11.1 Preamble

Climate change requires action at all levels of government, internationally, nationally and locally, and by citizens around the world. Many nations have committed to actions to mitigate the impacts of global climate change, because mitigating climatic changes through reductions in greenhouse gas (GHG) emissions will have significant long-term benefits. The United States is in the midst of an ongoing national dialogue regarding climate change and how to address the nation’s greenhouse gas emissions without jeopardizing national or regional economies. The federal government should have a full understanding of potential costs and benefits of climate change mitigation policies and should share those with the public. There is some likelihood that Congress will address a national greenhouse gas program, and the Governors recognize that states and our citizens will be significantly impacted by whatever actions are ultimately agreed upon. Our nation must take well-considered action on this issue and we must do so without unduly harming our economic well-being.

11.2 State Role

States are currently responsible for implementing national clean air policies and must be partners in any relevant federal policy discussions on global climate change. It is important that the federal government recognize that states have a leadership role given their authority over utilities, land use, transportation, taxation, and other policy areas affecting the environment.

Many states are implementing numerous state and regional initiatives to address the levels of greenhouse gas emissions. As examples, some states are pursuing various options, including (1) energy efficiency and greenhouse gas reduction requirements for utilities, efficiency standards for buildings and appliances, flexible, market-based emissions cap and trade programs for power plants, and a wide variety of water and energy conservation measures; (2) fostering energy-efficient transportation improvements and mass transit; and (3) adopting fiscal policies that encourage conservation and renewable forms of energy. Decisions to pursue these initiatives are based on the analysis conducted by each state or region. Some analyses have documented that these initiatives can have a potentially minimal economic impact to customer rates and bills, which has the potential to be offset by the economic benefits accrued from the investment in clean or alternative energy supplies. Governors urge the federal government to recognize state-based activities, support their further development, and not preempt or dilute their effectiveness.

11.3 Recommendations on Domestic Policy

The U.S. economy is heavily dependent on consumption of fossil fuels to produce energy, and the burning of fossil fuels is one of the largest sources of carbon dioxide and other greenhouse gases. Considering the evidence and the risks of both overreaction and underreaction to climate change, the Governors recommend that the federal government begin to curtail the emissions of greenhouse gases through a program covering multiple sectors of our economy. The Governors also recommend that any escalation of reductions be achievable without undue harm to the national or regional economies and that states have an active role in the implementation of any program impacting our citizens.

Currently, eighty-five percent of the nation's energy needs are met through the burning of fossil fuels. Placing a federal limit on greenhouse gas emissions will cause the cost of energy production to increase in proportion to the greenhouse gases emitted, with potentially negative cost impacts on consumers and business that use high-GHG energy sources. Therefore, the United States must commit itself to a large investment into the research and development of new, alternative, cleaner energy sources as well as energy efficiency and conservation technologies and practices to mitigate the costs to consumers and prevent regional or state impact disparities.

It is important that the federal government’s approach include the means to incentivize private sector investment in Research Development and Deployment of these alternatives. Governors also recommend that the federal government continue to research methods of accurately measuring, estimating, monitoring, and verifying emissions and reduced emissions of carbon dioxide as well as other greenhouse gases to support reduction targets.

The Governors further recommend that the federal government continue to improve scientific understanding of global climate change and how states can adapt to changing climatic conditions. The research should include potential impacts of climate change, including impacts on federal, state, and local infrastructure as well as impacts to natural systems at the local and regional scale. Additionally, predicted changes to the global climate from the impact of greenhouse gas emissions could dramatically affect water resources. While deep reductions in greenhouse gas emissions are needed to address climate change, states and the federal government must also work together on planning adaptations to water quality and quantity management programs to account for these predicted impacts.

To reduce GHG intensity or absolute GHG emissions, there are a number of short-term, mid-term, and long-term options available. Many of these options have “co-benefits,” such as reducing the emissions of other pollutants; placing a greater overall emphasis on energy efficiency; and creating new jobs through investment in renewable and alternative forms of energy. In addition to these co-benefits of reducing greenhouse gas emissions, Governors recognize the ability of these options to reduce our dependence on foreign sources of energy and to increase domestic energy supply. The Governors recommend taking advantage of options that are cost-effective and offer other social, environmental, and economic co-benefits beyond reducing greenhouse gas emissions. The Governors also recommend that federal programs acknowledge that some greenhouse gases—particularly methane—have value as commodity products, at the appropriate purity and concentration. Programs should emphasize as well the co-benefit of diverting greenhouse gases to productive economic use where possible.

As the United States considers policies to reduce greenhouse gas emissions, it must also promote the important national goal of increasing our energy independence and continue to meet increasing demand for energy services. Governors support federal climate change policies that are consistent with NGA policy NR-18, Comprehensive National Energy and Electricity Policy.

As with many other emerging policy areas, any national program addressing climate change should be informed by and benefit from the wide and varied activities of the states, as well as the experiences of the federal government to date. The Governors recognize federal, state, and local agencies, and the private sector, for having launched numerous initiatives that already have resulted in emission reductions through promoting energy efficiency, renewable energy resources, alternative energy systems, low-impact energy sources, and clean energy technologies.

The Governors are committed to working in partnership with the federal government, businesses, environmental groups, and others to develop and implement programs that reduce greenhouse gas emissions in conjunction with conserving energy, protecting the environment, and strengthening the economy. The federal government should be supportive of state initiatives to stabilize and reduce greenhouse gas emissions because they are designed to best address the specific issues within the region or state.

In the development and implementation of federal policy options, each state must retain the flexibility to tailor an approach that makes the most sense given its individual socioeconomic and geographic conditions. In addition, the Governors urge that those states that have successfully achieved reductions of greenhouse emissions receive appropriate credit for their early actions. The Governors support and encourage early and active congressional involvement in any climate change-related activities undertaken by federal agencies.

11.4 Recommendations on International Policy

Governors recognize that climate change is a global issue that cannot be sufficiently addressed solely at the state and local level, and the importance of the United States’ participation in a global effort to address the impacts of climate change. The United States should establish itself as a leader in achieving emission reductions by engaging in international discussions and better demonstrating successes achieved within the United States. In the course of future international negotiations, the United States should seek shared international responsibility for addressing climate change while protecting U.S. economic interests. The Governors recommend that, in the context of international negotiations, the federal government continue to seek the advice of state and local officials and non-governmental entities to assess the potential economic and environmental consequences of proposed policies and measures, including a thorough and broadly accepted analysis of costs and benefits.

Time limited (effective Annual Meeting 2008–Annual Meeting 2010).
Adopted Annual Meeting 1990; revised Annual Meeting 1994, Annual Meeting 1996, and Annual Meeting 1998; revised and reaffirmed Annual Meeting 2000; revised Annual Meeting 2002, Annual Meeting 2004, Annual Meeting 2006, and Annual Meeting 2008 (based on former Policy D-15).