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The American Clean Energy and Security Act of 2009 introduced as H.R. 2454 by Chairmen Henry A. Waxman
(CA-30) and Edward J. Markey (MA-7) is the only viable legislative opportunity we have before the Copenhagen
Climate Change Conference to move the United States toward a clean energy economy that will create jobs,
strengthen our economy, make us more energy independent, and limit dangerous global warming pollution.
However, it is clear given recent changes since the discussion draft was released that Big Oil, Dirty Coal, and
other polluters are continuously working to riddle this bill with loopholes, water it down, and keep America
dependent on dirty fuels like oil and coal. In the last three months alone, fossil fuel companies have outspent
environmental groups 16 to 1 on capital hill. The industries spent $79 million to lobby Congress, outspending the
green community’s comparatively meager $4.7 million in the same time period. We must resolve to be 16 times
louder, and draw on the power of ordinary citizens from all walks of life, channeling their voices in ways that
move and improve this bill to make up for the disparity in the financial resources we have available.
Frustration from many in the climate community is understandable in light of the compromises being made at
the expense of new jobs, and clean energy. We believe it is critical that we channel this energy constructively to
strengthen the bill and achieve the win that we need: passing climate legislation strong enough to withstand
international scrutiny before Copenhagen. Passing strong legislation this year will demonstrate U.S. leadership,
and strengthen our negotiating power to bring other heavy emitters like China and India into an international
treaty. We must ensure that President Obama has the tools to broker an equitable and effective global climate
agreement in Copenhagen this December.
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- canadian pharmacy no prescription required Increase the combined renewable energy and energy efficiency standard to 30% by 2020 to deliver more clean energy jobs to the U.S. economy more quickly. Utilities should have to achieve at least 17% mandatory renewables and 10% mandatory
efficiency by 2020, while maintaining flexibility to do either with 3%. Strengthening these clean energy standards will create over 100,000 new jobs in the wind industry alone – jobs that otherwise would be left on the cutting room floor.
- canadian pharmacy no prescription required Restore authority to the EPA to mandate cleaner technology for power
plants. Right now, the EPA has the power to stop investments in dirty plants and mandate that existing plants clean up their act – the EPA must retain these powers. In place of that authority, the bill would establish performance standards only for new coal-fired power plants, but those standards don’t phase in for many years and don’t cover the 600 dirty coal plants currently in operation and in need of immediate oversight.
- canadian pharmacy no prescription required Limit allocations to polluting industries, like Big Oil and Dirty Coal, and instead supplement allowance accounts that would bolster green job development and protection of vulnerable communities. Reduce allocations from fossil fuel producers and redistribute to programs that deliver energy efficiency and renewable energy, create green jobs and train workers to fill them, and protect natural resources and vulnerable communities here and around the world.
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businesses across the economy by encouraging investment in efficient buildings, appliances, vehicles,
and industrial processes. Clean energy investments and money sent to consumers allows the
overwhelming majority of Americans to achieve overall energy cost savings, while reducing reliance on
dirty fuels nationwide.
- canadian pharmacy no prescription required and help make our country energy independent
through the development and use of clean renewable energy.
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emissions reductions worldwide. Even in its current form, analysis indicates that ACESA could reduce
global warming pollution at least 28% below 2005 levels by 2020 via the combined effect of a cap on
carbon and complementary policies.
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Key Items |
Major Provisions |
1Sky Goals |
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✓ At least
28% below 2005 levels (18% below 1990 levels), from a combination of the cap
and complementary policies.
✓ 15% of
these total reductions below 2005 levels are from the cap (17% below 2005 levels
over 85% of the economy), and the rest are from domestic emissions cuts
outside the cap (3%), avoided tropical deforestation (10%), and potentially
more cuts via discounted offsets (0-5%).
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✓ At least
75% cuts below 2005 levels total via the cap and complementary policies (71%
below 1990 levels).
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✓ High
levels of international carbon offsets may be purchased in place of domestic
emissions reductions – up to 1.5 billion tons annually – which is
around 20% of annual emissions in the U.S. These offsets are paired with
stringent quality standards and regulatory requirements, including a 1.25
offset substitution requirement starting in 2017.
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✓ High
levels of domestic carbon offsets – up to 1 billion tons annually
– may also be purchased in place of domestic emissions reductions. The
EPA predicts that less than half a billion tons of offsets will come online
in the next 30 years – equivalent to about 7% of annual U.S. emissions. |
Cut carbon emissions by at least 35% below
2005/current levels by 2020, equivalent to at least 25% below 1990 levels, in
line with the Intergovernmental Panel on Climate Change (IPCC) analysis. 1Sky
is also concerned with the bill’s very high levels of international carbon
offsets, and urges direct investments in emissions reductions rather than
offsets that come in place of domestic reductions in fossil fuel consumption. |
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✓ Strong new
building codes set energy efficiency targets of 30% by 2010 and 50% by 2016
for new buildings.
