Washington (Platts)--18Jan2008

A group of major US corporations and environmental organizations
supporting a national cap on greenhouse gas emissions Friday said Congress can
take immediate and cost-effective steps to reduce GHG gases even if it is
unable to pass a cap-and-trade bill this year.

"The US needs to act now...not wait for other countries," said Helen
Howes, the vice president of environment, health and safety at Exelon, one of
a half-dozen electric utilities and energy companies that form the 33-member
US Climate Action Partnership.

Howes was joined by other USCAP members from Dupont, the Pew Center on
Global Climate Change and The Nature Conservancy at a conference organized by
the National Council for Science and the Environment held in Washington. To
achieve the 450-550 parts per million limit of GHG in the atmosphere
recommended by scientists, the US must pursue emission reductions of 60%
to 80% by 2050, the group said.

"This is cost-effective and achievable and should avoid long-term dangers
related to climate change," said Tim Juliani of the Pew Center.

While the group admits it is uncertain that Congress will enact a
climate-change bill this year, Juliani said there are other actions lawmakers
can take this year to encourage industry to cut GHG emissions. They include
establishing a national GHG inventory and source registry that would help set
emissions reduction targets when a federal cap and emissions trading program
do become law.

Congress also should work on policies this year to ensure that company
actions taken now to reduce GHG emissions will be recognized under a federal
cap, Juliani said. Further, he said lawmakers should pursue aggressive
research and development for low-emissions and emission-reducing technologies,
such as carbon capture and sequestration and a "stable long-term financing"
plan to keep development of these technologies on track. This could include
investment tax credits and loan guarantees.

The US Senate as early as March could vote on an economy-wide GHG
cap-and-trade bill to cut emissions 70% below 2005 levels by 2050. A key
committee in the US House of Representative is expected to draft another
comprehensive bill this year.

Exelon is working with USCAP to lobby Congress to get a climate change
bill done "because the science is compelling," said Howes. "We've got to get
the job done. We've got to find a way to reduce GHG emissions. It's not going
to be easy or cheap [but] we've got to do it."

--Cathy Cash, cathy_cash@platts.com