GLOBAL CLIMATE COALITION GCC MEMORANDUM DATE: November 27, 1991 TO: Interested Parr FROM: John Cohen, RE: Global CilmaW, Coalition Information AM Thank you for requesting information on the Global Climate Coalition (GCC). I've enclosed a GCC membership list and a comprehensive Coalition policy statement. As you may be aware, the GCC is in the process of formalizing to become a more structured organization with much broader resources. I've included background information that explains the formalization process and the direction the new organization is taking. The formalization process is nearly completed, and, if you're interested, I will be able to send you additional information about the GCC soon. Once again, thank you for your interest in the Global Climate Coalition. Please let me know if you have any additional questions or if you would like additional information on the new formalized Coalition. 1331 Pennsylvania Avenue, NW • Suite 1500 - North Lobby • Washington, DC 20004-1703 (202) 637-3161 • Fax: (202) 637-3182 w 2 2 0 2 .i" r 4/ t>" GLOBAL CLIMATE COALITION GLOBAL CLIMATE COALITION MEMBERSHIP (As of November 18, 1991) Board-Level American Electric Power Service Corporation American Iron & Steel Institute American Mining Congress American Petroleum Institute Amoco Corporation Association of American Railroads Association of International Automobile Manufacturers Atlantic Richfield Company Chemical Manufacturers Association CSX Transportation, Inc. Dow Chemical Company Du Pont Company Eastman Kodak Company Edison Electric Institute ELCON Enron Illinois Power Company Kaiser Aluminum & Chemical Corporation Motor Vehicle Manufacturers Association of the United States National Association of Manufacturers National Coal Association Ohio Edison Phillips Petroleum Company Process Gas Consumers Group Southern Company Texaco, Inc. Union Electric Company U.S. Chamber of Commerce General Membership Aluminum Association, Inc. American Gas Association Armco, Inc. -more1331 Pennsylvania Avenue, NW • Suite 1500 - North Lobby • Washington, DC 20004-1703 (202) 637-3161 • Fax: (202) 637-3182 Association of Home Appliance Manufacturers BP America, Inc. Carolina Power & Light Consumers Power Drummond Company, Inc. Duke Power Company LTV Steel Company, Inc. National Lime Association National Rural Electric Cooperative Association Pennsylvania Power & Light Company Portland Cement Association Rubber Manufacturers Association Shell Oil Company Union Carbide Corporation U.S. Council for Energy Awareness* *New Member GLOBAL CLIMATE COALITION GLOBAL CLIMATE COALITION: A PROPOSAL TO REORGANIZE AND STAFF THE COALITION To provide the essential services to the U.S. business community described in the case statement (see attached case statement memorandum), the Global Climate Coalition has developed the reorganization and staffing proposal set out on the following pages. Staffing will be for a full time executive director and an administrator. The vastly streamlined organizational structure will include a Board of Directors and an Operating Committee who will represent a broad industry balance and make key policy decisions. The suggested dues structure provides an opportunity for general membership at $2,500 per year or Board of Directors/Operating Committee memberships ranging from $10,000 to $20,000 per year for corporations, and from $5,000 to $20,000 for trade associations, depending upon revenue category. The start-up budget is tentative; ad hoc funding may be required for special projects such as economic impact and scientific studies, etc. To implement the staffing recommendations proposed by the Coalition full dues support is required. 1331 Pennsylvania Avenue, NW • Suite 1500 - North Lobby • Washington, DC 20004-1703 (202) 637-3161 • Fax: (202) 637-3182 December 18, 1990 GCC ORGANIZATION AND STAFFING PROPOSAL The Coalition has functioned under NAM's 501(C)(6) tax exemption and will file for its own 501(C)(6) exemption once organized. I. BOARD OF DIRECTORS • Board sets policy for the Global Climate Coalition and approves budget. • Board to be composed of CEOs or senior officers of company or trade association. • The Board shall initiate operation when it has membership from at least eight representatives from key industry sectors, such as: Aluminum Appliance Autos Chemical Coal Electronics Broad Based Business Electric Utilities Gas Industry Paper Petroleum Steel Plastics Nuclear • No limit on size of Board. Eligibility to serve on Board keyed to dues structure based on gross revenues. (See IX) • Board meets as necessary to build on high-level dialogue between business and government leaders and set long term goals. • Board elects chair for one year term. consecutive terms. II. OPERATING COMMITTEE A. Size and Composition • Chair can serve maximum of two Operating Committee members shall number not more than 18, with not more than one representative from each board member. • Mix of companies and associations shall be decided by Board of Directors and reflect diverse elements of U.S. industry, as described in the bylaws. • Operating Committee should have broadly balanced representation from key industry sectors, such as: Aluminum Appliance Autos Chemical Coal Electronics Broad Based Business B. Committee Chairs • III. IV. Electric Utilities Gas Industry Paper Petroleum Steel Plastics Nuclear Standing and ad hoc committees shall be