Premise: It puzzled her, I could see.

Hypothesis: She looked puzzled and confused.
Answer: it is not possible to tell

Premise: This was-and remains-an enormous challenge.

Hypothesis: This used to be a challenge but now it is very easy to accomplish.
Answer: no

Premise: We note, however, that they are the subject of considerable controversy.

Hypothesis: Fortunately they have not been the subject of any such controversy.
Answer: no

Premise: Generators respond by gradually reducing their emissions - reducing more than the cap requires early in the program in order to save allowances for use later in the program when the caps decline.

Hypothesis: When the caps decline, the generators increase their emissions.
Answer: no