American Clean Energy and Security Act
Encyclopedia
The American Clean Energy and Security Act of 2009 (ACES) was an energy
Energy
In physics, energy is an indirectly observed quantity. It is often understood as the ability a physical system has to do work on other physical systems...

 bill in the 111th United States Congress
111th United States Congress
The One Hundred Eleventh United States Congress was the meeting of the legislative branch of the United States federal government from January 3, 2009 until January 3, 2011. It began during the last two weeks of the George W. Bush administration, with the remainder spanning the first two years of...

  that would have established a variant of an emissions trading
Emissions trading
Emissions trading is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants....

 plan similar to the European Union Emission Trading Scheme
European Union Emission Trading Scheme
The European Union Emissions Trading Scheme also known as the European Union Emissions Trading System, was the first large emissions trading scheme in the world. It was launched in 2005 to combat climate change and is a major pillar of EU climate policy...

. The bill was approved by the House of Representatives
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...

 on June 26, 2009 by a vote of 219-212, but died in the Senate.

This vote was the "first time either house of Congress had approved a bill meant to curb the heat-trapping gases scientists have linked to climate change."

The bill was also known as the Waxman-Markey Bill, after its authors, Representatives Henry A. Waxman
Henry Waxman
Henry Arnold Waxman is the U.S. Representative for , serving in Congress since 1975. He is a member of the Democratic Party. He is considered to be one of the most influential liberal members of Congress...

 of California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

 and Edward J. Markey
Ed Markey
Edward John "Ed" Markey is the U.S. Representative for , serving since 1976. He is a member of the Democratic Party. The district includes most of Boston's northern and western suburbs, such as Medford and Framingham. Markey is the Dean of both the Massachusetts and New England House delegations...

 of Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...

, both Democrats
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...

. Waxman is the chairman of the Energy and Commerce Committee
United States House Committee on Energy and Commerce
The Committee on Energy and Commerce is one of the oldest standing committees of the United States House of Representatives. Established in 1795, it has operated continuously—with various name changes and jurisdictional changes—for more than 200 years...

, and Markey is the chairman of that committee's Energy and Power Subcommittee.

Internationally, the House's passage of the ACES bill "established a marker for the United States when international negotiations on a new climate change treaty begin later this year." Hearings on the draft of the legislation took place the week of April 20, 2009 and the bill was passed by the House on June 26, 2009. However, in July 2010 it was reported that the Senate would not consider climate change legislation before the end of the legislative term.

Summary of provisions

The bill proposes a cap and trade system, under which the government sets a limit (cap) on the total amount of greenhouse gas
Greenhouse gas
A greenhouse gas is a gas in an atmosphere that absorbs and emits radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect. The primary greenhouse gases in the Earth's atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone...

es that can be emitted nationally. Companies then buy or sell permits to emit these gases, primarily carbon dioxide
Carbon dioxide
Carbon dioxide is a naturally occurring chemical compound composed of two oxygen atoms covalently bonded to a single carbon atom...

 (CO2). The cap is reduced over time to reduce total carbon emissions. The legislation would set a cap on total emissions over the 2012–2050 period and would require regulated entities to hold rights, or allowances, to emit greenhouse gases. After allowances were initially distributed, entities would be free to buy and sell them (the trade part of the program). Those entities that emit more gases face a higher cost, which provides an economic incentive to reduce emissions. Key elements of the bill include:
  • Requires electric utilities to meet 20% of their electricity demand through renewable energy sources and energy efficiency by 2020.
  • Subsidizes new clean energy technologies and energy efficiency, including renewable energy ($90 billion in new subsidies by 2025), carbon capture and sequestration ($60 billion), electric and other advanced technology vehicles ($20 billion), and basic scientific research and development ($20 billion).
  • Protects consumers from energy price increases. According to estimates from the Environmental Protection Agency, the reductions in carbon pollution required by the legislation will cost American families less than a postage stamp per day (about $13.20 a month, and $160.60 a year ).
  • It sets a slightly higher target for reductions in emissions of carbon dioxide
    Carbon dioxide
    Carbon dioxide is a naturally occurring chemical compound composed of two oxygen atoms covalently bonded to a single carbon atom...

