2009/07/15 ENE Releases Summary Analysis of ACES Act Press
MEDIA ADVISORY
For Immediate Release
July 16, 2009
Contact: Emily Avery-Miller, Manager, Communications (207) 236-6470
ENE Release Summary Analysis of ACES Act
ROCKPORT, ME --The American Clean Energy and Security Act of 2009 (“ACES” or the “Act”), or H.R. 2454, was passed by the House of Representatives on June 26th. The Act sets forth an ambitious and comprehensive reform of U.S. climate and energy policy and charts the course to lower emissions and a sustainable clean technology future.
ACES is a complex and detailed piece of legislation covering many issues related to regulating and re-shaping energy and climate policy. ENE has created a summary of the Act including (1) a brief overview of the major elements of the Act and (2) a detailed section-by-section analysis. The summary is designed to be an informative and accessible resource on this landmark legislation, for use by stakeholders, media and the public.
The bill’s backbone is a declining economy-wide cap on greenhouse gas emissions that will put the market to work and drive investment in clean energy technologies. ACES establishes a market-based cap and trade program that covers approximately 85% of domestic greenhouse gas (GHG) emissions from electricity generators, the transportation sector, industrial facilities, and suppliers of liquid fuel and natural gas. Coverage in most cases is limited to large entities (responsible for more than 25,000 tons of carbon dioxide equivalent or CO2e). Electric generating and industrial units are covered at the point of emission, petroleum fuels are covered at the point of production or importation, and natural gas is covered at the distributor level. Smaller sources of emissions are addressed through performance standards.
ACES provides additional economic and job creation benefits through investment in energy efficiency and renewable energy programs, and improved efficiency standards for buildings, appliances, and lighting.
ENE’s research shows that efficiency is the best mechanism to keep costs for consumers low in this new cap and trade program. Efficiency improvements not only lower bills, but also reduce demand for energy and thereby demand for emissions allowances. Decreased demand for allowances translates into lower allowance prices and lower cost emissions reductions. The ACES bill recognizes this phenomenon and makes significant new commitments to energy efficiency programs. It also contains several other provisions designed to contain the costs of the program and reduce impacts on consumers.
The Act also establishes a Renewable Electricity Standard that requires electricity and distributors to meet targets for renewable electricity supply. By 2020 distributors must achieve 20% from renewable sources or 15% from renewable resources and 5% from cumulative energy savings.
ACES contains several other provisions and detailed guidelines designed to help shape a more affordable and cleaner energy economy.
The summary of the bill, including detailed section by section descriptions, can be found at: http://www.env-ne.org/resources/open/p/id/885
ENE believes there are important opportunities to strengthen the bill in the Senate. ENE’s position statement on ACES can be found at: http://www.env-ne.org/resources/open/p/id/883/
