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FOR IMMEDIATE RELEASE: July 2, 2008

Schumer Pushes To Give Corning Incorporated Tools Needed To Off-Set Rising Costs Of Producing Carbon-Intensive Goods And Help Keep A Competitive Edge In Global Market

Corning Incorporated Has Long Been a Hotbed for Technological Innovation and Economic Development but Foreign Competition Under a Cap and Trade System Could Hinder Growth and Development Schumer Provision Would Compensate American Companies For Increased Costs of Producing Carbon-Intensive Goods - Offset Higher Prices and Even the Playing Field Schumer Visits Corning's Sullivan Park Research Center with Local Leaders and Pushes to Ensure Upstate Companies Can Thrive in Increasingly Global Market

With companies across Upstate New York struggling in the face of increasing global competition, U.S. Senator Charles E. Schumer today visited Corning Incorporated’s Sullivan Park Research Center and touted a provision he introduced to the Lieberman-Warner Climate Security Act of 2008 to ensure that manufacturers like Corning can remain competitive in a globalized market once the United States implements a cap and trade system for carbon. Corning has long been one of the most promising economic and technological powerhouses across Upstate, and Schumer is leading efforts in the Senate to ensure that any comprehensive climate change legislation does not inadvertently affect global competitiveness for Corning and other energy-intensive U.S. manufacturers.
 
“From the glass envelope that brought affordable lighting to the masses, to television tubes that changed the world of entertainment and education, Corning Incorporated has consistently brought the Southern Tier and all of Upstate New York to the very edge of technological innovation,” said Schumer. “At a time when we have to get serious about reducing carbon emissions across the globe, we have to be sure that there are some simple provisions in place to protect companies like Corning, who produce carbon-intensive goods. The legislation I pushed this year in the Senate, and which I’ll continue to fight for in the coming year, would ensure that in the face of such daunting environmental concerns, Corning can remain competitive and that the jobs and livelihood of this dynamic Southern Tier company are always protected.”
 
“Senator Schumer’s sponsorship of the export amendment to the climate change legislation will help ensure that Corning and other energy-intensive manufacturers are not placed at a competitive disadvantage in the global marketplace. We greatly appreciate the senator’s strong advocacy for growth of New York State’s economy and, in particular, his support of upstate New York businesses.  We look forward to continuing our close working relationship with Senator Schumer,” said Wendell P. Weeks, chairman and chief executive officer of Corning Incorporated.  
 
Corning Incorporated, headquartered in Steuben County, is a worldwide leader in specialty glass and ceramics, having produced cutting-edge, energy intensive technology in the fields of lighting, television, emissions control, air quality, optical fiber, and information displays.
 
However, once the United States implements a cap and trade system for carbon, the cost of producing such carbon-intensive goods will climb, particularly affecting energy intensive companies like Corning who will see huge cost increases for energy. This increased cost of doing business in a cap and trade market places these companies at a competitive disadvantage with other manufacturers in countries that do not have comparable greenhouse gas emission controls.
 
While the need for comprehensive legislation to reduce GHG emissions and tackle climate control is dire, Schumer noted today that simple provisions can be put into place to ensure we protect jobs and the local economy across Upstate, as well as the environment.
 
Originally the climate change legislation proposed by the Senate earlier this year provided only minimal protection for these companies in the form of “free allowances” for imports, but excluding exports. Companies could then sell these reserve allowances to compensate for the increased costs of producing carbon-intensive goods. With Corning, Inc. and similar companies depending heavily on exports for their continued success, Schumer authored an amendment to the legislation that would significantly offset the increased cost of energy for exported goods by providing allowances for imports and exports.
 
“By giving companies like Corning allowances for both imports and exports, we can off-set the higher price of carbon-intensive goods from the US against those manufactured in countries that don’t regulate carbon emissions, and allow our absolutely critical manufacturers to remain competitive and thrive,” said Schumer.
 
A cap and trade system for greenhouse gas emissions works by creating a financial incentive to reduce emissions. After an environmental regulator assigns a cap on emissions to a certain group of polluters, such as power plants, the cap is then divided into individual permits which dictate how much pollution one plant is able to emit. Individual companies are then free to buy and sell these permits in order to draw a profit, while cutting back on GHG emissions. While the system is proven to make major strides in reducing greenhouse gases, energy intensive companies that rely on carbon emissions to develop their products worry that the cost of producing these good will climb too high and they will not be able to remain competitive against manufacturers in countries without emissions limits.

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