    , methane
    Methane
    Methane is a chemical compound with the chemical formula . It is the simplest alkane, the principal component of natural gas, and probably the most abundant organic compound on earth. The relative abundance of methane makes it an attractive fuel...

    , and other greenhouse gas
    Greenhouse gas
    A greenhouse gas is a gas in an atmosphere that absorbs and emits radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect. The primary greenhouse gases in the Earth's atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone...

    es than that proposed by President
    President of the United States
    The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....

     Barack Obama
    Barack Obama
    Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...

    . The bill requires a 17-percent emissions reduction from 2005 levels by 2020; Obama has proposed a 14 percent reduction by 2020. Both plans would reduce United States' emissions by about 80 percent by 2050. Complementary measures in the legislation, such as efforts to prevent tropical deforestation, will achieve significant additional reductions in carbon emissions.
  • It includes a renewable electricity standard (almost identical to a renewable portfolio standard
    Renewable Portfolio Standard
    A Renewable Portfolio Standard is a regulation that requires the increased production of energy from renewable energy sources, such as wind, solar, biomass, and geothermal...

    , but narrowly tailored to electrical energy) requiring each electricity provider who supplies over 4 million MWh
    MWH
    MWH may stand for:* International Air Transport Association airport code for Grant County International Airport* MWH Global, an international water engineering consultancy* Men Without Hats, a Canadian New Wave band...

     to produce 20 percent of its electricity
    Electricity
    Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...

     from renewable sources
    Renewable resource
    A renewable resource is a natural resource with the ability of being replaced through biological or other natural processes and replenished with the passage of time...

     (such as wind
    Wind power
    Wind power is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electricity, windmills for mechanical power, windpumps for water pumping or drainage, or sails to propel ships....

    , solar, and geothermal
    Geothermal power
    Geothermal energy is thermal energy generated and stored in the Earth. Thermal energy is the energy that determines the temperature of matter. Earth's geothermal energy originates from the original formation of the planet and from radioactive decay of minerals...

    ) by 2020. There is a provision whereby 5% of this standard can be met through energy efficiency
    Efficient energy use
    Efficient energy use, sometimes simply called energy efficiency, is the goal of efforts to reduce the amount of energy required to provide products and services. For example, insulating a home allows a building to use less heating and cooling energy to achieve and maintain a comfortable temperature...

     savings, as well as an additional 3% with certification of the Governor
    Governor
    A governor is a governing official, usually the executive of a non-sovereign level of government, ranking under the head of state...

     of the state in which the provider operates.


Alternative compliance payments are $25/MWh in violation of the standard, adjusted for inflation beginning in 2010.
  • It provides for modernization of the electrical grid
  • It provides for expanded production of electric vehicle
    Electric vehicle
    An electric vehicle , also referred to as an electric drive vehicle, uses one or more electric motors or traction motors for propulsion...

    s and other advanced automobile technology
    Alternative fuel vehicle
    An alternative fuel vehicle is a vehicle that runs on a fuel other than "traditional" petroleum fuels ; and also refers to any technology of powering an engine that does not involve solely petroleum...

    .
  • It mandates significant increases in energy efficiency
    Efficient energy use
    Efficient energy use, sometimes simply called energy efficiency, is the goal of efforts to reduce the amount of energy required to provide products and services. For example, insulating a home allows a building to use less heating and cooling energy to achieve and maintain a comfortable temperature...

     in buildings, home appliance
    Home appliance
    Home appliances are electrical/mechanical machines which accomplish some household functions, such as cooking or cleaning. Home appliances can be classified into:*Major appliances, or White goods*Small appliances, or Brown goods...

    s, and electricity generation
    Electricity generation
    Electricity generation is the process of generating electric energy from other forms of energy.The fundamental principles of electricity generation were discovered during the 1820s and early 1830s by the British scientist Michael Faraday...

    .


The bill's cap-and-trade program allocates 85% of allowances to industry for free, auctioning the remainder. The revenue from these allowances will be used to finance conservation of tropical forests abroad and to support low-income households. 30% of the allowances will be allocated directly to local distribution companies (LDCs) who are mandated to use them exclusively for the benefit of customers. 5% will go to merchant coal generators and others with long-term power purchase agreements.

