May 22nd, 2009 by Jess

Today, in line with Speaker Pelosi’s promise to have climate change legislation ready for discussion by Memorial Day, the House Energy and Commerce Committee passed H.R. 2454, previously known as the Waxman-Markey climate change bill, now known as the American Clean Energy and Security Act (ACES).

We did a brief summary of our likes and dislikes of the original draft discussion bill.  That was a long time ago in legislative terms!  But today, no normative statements – just some highlights from the summary of the bill.

The American Clean Energy and Security Act:

• Requires retail electric companies to source a percentage of their load from renewable sources, beginning at 6% in 2012 and gradually rising to 20% in 2020.  A portion of this requirement may be met with efficiency savings.
• Provides incentive programs for smaller renewable projects, such as rooftop solar, which are built into the electricity credit system.
• Includes a bunch of stuff on carbon capture and sequestration – since there is currently not a deployable technology, most of this section is geared towards figuring out how to make CCS deployable.  Investigation of state geological protections, creation of an incentive program for commercially deployable CCS, etc.
• Establishes technology standards for coal power plants built after 2020.
• Provides incentives for large-scale electric transportation programs, development of electric vehicles, development of and integration with smart-grid infrastructure.
• Provides incentives for a variety of energy efficiency projects across various sectors.
• Addresses adaptation measures.
• Outlines tons of funding for research.

As far as the climate change/emissions section, we are looking at a cap and trade system that allows offsets.  Distribution will be by both allocation and auction, with a decreasing % of allowances allocated each year.  Reduction targets are from 2005 levels – 97% by 2012, 80% by 2020, 58% by 2030, and 17% by 2020.

The bill also includes an impressive worker adjustment assistance section, with substantial support for workers displaced as a result of the new energy policy and provisions protecting low-income families. 

All in all, not bad.  It’s long, it’s comprehensive, and I’m sure Congress will have lots to fight about.  But isn’t that what Congress does best?

ACES, American Clean Energy and Security Act, cap and trade, climate change bill, congress, Waxman-Markey bill