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No matter when legislation is passed in Washington, or what final shape it takes, climate change regulations are already affecting your business. Twenty-five states now have some form of cap-and-trade program running or under development. Some states are already requiring projects to review their carbon impacts, an entirely new area of analysis. And the Securities and Exchange Commission has just issued new interpretive guidance for publicly traded companies required to disclose climate change information (for an excellent summary of this guidance by White & Case, please click here.)

As we get closer and closer to climate change legislation in the U.S., the advocates for both sides get more and more shrill, and the ratio of signal-to-noise is not improving. With all the vehemence and vitriol, is it possible for the uncommitted to determine what the answer is?

For most companies today, the secret answer is: it doesn't matter. It doesn't matter if manmade climate change is happening now or not. If your company operates in the environmental or energy sector, what matters is the opportunities that are being created. The advocates too often miss the point that our climate change policies will drive us toward:

  • Energy independence
  • American jobs - including manufacturing jobs
  • Advanced energy technology.

Opponents who are worried about the costs of compliance too often miss the fact that for more than 40 years we have only increased our dependence on foreign oil, sending untold trillions of dollars out of the country. Redirecting our spending to the benefit of domestic companies and American jobs can only be a good thing. There's a reason General Electric has added 650 renewable energy jobs to its Schenectady, N.Y., operations - jobs with an average salary of $75,000.

The smart companies aren't waiting for one side or the other to prevail - they're already benefiting from the inevitable movement toward climate change regulation.


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Are you ready?

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New York State has long led the way on climate change regulation. From the early days of the Governor's Greenhouse Gas Task Force through the development of the Regional Greenhouse Gas Initiative, to the inclusion of important climate change considerations in the new State Energy Plan, New York has led the way. You may think that if you're not in the business of energy generation, it doesn't affect you. But controlling fossil fuel emissions from power plants is only the beginning. New York State already requires that projects examine energy use and greenhouse gas emissions as part of the SEQR process -- not only direct emissions, but also indirect emissions caused by your project may need to be evaluated. Depending on your project, you may need to be evaluating your direct energy use as well as the indirect effects of your project. Of course, what triggers significance is undefined -- like a lot of things in SEQR, the lead agency will know it when it sees it. Project sponsors heading into the SEQR process would be well-advised to look at those potential impacts, and be prepared to reduce or mitigate them, early in the process in order to avoid surprises.
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