CBO analysis

A study in June 2009 by the non-partisan Congressional Budget Office
Congressional Budget Office
The Congressional Budget Office is a federal agency within the legislative branch of the United States government that provides economic data to Congress....

 (CBO) indicated that the bill would be roughly deficit-neutral for the government over the next decade:

The study also indicated that the tax burden on individual households would be limited:
The analysis did not attempt to quantify the environmental benefits of reduced greenhouse gas emissions. The report also stated that the "net financial impact of the program on households in different income brackets would depend in large part on how many allowances were sold (versus given away), how the free allowances were allocated, and how any proceeds from selling allowances were used. That net impact would reflect both the added costs that households experienced because of higher prices and the share of the allowance value that they received in the form of benefit payments, rebates, tax decreases or credits, wages, and returns on their investments." In other words, while a cap and trade system imposes costs on high emitters, it can generate revenues for low emitters that sell permits to them. While the government sets the bar on emission levels, the market determines who gains and who loses.

Supporters of and arguments for the bill

The bill is supported by a number of environmental organizations including, the Defenders of Wildlife
Defenders of Wildlife
Defenders of Wildlife is a United States-based, 501 non-profit organization founded in 1947, "dedicated to the protection of all native animals and plants in their natural communities." The organization is active in political interventions and lobbying aimed at protection of wildlife, and...

, the Alliance for Climate Protection
Alliance for Climate Protection
The Alliance for Climate Protection was founded in 2006 by Nobel laureate and former United States Vice President Al Gore. The Alliance is a nonprofit, nonpartisan organization committed to educating the global community about the urgency of implementing comprehensive solutions to the climate crisis...

, the Environmental Defense Fund, the National Wildlife Federation
National Wildlife Federation
The National Wildlife Federation is the United States' largest private, nonprofit conservation education and advocacy organization, with over four million members and supporters, and 48 state and territorial affiliated organizations...

, The Nature Conservancy
The Nature Conservancy
The Nature Conservancy is a US charitable environmental organization that works to preserve the plants, animals, and natural communities that represent the diversity of life on Earth by protecting the lands and waters they need to survive....

, the Audubon Society, the Natural Resources Defense Council
Natural Resources Defense Council
The Natural Resources Defense Council is a New York City-based, non-profit, non-partisan international environmental advocacy group, with offices in Washington DC, San Francisco, Los Angeles, Chicago, and Beijing...

 and the Sierra Club
Sierra Club
The Sierra Club is the oldest, largest, and most influential grassroots environmental organization in the United States. It was founded on May 28, 1892, in San Francisco, California, by the conservationist and preservationist John Muir, who became its first president...

. The League of Conservation Voters
League of Conservation Voters
The League of Conservation Voters is a political advocacy organization founded in 1969 by American environmentalist David Brower in the early years of the environmental movement. LCV's mission is to "advocate for sound environmental policies and to elect pro-environmental candidates who will adopt...

 has threatened to withhold endorsements from any Representative who votes against the bill. In addition to environmental organizations the Energy and Commerce Committee received letters of support from a broad range of organizations, including the United Auto Workers
United Auto Workers
The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, better known as the United Auto Workers , is a labor union which represents workers in the United States and Puerto Rico, and formerly in Canada. Founded as part of the Congress of Industrial...

, Exelon
Exelon
Exelon Corporation is an electricity generating and distributing company headquartered in the Chase Tower in the Chicago Loop area of Chicago. It was created in October, 2000 by the merger of PECO Energy Company and Unicom, of Philadelphia and Chicago respectively. Unicom owned Commonwealth Edison...

, General Electric
General Electric
General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...

, Dow Chemical Company
Dow Chemical Company
The Dow Chemical Company is a multinational corporation headquartered in Midland, Michigan, United States. As of 2007, it is the second largest chemical manufacturer in the world by revenue and as of February 2009, the third-largest chemical company in the world by market capitalization .Dow...

, Pacific Gas and Electric Company
Pacific Gas and Electric Company
The Pacific Gas and Electric Company , commonly known as PG&E, is the utility that provides natural gas and electricity to most of the northern two-thirds of California, from Bakersfield almost to the Oregon border...