✓ Strengthens
efficiency standards for lighting and a number of appliances such as hot
tubs, furnaces, bottle-type water dispensers, and televisions, including
reward programs for “best –in-class” high-performance models. Mandates
better efficiency rating and labeling to help guide consumers toward
cost-effective appliances, including products that include smart-grid
capability.
✓ Mandates
states and metropolitan regions to create new transportation plans that
establish emission reduction goals from their transportation sectors. A competitive grant program is
authorized to implement these plans.
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✓ Establishes
programs directing the EPA and Department of Energy to work with states and
local governments to improve efficiency of existing buildings through
retrofits.
✓ Directs
the EPA to set efficiency standards for new nonroad vehicles and engines,
including marine vessels, locomotives, and aircraft.
✓ Requires
that standards are established for industrial energy efficiency, providing
incentives for recovering waste energy from industrial processes, and
reducing peak demand from the aging electricity grid.
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✓ Authorizes
and increases access to grants for communities and community development
organizations to provide financing to improve energy efficiency and develop
distributed renewable energy supplies in low-income rural and urban
communities. Includes provisions that help low-income families upgrade to
Energy Star-rated manufactured homes. |
1Sky is very supportive of enhanced energy
efficiency standards and investments. We are especially excited by the
prospect of using existing administrative authority to set and strengthen
efficiency standards for vehicles, buildings, appliances, and industrial
processes. Strong efficiency standards have the potential to save our economy
billions of dollars that would have been spent on fossil fuels, while also
encouraging innovation and creating new jobs. |
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✓ The
federal RES requires individual utilities to produce 20% of their power from
renewables, efficiency, and other sources by 2020. Broad renewables definition includes efficiency savings
(for up to 8%), biomass, combustion of coal bed methane, and MSW combustion
(burning trash). New nuclear plants and fossil fuel plants with CCS (carbon
capture and sequestration) can be substituted in place of renewables and
efficiency.
✓ Because
of utility exemptions, baseline deductions and opt-out provisions, renewable
energy generation required under this proposal may be as low as 8.3% by 2020,
which is lower than business as usual.
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✓ Directs
federal agencies to coordinate regional smart grid planning, and assess
products for smart grid capability. |
1Sky is supportive of a federal Renewable
Electricity Standard that is stronger than business as usual. The Energy
Information Agency projects that current state and federal policies will
result in approximately 10% renewable generation by 2020. The RES should be
strengthened significantly to ensure that renewable power deployment exceeds
business as usual nationwide.
An improved smart grid will be crucial for developing cost-effective clean
energy resources. |
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✓ EPA is
stripped of regulatory authority to set performance standards for new and
existing coal plants.
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✓ Any new
coal plant permitted after 2009 is required to undergo expensive retrofits
that capture and sequester at least 50% carbon-pollution sometime between 2013
and 2025 (sooner if CCS plants come online by 2020).
✓ After
2020, new coal plants must capture and sequester at least 65% of their global
warming pollution upon construction.
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✓ Adds a
fee to electricity bills that will then be given to utilities to invest in
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tag: $1 billion/yr for 10 years. |
Enact an immediate moratorium on new coal-fired
plants that emit carbon pollution. The over 600 existing coal plants
represent over ¾ of U.S. electricity emissions, and operate at lower
performance than other forms of cost-effective electricity generation. Performance
standards for coal plants are needed to ensure that the existing fleet is not
allowed to build new plants or retrofits that use old technology and increase
carbon emissions. Instead of funding new coal plants, public monies should
support proven renewable energy and efficiency projects that are already
commercialized, create more jobs, and save consumers money. |
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Under H.R.
2454, carbon pollution permits decline in quantity but increase in value
starting in 2012. Each year polluters will need to purchase one permit for
every ton of pollution they emit. The House Energy and Commerce Committee has
decided to “allocate” these valuable pollution permits, or “allowances,” to
states, administrative entities, federal programs, and the private sector. The
majority of these allowances will be sold to polluters in return for revenue
for the purposes identified below. Estimated total value of the near-term allocation pool is around $100
billion by 2020.
Allowance % |
Major Provisions (2020 snapshot) |
1Sky Goals |
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✓ These
allowances are given to the oil industry. Oil companies still feel the market
signal of a price on carbon, but they also receive money to help offsets the
new costs associated with fossil fuels.
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✓ Allowances
given to merchant coal and long-term power purchase agreements according to a
formula developed by utilities. Utilities still feel the market signal of a
price on carbon, but they also receive money to help offsets the new costs
associated with fossil fuels.
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✓ This
provision gives public funding to new commercial-scale plants that use CCS
technology to capture and sequester at least 50% of their carbon pollution.
