Organization: Berkshire Hathaway Inc.

Year: 2015

Description: RESOLVED: That Berkshire Hathaway, Inc. (“Berkshire”) establish reasonable, quantitative goals for reduction of greenhouse gas emissions at its energy-generating holdings; and publish a report to shareholders by January 31, 2016 (at reasonable cost and omitting proprietary information) on how it will achieve these goals – including possible plans to retrofit or retire existing coal-burning plants at Berkshire-held companies.

SUPPORTING STATEMENT:

The electric power sector accounts for more carbon dioxide (“CO2”) emissions than any other sector – more, even, than transportation or industry. Coal-fired power creates a disproportionate amount of these emissions. According to the U.S. Environmental Protection Agency (“EPA"): “Although coal accounts for about 75% of CO2 emissions from the sector, it [only] represents about 39% of the electricity generated in the United States.”

Berkshire Hathaway’s MidAmerican Energy Holdings Company (“MidAmerican”) generates roughly 45% of its power from coal-fired sources. Despite significant new investments in renewable generation, MidAmerican (now a subsidiary of Berkshire Hathaway Energy) was the 6th largest coal user and generated the 7th highest CO2 emissions of any U.S. utility in 2012 (2014 report by Ceres, using 2012 data). Consequently, MidAmerican’s status as one of the top 7 carbon polluters in the U.S. power sector is harmful to Berkshire’s corporate reputation and direction.

International climate experts assert that developed nations must reduce their carbon output 80% by 2050 in order to maintain a safe and livable climate. While the regulations set forth by the EPA contribute to this effort, much deeper carbon cuts will be called for (especially, perhaps, from the electric power sector). This threatens the viability of coal plant investments.

The EPA has initiated a series of tough rules and regulations designed to curb harmful emissions from coal-fired power plants. Bernstein Research estimates that as a result of these new regulations, 15% of coal-fired power plants will be forced to retire or will require substantial new investment to remain viable.

In response to these rules, many of MidAmerican’s peers have established plans to retire coal-fired plants – including AEP, Ameren, Calpine Corporation, Progress Energy, Southern Company, and Xcel Energy. These forward-looking companies recognize that using natural gas, efficiency, and renewable energy are poised to be more profitable than retrofitting outdated coal-fired plants.

Also in response to these rules, other sector peers – such as American Electric Power, Consolidated Edison, Duke Energy, Entergy, Exelon, and National Grid – have set measurable and quantifiable targets for greenhouse gas emission reductions. Still other peers – including CMS Energy, NiSource, Pinnacle West, and PSEG Power – have set greenhouse gas intensity targets.

Berkshire Hathaway Energy’s website asserts: “We will set challenging goals and assess our ability to continually improve our environmental performance.”

Therefore, in alignment with Berkshire’s pronouncements and its forward-looking investments in renewable energy, shareholders ask Berkshire Hathaway Energy to disclose its goals to reduce CO2 emissions. Please vote FOR this reasonable request for planning, transparency, and risk mitigation.