, and DuPont
DuPont
E. I. du Pont de Nemours and Company , commonly referred to as DuPont, is an American chemical company that was founded in July 1802 as a gunpowder mill by Eleuthère Irénée du Pont. DuPont was the world's third largest chemical company based on market capitalization and ninth based on revenue in 2009...

  The New York Times noted that "industry officials were split, with the United States Chamber of Commerce
United States Chamber of Commerce
The United States Chamber of Commerce is an American lobbying group representing the interests of many businesses and trade associations. It is not an agency of the United States government....

 and the National Association of Manufacturers
National Association of Manufacturers
The National Association of Manufacturers is an advocacy group headquartered in Washington, D.C. with 10 additional offices across the country...

 opposing the bill and some of the nation’s biggest corporations, including Dow Chemical and Ford
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...

, backing it."

The Republicans for Environmental Protection (REP), a national grassroots organization, issued a press release after the vote stating "House passage today of the American Clean Energy and Security Act is a step in the right direction in the fight against dangerous climate change
Avoiding Dangerous Climate Change
The related terms "avoiding dangerous climate change" and "preventing dangerous anthropogenic interference with the climate system" date to 1995 and earlier, in the Second Assesment Report of the International Panel on Climate Change and previous science it cites.In 2002, the United Nations...

 and for developing cleaner, more secure energy resources." David Jenkins, REP vice president for government and political affairs, noted that "Doing nothing is not an option. The costs and risks of failing to limit greenhouse gas emissions are too high. We owe it to our country and to our country's future citizens to take action. Today, the House looked to the future and did the right thing for our economy, security, and environment."

The Environmental Protection Agency (EPA) estimated the discussion draft version of the bill to cost average households $98–$140 per year. A preliminary update of this study says that the changes "would likely result in lower allowance prices, a smaller impact on energy bills, and a smaller impact on household consumption."

Economist Paul Krugman
Paul Krugman
Paul Robin Krugman is an American economist, professor of Economics and International Affairs at the Woodrow Wilson School of Public and International Affairs at Princeton University, Centenary Professor at the London School of Economics, and an op-ed columnist for The New York Times...

 argued for the bill in September 2009, while attacking the bill's opponents: "It’s important, then, to understand that claims of immense economic damage from climate legislation are as bogus, in their own way, as climate change denial
Climate change denial
Climate change denial is a term used to describe organized attempts to downplay, deny or dismiss the scientific consensus on the extent of global warming, its significance, and its connection to human behavior, especially for commercial or ideological reasons...

. Saving the planet won’t come free (although the early stages of conservation actually might). But it won’t cost all that much either." During May 2009, he argued that a cap and trade system is better than a carbon tax. He explained how the incentives work:"Even when polluters get free permits, they still have an incentive to reduce their emissions, so that they can sell their excess permits to someone else. That’s not just theory: allowances for sulfur dioxide emissions are allocated to electric utilities free of charge, yet the cap-and-trade system for SO2 has been highly successful at controlling acid rain."

Arguments against the bill

Criticism has focused on ultimate costs and benefits of the plan. A report written for the conservative think tank The Heritage Foundation
The Heritage Foundation
The Heritage Foundation is a conservative American think tank based in Washington, D.C. Heritage's stated mission is to "formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong...

 on the discussion draft of the bill claims that the economy would react to this cap-and-trade system like it would to an energy crisis. This same report also claimed that the impact on global temperature by the end of the 21st century would amount to a reduction of no more than 0.2° Celsius
Celsius
Celsius is a scale and unit of measurement for temperature. It is named after the Swedish astronomer Anders Celsius , who developed a similar temperature scale two years before his death...

.

Economist Arnold Kling
Arnold Kling
Arnold Kling is a founder and co-editor of , an economics blog, along with Bryan Caplan and David Henderson.Kling graduated from Swarthmore College in 1975 and received a Ph.D. in economics from Massachusetts Institute of Technology. He worked as an economist in the Federal Reserve System from 1980...

 said the bill "maximizes rent-seeking (favoritism toward particular businesses) and minimizes carbon reduction". Other economists have argued that the bill will create significant financial costs. The Wall Street Journal
The Wall Street Journal
The Wall Street Journal is an American English-language international daily newspaper. It is published in New York City by Dow Jones & Company, a division of News Corporation, along with the Asian and European editions of the Journal....

accused the Congressional Budget Office
Congressional Budget Office
The Congressional Budget Office is a federal agency within the legislative branch of the United States government that provides economic data to Congress....

