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American Federation of Labor and Congress of Industrial Organizations
EXECUTIVE COUNCIL
AMERICAN FEDERATION OF LABOR
815 Sixteenth Street, N.W.
JOHN J. SWEENEY
RICHARD L. TRUMKA
LINDA CHAVEZ-THOMPSON
Washington, D.C 20006
PRESIDENT
SECRETARY-TREASURER
EXECUTIVE VICE PRESIDENT
(202) 637-5000
Edward T. Hanley
Vincent R. Sombrotto
Gerald W. McEntee
John T. Joyce
&
AFL
CIO
Morton Bahr
Robert A. Georgine
Gene Upshaw
Jay Mazur
Lenore Miller
CONGRESS OF INDUSTRIAL
John J. Barry
Moe Biller
Frank Hanley
James J. Norton
Michael Sacco
Ron Carey
Arthur A. Coia
Frank Hurt
Gloria T. Johnson
Douglas H. Dority
George F. Becker
Stephen P. Yokich
J. Randolph Babbitt
Clayola Brown
M.A. "Mac" Fleming
Carolyn Forrest
Pat Friend
Michael Goodwin
Joe L. Greene
Sonny Hall
Sumi Haru
Carroll Haynes
James LaSala
William Lucy
Leon Lynch
Douglas J. McCarron
A.L. "Mike" Monroe
Arthur Moore
Arturo S. Rodriguez
Robert A. Scardelletti
Robert E. Wages
Jake West
Alfred K. Whitehead
Andrew L. Stern
Edward L. Fire
Martin J. Maddaloni
John M. Bowers
Sandra Feldman
R. Thomas Buffenbarger
Boyd D. Young
Dennis Rivera
March 30, 1998
Dr. Janet Yellen, Chair
Council of Economic Advisers
17th and Pennsylvania Avenue, NW
Room 314
Washington, DC 20502
Dear Dr. Yellen,
As you know from our early meetings on climate change, the AFL-CIO has been concerned for
some time about how the Administration's plan to tackle this problem is developing. We have
said in many fora that we support a program that will: (1) assure global environmental repair, by
requiring firm commitments from every member of the world community; (2) provide no perverse
incentives, but rather provide incentives and mechanisms that reduce pollution here and create
higher global standards both environmentally and economically; and (3) explicitly protect against
economic upheaval and loss to U.S. workers.
On first read, the plan you outlined in your testimony before the Commerce Committee on March
4 appears to address several important concerns. I want to thank you for being forthright in your
presentation and for providing needed insight into the Administration's thinking on this difficult
topic. We appreciate having additional information to consider, as well as a more clearly
developed picture to react to.
On closer examination, we believe that there are problems with the analysis you presented. In
short, your testimony constructs a rosy, low-cost scenario, based upon a series of optimistic -
and frequently, poorly substantiated - assumptions about electricity deregulation, an
international emissions permit trading regime linked to joint implementation agreements and Clean
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