More funding is distributed to better-performing large-scale plants
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✓ These
allowances are designed to prevent energy-intensive industries from moving
jobs and emissions abroad. Allocations start at 15% and decline over time.
✓ Supplemented
and eventually replaced by a border tax adjustment (carbon tariff) in 2025. |
Valuable allowances should not be given away to
polluters for free. Taxpayer monies be invested in a clean energy transition,
not spent cleaning up after polluters.
Instead of paying utilities to build new coal
plants, these valuable allowances should support renewable energy and
efficiency projects that are already commercialized, affordable, create more
jobs, and save consumers more money than investments in fossil fuel
infrastructure.
1Sky supports a border tax adjustment (carbon
tariff) as soon as possible. Output-based rebates given to industries should
be linked with energy efficiency measures, which will make existing
industries more competitive by cutting energy costs. |
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✓ The
value of these allowances is equal to 90% of the increased costs for
utilities under a carbon cap. With allowance value going to LDCs, power
generators still feel the market signal of a price on carbon, but commercial
and residential ratepayers are buffered from 90% of the price increase, which
reduces the incentive for them to invest in cost-effective energy efficiency
measures. State-based public utility commissions and the EPA are given the
power to revoke allowances from LDCs if they do not pass the full value of
these allowances to consumers through reduced electricity bills.
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✓ The
value of these allowances is equal to two thirds of the increased costs for natural
gas companies under a carbon cap. Like the electric utilities, natural gas
companies will still feel the market signal of a price on carbon, but
commercial and residential ratepayers are buffered from two thirds of the
price increase, which reduces the incentive for them to invest in
cost-effective energy efficiency measures. As with electric utilities,
state-based public utility commissions and the EPA are given the power to
revoke allowances from LDCs if they do not pass the full value of these allowances
to consumers through natural gas bills. |
Investing in energy efficiency, clean energy, and
direct consumer rebates are all more cost-effective means of reducing energy
costs for ratepayers than price manipulation via LDCs. Artificially lowering
the cost of energy disincentives private investments in energy efficiency and
clean energy. Allowing a carbon price to permeate throughout the economy will
produce more jobs, reduce emissions at lower net cost, and would be better on
a whole for the economy. In addition, the regulatory integrity of the utility
commissions overseeing LDCs varies from state to state. It will be up to the
EPA ensure that utilities aren’t making windfall profits from this system. |
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✓ These
allowances are distributed to LDCs and states to invest in heating oil and
natural gas efficiency measures. These projects are designed to save
consumers money, by investing in low-cost common sense energy-saving projects. |
1Sky supports extensive investments in energy
efficiency. Efficiency projects reduce carbon and cut costs for consumers
more cost-effectively than using valuable allowances for price manipulation
via LDCs. |
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✓ These
allocations are auctioned and used to send direct lump-sum payments to
low-income consumers, whose prices will be influenced by climate policy.
Because low-income households spend a higher percentage of their income on
energy than other households, it’s important to target rebates to this
segment of the population.
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✓ Distributed
through states most impacted by higher heating oil prices. |
1Sky supports consumer rebate programs in place
of manipulating energy prices via local distribution companies. Sending
income-based rebates directly to low- and moderate-income consumers entirely
makes up for utility rate increases, while increasing the savings gleaned
from small-scale investments in energy efficiency. |
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✓ 5.5% for
clean tech deployment.
✓ 1.5% for
clean tech R&D.
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✓ A
program to help fund research, development, implementation for electric
vehicles and other advanced automobile technology. Funded at 3% for the first
6 years.
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✓ Funding
is targeted toward workers who are affected by the transition from fossil
fuels to clean energy.
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✓ Funds to
help vulnerable communities and ecosystems adapt to climate change. Half for
wildlife and natural resource protection, and half for other adaptation
purposes, like public health. |
Instead of funding new coal plants, public monies
should support renewable energy and efficiency projects that are already
commercialized, affordable, and create four times more jobs than fossil fuel
infrastructure investments. Training programs are necessary to ensure that
new job opportunities created by this legislation are available to all
communities in need of good jobs. |
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✓ Allocating
funds to help vulnerable communities adapt to climate change, protect
tropical forests, and export clean energy technology increase our bargaining
power at the international climate negotiations coming up this December in
Copenhagen. These funds assist vulnerable communities in developing countries
as they transition to low-carbon economies and adapt to the changing climate. |
A substantial increase in funding will be
necessary to make a binding global climate treaty a reality. Setting aside
more allowances for these purposes will improve the prospects for an
effective international climate agreement in Copenhagen this December. Without
a stronger financial commitment, a global agreement on climate will be in
serious jeopardy. |
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✓ Allowance
value is transferred to the U.S. Treasury, which allows the bill to be scored
as deficit-neutral by the CBO (Congressional Budget Office). |
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