 (CBO) of significantly underestimating the bill's ultimate costs, pointing out supposed flaws in its calculations. The Wall Street Journal also suggested that the bill's costs would disproportionately affect lower-income households, for which the CBO estimates did not account. The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...

reported that the bill's provisions to levy tariffs on Chinese imports due to carbon emissions could provoke a trade war. The Competitive Enterprise Institute
Competitive Enterprise Institute
The Competitive Enterprise Institute is a non-profit think tank founded on March 9, 1984 in Washington, D.C. by lobbyist Fred L. Smith, Jr to advance economic liberty and fight over-regulation by big government...

 argued that the bill was essentially the "largest tax hike in world history". The American Petroleum Institute
American Petroleum Institute
The American Petroleum Institute, commonly referred to as API, is the largest U.S trade association for the oil and natural gas industry...

, which represents the petroleum and natural gas industry, said the bill would place "disproportionate burden on all consumers of gasoline, diesel fuel, heating oil, jet fuel, propane and other petroleum products", and by 2035, it would cause gasoline prices in excess of $4.00 per gallon by today's standards.

Nuclear power plants generate minimal greenhouse gases, yet one critic wrote that the bill does not sufficiently advocate this clean power source. In response to this criticism, House of Representatives staff members wrote that the electricity generated by nuclear power requires the purchase of far fewer allowances than other forms of electricity generation; that the bill provides various types of financial support to build clean energy generating sources, including nuclear; and that an EPA study indicated that twice as many nuclear plants would be built if the law is passed versus the status quo.

There is criticism that unless China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

 and India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

 adopt similar emissions standards, the impact on global climate will be insubstantial. This is largely an argument based on the leading role these two countries have obtained in carbon dioxide emissions which could reach 34% of the global total by 2030.

Critics also note that the bill would create the largest market in carbon in the world. It would also "open up the so-called 'sub-prime carbon' market in carbon offsets, whereby industries can claim emissions reductions by investing in various projects around the world that theoretically reduce greenhouse gas emissions. The Government Accountability Office (GAO) claims it's virtually impossible to verify whether carbon offsets represent real emissions reductions."

On June 26, 2009, Reuters
Reuters
Reuters is a news agency headquartered in New York City. Until 2008 the Reuters news agency formed part of a British independent company, Reuters Group plc, which was also a provider of financial market data...

 reported that "[s]tates that have set the U.S. agenda on addressing greenhouse gas emissions are lining up behind a federal climate bill, fearing signs of dissent would weaken a plan that still faces hurdles" The article noted that representatives from members of the Eastern U.S. 10-state Regional Greenhouse Gas Initiative
Regional Greenhouse Gas Initiative
Regional Greenhouse Gas Initiative is a regional initiative by states and provinces in the Northeastern United States and Eastern Canada regions to reduce greenhouse gas emissions...

, the Midwestern Greenhouse Gas Reduction Accord, which joins six U.S. states with Canada's Manitoba, and the 11-state-and-four Canadian province Western Climate Initiative
Western Climate Initiative
The Western Climate Initiative, or WCI, is an initiative—started by states and provinces along the western rim of North America—to combat climate change caused by global warming, independent of their national governments....

 were supporting the legislation, even though the Eastern market member states, which have already been operating under a cap-and-trade system, "would lose a direct revenue stream of hundreds of millions of dollars if the federal plan were passed." The three existing regional carbon cap and trade programs, which are in varying states of development, would likely be merged into the national plan, since "the federal 'cap-and-trade' plan pre-empts any similar state scheme from 2012 to 2017." However, ACES leaves states the option of resuming trade of pollution credits after 2017 and "would allow holders of RGGI allowances to convert them into federal allowances, which means the states will likely hold auctions until the federal plan begins.

