The
American Clean Energy and Security Act of 2009 (ACES) was approved by the U.S. House of Representatives on June 26, 2009. A similar set of bills is currently before the U.S. Senate. The purpose of the legislation is to create clean energy jobs, achieve energy independence, reduce global warming pollution, and transition to a clean energy economy. While these goals are widely shared, many homeowners are concerned about how the legislation might affect them. Cost is always a major issue. While estimates vary, the non-partisan Congressional Budget Office projects that the bill will cost the average household $175 each year or 48 cents per day.
Major Provisions of the Legislation
The majority of the legislation directly impacts major industries. However, a summary of the major provisions shows how the legislation will affect our energy choices and our future as well.
Reduction in greenhouse gases—The legislation would put a cap on carbon dioxide emissions and require high-emitting industries to gradually reduce their output by specific targets. Regulated industries would receive “emissions allowances” each year. Those companies that exceed their targets can sell their allowances or bank them for future use. This market-based system is known as a “cap and trade” program.
Renewable energy—ACES requires electric utilities to generate 20% of their electric through renewable energy sources by 2020. In addition, the federal government is required to meet 20% of its energy needs through renewable sources by 2020.
Protection for utility customers—To protect consumers from potential increases in energy costs, ACES makes allowances available to electric and natural gas utilities to help keep rates low and to help fund energy-efficiency programs. National Grid offers a variety of energy efficiency programs for our residential customers. For more information, please visit our website at www.powerofaction.com/efficiency.
Building energy efficiency—ACES establishes targets for new standards for building efficiency, requiring new buildings to be 30% more efficient in 2012 and 50% more efficient in 2016. ACES also establishes programs to help building owners retrofit existing buildings, replace antiquated mobile homes with energy-efficient models, and improve energy efficiency in multi-family assisted housing projects.
Appliance standards—ACES mandates new energy-efficiency standards and testing procedures for lighting products, furnaces, and other appliances.
Investments in clean energy technology—The legislation would provide funding of $190 billion for new investments in energy efficiency and renewable energy, carbon capture and sequestration, advanced technology vehicles, and scientific research and development.
