush, a Representative in Congress from the State of Illinois, opening statement ................................................................................................ 18 Hon. Michael C. Burgess, a Representative in Congress from the State of Texas, opening statement .................................................................................... 19 Hon. Gene Green, a Representative in Congress from the State of Texas, prepared statement .............................................................................................. 20 Hon. Janice D. Schakowsky, a Representative in Congress from the State of Illinois, opening statement .............................................................................. 21 Hon. John P. Sarbanes, a Representative in Congress from the State of Maryland, opening statement ............................................................................. 22 Hon. Roy Blunt, a Representative in Congress from the State of Missouri, opening statement ................................................................................................ 23 Hon. G.K. Butterfield, a Representative in Congress from the State of North Carolina, opening statement ............................................................................... 25 Hon. Tim Murphy, a Representative in Congress from the Commonwealth of Pennsylvania, opening statement ................................................................... 25 Hon. Henry Waxman, a Representative in Congress from the State of Cali- fornia, opening statement .................................................................................... 27 Hon. Joe Barton, a Representative in Congress from the State of Texas, opening statement ................................................................................................ 28 Hon. Edward J. Markey, a Representative in Congress from the Common- wealth of Massachusetts, opening statement .................................................... 30 Hon. Fred Upton, a Representative in Congress from the State of Michigan, opening statement ................................................................................................ 31 (III) VerDate Nov 24 2008 15:26 May 20, 2011 Jkt 037690 PO 00000 Frm 00005 Fmt 5904 Sfmt 5904 P:\MY DOCS\HEARINGS 111\111TH RESEARCH\111-1 CHRIS IV Page WITNESSES Jeffrey R. Immelt, Chairman and Chief Executive Officer, General Electric ..... 34 Prepared statement .......................................................................................... 36 Answers to submitted questions1 ................................................................... Jim Rogers, Chairman, President, and Chief Executive Officer, Duke Energy . 42 Prepared statement .......................................................................................... 43 Answers to submitted questions ...................................................................... 146 Frances Beinecke, President, Natural Resources Defense Council ..................... 52 Prepared statement .......................................................................................... 54 Answers to submitted questions ...................................................................... 154 Fred Krupp, President, Environmental Defense Fund ......................................... 57 Prepared statement .......................................................................................... 58 Answers to submitted questions ...................................................................... 172 Eileen Claussen, President, Pew Center on Global Climate Change .................. 61 Prepared statement .......................................................................................... 62 Answers to submitted questions1 ................................................................... Peter A. Darbee, Chairman, Chief Executive Officer, and President, PG&E Corporation ........................................................................................................... 67 Prepared statement .......................................................................................... 68 Answers to submitted questions ...................................................................... 183 Preston Chiaro, Chief Executive Officer, Rio Tinto .............................................. 72 Prepared statement .......................................................................................... 73 Answers to submitted questions ...................................................................... 192 James Mulva, Chairman and Chief Executive Officer, Conoco-Phillips ............. 79 Prepared statement .......................................................................................... 80 Answers to submitted questions ...................................................................... 206 Jonathan Lash, President, World Resources Institute2 ....................................... Prepared statement .......................................................................................... 85 Answers to submitted questions ...................................................................... 221 George Nolen, President and Chief Executive Officer, Siemens Corporation2 .. Prepared statement .......................................................................................... 91 Answers to submitted questions ...................................................................... 239 John Rowe, President and Chief Executive Officer, Exelon Corporation2 ......... Prepared statement3 ........................................................................................ Answers to submitted questions ...................................................................... 252 David Crane, President and Chief Executive Officer, NRG Energy, Inc.2 ......... Prepared statement .......................................................................................... 96 Answers to submitted questions ...................................................................... 266 Mark Tercek, President and Chief Executive Officer, The Nature Conser- vancy2 ................................................................................................................... Prepared statement .......................................................................................... 100 Answers to submitted questions ...................................................................... 278 Jeffry E. Sterba, Chairman of the Board and Chief Executive Officer, PNM Resources2 ............................................................................................................ Prepared statement .......................................................................................... 106 Answers to submitted questions ...................................................................... 290 SUBMITTED MATERIAL Letter of February 19, 2009, from United States Climate Action Partnership, to Hon. Henry Waxman and Hon. John Dingell ............................................... 306 1 Mr. Immelt and Ms. Claussen did not respond to submitted questions for the record. 2 Messrs. Lash, Nolen, Rowe, Crane, Tercek, and Sterba did not present oral statements at the hearing. 3Mr. Rowe did not submit a prepared statement for the record. VerDate Nov 24 2008 15:26 May 20, 2011 Jkt 037690 PO 00000 Frm 00006 Fmt 5904 Sfmt 5904 P:\MY DOCS\HEARINGS 111\111TH RESEARCH\111-1 CHRIS THE U.S. CLIMATE ACTION PARTNERSHIP THURSDAY, JANUARY 15, 2009 HOUSE OF REPRESENTATIVES, COMMITTEE ON ENERGY AND COMMERCE, Washington, DC. The committee met, pursuant to call, at 9:15 a.m., in room 2123, Rayburn House Office Building, Hon. Henry Waxman (chairman of the committee) presiding. Present: Representatives Waxman, Dingell, Markey, Pallone, Rush, Eshoo, Stupak, Green, DeGette, Capps, Doyle, Harman, Schakowsky, Gonzalez, Inslee, Baldwin, Matheson, Butterfield, Melancon, Barrow, Hill, Matsui, Christensen, Castor, Sarbanes, Murphy of Connecticut, Space, McNerney, Sutton, Braley, Welch, Barton, Hall, Upton, Whitfield, Shimkus, Shadegg, Blunt, Pitts, Bono, Walden, Terry, Rogers, Murphy of Pennsylvania, Burgess, Blackburn, and Gingrey. Staff Present: Phil Barnett, Staff Director; Kristin Amerling, Chief Counsel; Karen Lightfoot, Communications Director and Sen- ior Policy Advisor; Greg Dotson, Chief Counsel, Energy and Envi- ronment; Alexandra Teitz, Senior Counsel; Lorie Schmidt, Senior Counsel; Earley Green, Chief Clerk; Caren Auchman, Communica- tions Associate; Zhongrui ‘‘JR’’ Deng, Chief Information Officer; Rob Cobbs, Policy Analyst; Matt Weiner, Special Assistant; Alex Barron, Professional Staff; Melissa Bez, Professional Staff; Carla Hultberg, Deputy Clerk for Technology and Communication; Caitlin Haberman, Staff Assistant; and Matt Eisenberg, Staff As- sistant; Amanda Mertens Campbell, Minority Counsel; Andrea Spring, Minority Professional Staff; Jerry Couri, Minority Profes- sional Staff; Peter Spencer, Minority Professional Staff; and Gar- rett Golding, Minority Legislative Analyst. Mr. WAXMAN. The meeting of the Committee will please come to order. We are here today for a hearing. And before we even call our witnesses in the room, we are going to recognize members for opening statements. Mr. Pallone, are you prepared for your opening statement? Mr. PALLONE. Sure. Mr. WAXMAN. The gentleman is recognized for 5 minutes. OPENING STATEMENT OF HON. FRANK PALLONE, JR., A REP- RESENTATIVE IN CONGRESS FROM THE STATE OF NEW JER- SEY Mr. PALLONE. Thank you, Mr. Chairman. I want to first thank you all for—I was going to say thank all the panel, but they are not here yet, so I will forego that. (1) VerDate Nov 24 2008 15:26 May 20, 2011 Jkt 037690 PO 00000 Frm 00007 Fmt 6633 Sfmt 6633 P:\MY DOCS\HEARINGS 111\111TH RESEARCH\111-1 CHRIS 2 The U.S. Climate Action Partnership, USCAP, has called for leadership in calling for national legislation to slow, stop, and re- verse the growth in greenhouse gas emissions. It is encouraging to see such a broad coalition of leaders from the energy industry, fi- nancial services, and the environmental community working to- gether to reduce carbon emissions. Everyone here understands the serious threat global climate change represents to the world. The Fourth Assessment Report of the Intergovernmental Panel on Climate Change predicted serious risks and damages to species, ecosystems, and human infrastructure if action is not taken to reduce emissions. It is time for Congress to pass legislation that will set the necessary emission reduction targets and will ensure we meet those targets in the short and long term. We cannot afford to wait another year to act. Thank you, Mr. Chairman. [The prepared statement of Mr. Pallone follows:] VerDate Nov 24 2008 15:26 May 20, 2011 Jkt 037690 PO 00000 Frm 00008 Fmt 6633 Sfmt 6633 P:\MY DOCS\HEARINGS 111\111TH RESEARCH\111-1 CHRIS 3 VerDate Nov 24 2008 15:26 May 20, 2011 Jkt 037690 PO 00000 Frm 00009 Fmt 6633 Sfmt 6633 P:\MY DOCS\HEARINGS 111\111TH RESEARCH\111-1 CHRIS 63514.001 4 VerDate Nov 24 2008 15:26 May 20, 2011 Jkt 037690 PO 00000 Frm 00010 Fmt 6633 Sfmt 6633 P:\MY DOCS\HEARINGS 111\111TH RESEARCH\111-1 CHRIS 63514.002