Citizens Against Government Waste
Citizens Against Government Waste
Citizens Against Government Waste is a 501 non-profit organization in the United States. It functions as a think-tank, 'government watchdog', and advocacy group for fiscally conservative causes...

 named both Reps. Waxman and Markey the May 2009 Porkers of the month for "adding and altering provisions to placate special interests and buy the votes of appropriately skeptical members of Congress".

Debate among environmental organizations and scientists

While the Environmental Defense Fund and many other environmental organizations strongly support the bill, other environmentalists have sharply criticized the legislation in its present form as too weak and have called urgently for it to be amended so as to include additional and more vigorous measures to protect climate and natural resources.

Some environmentalists have criticized the fuel efficiency standards in the "cash for clunkers" provision of the bill, because new cars would only need to get 22 MPG to be considered fuel efficient. New SUVs and pickup trucks would only need to get 18 MPG to be considered fuel efficient. Vehicles older than 25 years are not eligible for the program. CNN reported that "One of the biggest criticisms is that it's not very environmentally friendly."

The New York Times has noted that "while some environmentalists enthusiastically supported the legislation, others, including Greenpeace
Greenpeace
Greenpeace is a non-governmental environmental organization with offices in over forty countries and with an international coordinating body in Amsterdam, The Netherlands...

 and Friends of the Earth
Friends of the Earth
Friends of the Earth International is an international network of environmental organizations in 76 countries.FOEI is assisted by a small secretariat which provides support for the network and its agreed major campaigns...

, opposed it." Friends of the Earth, an international environmental organization, announced its opposition to ACES believing the bill to be too weak and cited support from Shell Oil Company
Shell Oil Company
Shell Oil Company is the United States-based subsidiary of Royal Dutch Shell, a multinational oil company of Anglo Dutch origins, which is amongst the largest oil companies in the world. Approximately 22,000 Shell employees are based in the U.S. The head office in the U.S. is in Houston, Texas...

 and Duke Energy
Duke Energy
Duke Energy , headquartered in Charlotte, North Carolina, is an energy company with assets in the United States, Canada and Latin America.-Overview:...

 as evidence of the bill's shortcomings. Environmental organizations critical of the bill say the bill falls short by allowing for 85 percent or more of pollution permits to be given away free of cost to the electricity sector. A coalition of environmental groups released a statement saying that "to craft a bill that allows for 2 billion tons of offsets per year — roughly equivalent to 27 percent of 2007 U.S. greenhouse gas emissions — is to allow for continued and dangerous delay in real action by our country at a time when the world is looking to the U.S. for leadership on climate change." Critics of the bill about it not going far enough, claim that there were too many concessions made in rewriting the bill and that they gave into special interests. Thus, making the bill weak and potentially harmful to the economy and environment.

Dr. James E. Hansen, one of the first to warn about the risks of climate change and an advocate of taking related action, also has argued strongly against the bill: 1) It restricts the EPA's ability to regulate CO2 emissions from power plants; 2) it sets "meager" targets for emission reductions, with only a 13% reduction by 2020; 3) it lacks certain controls important to the trading of allowances to emit carbon; and 4) fails to set predictable prices for carbon, making it harder for businesses and households to make investment decisions. Dr. Hansen advocates a carbon tax rather than a cap and trade system.
Alternatively, Senators Maria Cantwell and Susan Collins have introduced the Carbon Limits and Energy for Americas Renewal (CLEAR) Act. This bill proposes a Cap and Dividend
Cap and dividend
Cap and Dividend is a market-based trading system which retains the original capping method of cap and trade, but also includes compensation for energy consumers...

 approach in which 75% of the revenue goes to tax payers and the rest to development of renewable energy.

Media response

News agencies Reuters
Reuters
Reuters is a news agency headquartered in New York City. Until 2008 the Reuters news agency formed part of a British independent company, Reuters Group plc, which was also a provider of financial market data...

