Potential Legislative and Regulatory Actions Addressing Climate Change Sample Clauses

Potential Legislative and Regulatory Actions Addressing Climate Change. Recent scientific studies have suggested that emissions of certain gases, commonly referred to as “greenhouse gases” and including carbon dioxide and methane, may be contributing to warming of the earth’s atmosphere. In December 2009, the EPA issued proposed regulations that would require a reduction in emissions of greenhouse gases from motor vehicles and also could require permits for emitting greenhouse gas from certain stationary sources such as ours. Congress has also been considering various bills that would establish an economy-wide cap-and-trade program to reduce U.S. emissions of greenhouse gases and at least one-third of the states, either individually or through multi-state regional initiatives, have already taken legal measures to reduce emissions of greenhouse gases, primarily through the planned development of greenhouse gas emission inventories and/or greenhouse gas cap and trade programs. As an alternative to reducing emission of greenhouse gases under cap and trade programs, Congress may consider the implementation of a program to tax the emission of carbon dioxide and other greenhouse gases. The net effect of such legislation would be to impose increasing costs on the combustion of carbon-based fuels such as oil, refined petroleum products and natural gas. Passage of climate change legislation or other regulatory initiatives by Congress or various states of the U.S. or the adoption of regulations by the EPA or analogous state agencies that regulate or restrict emissions of greenhouse gases in areas in which the Program LLCs and the Wildcat Program LLC conduct business, could increase the costs of the Program LLCs’ and the Wildcat Program LLC’s operations, including new or increased costs to operate and maintain their equipment and facilities, install new emission controls on their equipment and facilities, acquire allowances to authorize their greenhouse gas emissions, pay taxes related to their greenhouse gas emissions and administer and manage a greenhouse gas emissions program. Moreover, incentives to conserve energy or use alternative energy sources could reduce demand for natural gas and oil. Reductions in the Company’s revenues or increases in the Company’s expenses as a result of climate control initiatives could have adverse effects on their respective businesses, financial position, results of operations and prospects.