chaired by operating committee members. Other committee members may come from general membership. General members may serve as committee vice chairs. SELECTION OF OPERATING COMMITTEE • The Board selects candidates (not to exceed 18) to serve on Operating Committee. General membership ratifies by simple majority of members present. • The Operating Committee selects chair and vice chair for approval by Board. Operating Committee chair and vice chair serve one year terms, not to exceed two consecutive terms. • Operating Committee chair reports to the Board chair. • Vice chair serves as chair in the absence of chair. • Vacancies on Operating Committee are filled by the Board to reflect the need for industry diversity. TERMS OF THE OPERATING COMMITTEE MEMBERS • Operating committee members serve staggered three year terms. One-third of the Committee will be elected each year after the first year. • Selection of terms of first, second and third year Operating Committee members will be decided by a lottery. • So as to insure some turnover, Operating Committee members shall be ineligible for reelection for one year after serving three year terms. V. POLICY DEVELOPMENT AND DISPUTE RESOLUTION A. Clearance Procedures B. VI. • Operating Committee recommends policies to Board consistent with general purposes and principles. • Operating Committee prepares bylaws for Board approval. • Operating Committee prepares statement of general purposes and principles. • General membership ratifies statement of general purposes and principles and approves changes to them when necessary. • Operating Committee has broad authority to clear letters and testimony, set lobbying objectives, fund projects, hire staff and consultants and make administrative decisions. • Chair of Operating Committee has delegated authority to act on behalf of Operating Committee. Such actions must be consistent with established Coalition policy and should include consultation with appropriate committee(s). Voting • Operating Committee endeavors to work by consensus. • Absent consensus, matters in dispute may be referred to the board. The Board shall establish procedures for consideration and disposition of such disputed matters. Voting by fax allowed. GENERAL MEMBERSHIP • The Global Climate Coalition will operate according to a set of principles and bylaws. • Membership eligibility will be determined by Operating Committee in accordance with bylaws. • A general membership group will be created comprised of one member representative from each dues-paying trade association and company that agree to support coalition principles and pay annual dues proposed by Operating Committee, approved by, Board of Directors and ratified by the full membership. • General membership will meet quarterly. • No limit will be set on size of general membership. • General members are eligible to participate on committees. VII. STAFFING RECOMMENDATIONS Whether the Coalition will be able to implement the recommended staffing proposal depends upon the level of dues support. If the level of support warrants an immediate search for an Executive Director and an Administrator, the process will be initiated as soon as possible. If the level of first year dues commitments will only support one permanent staff member, the Board can then decide whether to start a search for an Executive Director or an Administrator. If only the position of Administrator can be filled, the Coalition must continue to rely heavily on existing voluntary efforts, particularly of a company-volunteered chairman/spokesperson, reducing the effectiveness of the organization. • Executive Director/Spokesperson - Salary: $140,000 - 180,000 plus benefits - Experienced corporate or trade association executive - Act as full-time director and spokesperson for the Coalition - Should have strong Capitol Hill, Executive Branch and international experience and/or contacts • Administrator - Salary: $50,000 - 70,000 plus benefits - Role limited to day-to-day administrative activities • Secretary - Salary: $30,000 plus benefits VIII. TENTATIVE START-UP EXPENSE BUDGET RANGE Low Estimate High Estimate (In thousands) • • • • • • • • • • Office Operation with loaned space Office Operation with rented space Executive Director Administrator Travel, entertainment reimb. Secretary Scientific and Economic Research Public relation/media counsel Legal counsel Other Totals: IX. $ $ $ $ $ $ $ $ $ $ 50 40 125 100 140 180 70 50 30 60 30 30 100 100 75 - 100 100 150 20 30 $ 585 - 770 (Loaned Space) $ 645 - 845 (Rented Space) ANNUAL DUES STRUCTURE General Membership Level: $2,500 Sustaining Membership Levels: Associations If less than $1 million in revenues: If between $1 and $10 million in revenues: If greater than $10 million: $ 5,000 $15,000 $20,000 Associations dues can be paid with in-kind contributions for specific contributions as approved by the Board. Sustaining Membership Levels Continued: Companies If less than $1 billion in revenues: If between $1 and $5 billion in revenues: If greater than $5 billion in revenues: X. $10,000 $15,000 $20,000 TRANSITION Until the Operating Committee is established, existing Steering Committee chair, vice chair and subcommittee chairs will have the option of continuing in their posts. Efforts also could be made to obtain loaned services from an existing company or trade association executive until fulltime staff is secured.