 & Agence France-Presse
Agence France-Presse
Agence France-Presse is a French news agency, the oldest one in the world, and one of the three largest with Associated Press and Reuters. It is also the largest French news agency. Currently, its CEO is Emmanuel Hoog and its news director Philippe Massonnet...

 and United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 newspaper The Guardian
The Guardian
The Guardian, formerly known as The Manchester Guardian , is a British national daily newspaper in the Berliner format...

 reported the narrow passage of the 'historic' legislation in the House, regarding the vote to be a 'major' and 'hard-fought' victory for President Obama, while an Associated Press
Associated Press
The Associated Press is an American news agency. The AP is a cooperative owned by its contributing newspapers, radio and television stations in the United States, which both contribute stories to the AP and use material written by its staff journalists...

 article, carried by the Canadian Broadcasting Corporation
Canadian Broadcasting Corporation
The Canadian Broadcasting Corporation, commonly known as CBC and officially as CBC/Radio-Canada, is a Canadian crown corporation that serves as the national public radio and television broadcaster...

, reported the vote to be "a triumph for [the] U.S. President."

The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...

 commented that "the House legislation reflects a series of concessions necessary to attract the support of Democrats from different regions and with different ideologies. In the months of horse-trading before the vote Friday, the bill’s targets for emissions of heat-trapping gases were weakened, its mandate for renewable electricity was scaled back, and incentives for industries were sweetened." Business Week emphasized its perceived significance of the legislation and its passage in the House, declaring "June 26, 2009, will go down as an historic moment in world’s efforts to tackle climate change. For the first time, a Congressional body passed legislation that would place mandatory limits on the emissions of the greenhouse gases that cause global warming."

Impact on Copenhagen Climate Change Conference

It was reported that the passage of ACES in Congress would increase the likelihood that a successor to the Kyoto Protocol
Kyoto Protocol
The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change , aimed at fighting global warming...

 would be adopted at the United Nations Climate Change Conference 2009 in Copenhagen
Copenhagen
Copenhagen is the capital and largest city of Denmark, with an urban population of 1,199,224 and a metropolitan population of 1,930,260 . With the completion of the transnational Øresund Bridge in 2000, Copenhagen has become the centre of the increasingly integrating Øresund Region...

. The Guardian US environment correspondent noted that ACES passing the US House of Representatives "delivers an important boost to the prospects of reaching an agreement for international action on climate change at Copenhagen this year." The NYTimes noted that "the German chancellor, Angela Merkel
Angela Merkel
Angela Dorothea Merkel is the current Chancellor of Germany . Merkel, elected to the Bundestag from Mecklenburg-Vorpommern, has been the chairwoman of the Christian Democratic Union since 2000, and chairwoman of the CDU-CSU parliamentary coalition from 2002 to 2005.From 2005 to 2009 she led a...

, who was in Washington on Friday to meet with Mr. Obama, strongly endorsed the bill even though it fell short of European goals for reducing the emissions of heat-trapping gases."

Legislative history

It was offered as a "discussion draft" in the House Committee on Energy and Commerce
United States House Committee on Energy and Commerce
The Committee on Energy and Commerce is one of the oldest standing committees of the United States House of Representatives. Established in 1795, it has operated continuously—with various name changes and jurisdictional changes—for more than 200 years...

 on March 31, 2009. A final version of the legislation was introduced on May 15, 2009 by the same title, assigned bill number .

On May 21, 2009, the bill passed out of the Energy and Commerce Committee
United States House Committee on Energy and Commerce
The Committee on Energy and Commerce is one of the oldest standing committees of the United States House of Representatives. Established in 1795, it has operated continuously—with various name changes and jurisdictional changes—for more than 200 years...

 by a vote of 33-25, largely falling along political party lines.

Energy and Commerce Committee markup

Republicans proposed over 400 amendments to the bill, the majority of which many think were proposed to delay passage. Some of the more prominent from both parties are listed below:

Accepted

  • John Dingell
    John Dingell
    John David Dingell, Jr. is the U.S. Representative for , serving since 1955 . He is a member of the Democratic Party...

     (D-MI) offered an amendment that establishes a bank to assist with loans for clean energy development.
  • Betty Sutton
    Betty Sutton
    Betty Sue Sutton is the U.S. Representative for , serving since 2007. She is a member of the Democratic Party.The district includes most of the western and southern suburbs of Cleveland, and includes North Royalton, Akron, Lorain, Elyria, Strongsville, Avon and Cuyahoga Falls.-Early life and...

