News Release

American Chemistry Council Announces Climate Principles

Key Points Outlined in Written Response Submitted to Chairmen Dingell, Boucher

ARLINGTON, VA (March 20, 2007) – Today the American Chemistry Council (ACC) announced its principles on climate change policy, reflected in ACC’s written response to a letter from Rep. John D. Dingell, Chairman of the House Energy and Commerce Committee, and Rep. Rick Boucher, Chairman of the House Subcommittee on Energy and Air Quality. The February 28th letter from Chairmen Dingell and Boucher solicited recommendations concerning climate legislation being considered by the Committee.  ACC was among 24 business groups to receive the letter, which is available at http://energycommerce.house.gov/Press_110/110nr9.shtml.

“We thank Chairmen Dingell and Boucher for their thoughtful approach to addressing climate change issues and for soliciting our recommendations,” said Jack Gerard, President and CEO of ACC.  “American chemistry brings a unique perspective to the linkage between energy consumption and greenhouse gas emissions: we use energy to save energy.   We have also made unprecedented strides in reducing emissions over the past few decades. The industry is committed to continuing these efforts to reduce greenhouse gas emissions, improve our own energy efficiency, and provide products to help the rest of the economy reduce its GHG footprint.”

Gerard said, for example, the business of chemistry makes building insulation materials that save as much as 40 BTUs of energy for every BTU of energy consumed to make the material. 

In addition, he said, since 1990 the industry has decreased greenhouse gas emission intensity by 30.6 percent and absolute GHG emissions by 10 percent – while increasing production by nearly 30 percent.

“To continue to supply the nation with energy efficient materials, American chemistry must have access to an adequate and affordable supply of lower-carbon natural gas,” Gerard said in the letter. “Climate policies that have the effect of increasing demand for natural gas – one of our industry’s key feedstocks – could have significant ramifications, not only in our sector, but throughout the economy. Over the past decade competition for scarce supplies of natural gas drove prices to record levels, imposing $425 billion in added costs to consumers and contributing to the loss of 3 million U.S. manufacturing jobs. For this reason one of the most important issues, from ACC’s perspective, is the need to address energy policy and supply as part of any domestic climate change legislation,” he wrote to the Chairmen.

Gerard stated that ACC's position on climate change policy is evolving. Last week, ACC Board of Directors voted to consider “specific legislative proposals based on a new set of principles;”  including, among other areas, ACC’s belief that that U.S. climate policy must:  1) encourage development of new sources of lower-carbon energy supply, especially natural gas; 2) provide sufficient time to bring enabling energy technologies to market; 3) include significant government-sponsored research, development and deployment of lower carbon technologies, and 4) link, in some fashion, U.S. implementation of a compulsory climate program with actions taken by other major-emitting nations.
 
In the response to the Committees, ACC also recognized a wide range of potential energy-based reforms that would allow the United States to continue to reduce its greenhouse gas (GHG) “footprint.” These include:

• Opening access to new sources of natural gas supply
• Accelerating commercial development of carbon capture and storage (CCS) technologies
• Promoting advanced nuclear generating capacity
• Implementing energy efficiency and renewable energy programs
• Preventing unsustainable fuel switching
• Investing in highly efficient, commercially ready Combined Heat and Power (CHP) technology
• Funding research, development and deployment into breakthrough technologies