     (D-OH) offered an amendment establishing a "Cash for Clunkers" program, giving $3,500 or $4,500 toward the purchase or lease of more fuel efficient vehicles if anyone trades in qualifying, less-efficient vehicles.
  • Kathy Castor
    Kathy Castor
    Kathy Castor is the U.S. Representative for , serving since 2007. She is a member of the Democratic Party.The district covers most of the city of Tampa, most of south St...

     (D-FL) offered an amendment giving states the ability to adopt feed-in tariff
    Feed-in Tariff
    A feed-in tariff is a policy mechanism designed to accelerate investment in renewable energy technologies. It achieves this by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology...

    s for renewable energy as defined in the bill.
  • Henry Waxman
    Henry Waxman
    Henry Arnold Waxman is the U.S. Representative for , serving in Congress since 1975. He is a member of the Democratic Party. He is considered to be one of the most influential liberal members of Congress...

     (D-CA) offered an amendment creating a classification of "central procurement state" that allows existing renewable energy legislation passed by states before January 1, 2009 to supersede some provisions of the bill.

Defeated

  • Mike Rogers (R-MI) offered an amendment that would have cancelled the Act unless China
    China
    Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

     and India
    India
    India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

     adopt similar standards.
  • Roy Blunt
    Roy Blunt
    Roy D. Blunt is the junior United States Senator from Missouri. He is a member of the Republican Party. His Senate seat was previously held by Republican Kit Bond, until his retirement....

     (R-MO) offered an amendment that would have cancelled the Act if the average price of electricity in a residential sector increases by 10% or more. After defeat, he offered a second amendment that would have cancelled only Title III (the cap-and-trade plan) of the Act if residential electricity prices rise by 20%. After defeat of this measure, George Radanovich
    George Radanovich
    George Purdy Radanovich is a former U.S. Representative for , serving from 1995 to 2011. The district includes most of northern Fresno, as well as several rural areas northeast of the city. On December 29, 2009, Radanovich announced he would not seek reelection in 2010...

     (R-CA) offered a similar amendment that would have cancelled only Title III if electricity prices in the residential sector rise by 100%. This measure was also defeated. In the hearing, Bart Stupak
    Bart Stupak
    Bartholomew Thomas "Bart" Stupak is a lobbyist and American politician of the Democratic Party. He served as the U.S. Representative from from 1993 to 2011....

     (D-MI) called into question the seriousness of these "message amendments." He stated they are only offered to be used by the Republicans to spur sensational headlines about lack of sympathy by Democrats. Ranking Member Joe Barton
    Joe Barton
    Joseph Linus "Joe" Barton is a Republican politician, representing in the U.S. House of Representatives since 1985, and a member of the Tea Party Caucus...

     (R-TX) responded that they were indeed "message amendments" to the American people in an attempt to convey that supporters of the bill care nothing about cost to the ratepayer.
  • Lee Terry
    Lee Terry
    Lee Raymond Terry is the U.S. Representative for , serving since 1999. He is a member of the Republican Party.A lifelong Nebraskan, Congressman Lee Terry has worked continually to empower the people of the Second District. Terry has been a leader for Nebraska, advocating American energy...

     (R-NE) offered an amendment that would have cancelled the Act if average gas prices reach $5 per gallon.
  • Fred Upton
    Fred Upton
    Frederick Stephen Upton is the U.S. Representative for , serving since 1987. He is a member of the Republican Party and Chairman of the Committee on Energy and Commerce. The district, based in Kalamazoo, stretches along the Michigan-Indiana border in the southwestern part of the state.-Early life,...

     (R-MI) offered an amendment that would have suspended the Act if the nation's unemployment rate for the prior year reaches 15% as a result of the Act.
  • Marsha Blackburn
    Marsha Blackburn
    Marsha Wedgeworth Blackburn is the U.S. Representative for , serving since 2003. She is a member of the Republican Party. The district stretches from the suburbs of Nashville to the suburbs of Memphis.-Early life, education and career:...

     (R-TN) offered an amendment that would have required the U.S. Environmental Protection Agency‎ (EPA) to label energy bills, food, manufactured products and fuels with the price impact this law has on the item.
  • Cliff Stearns
    Cliff Stearns
    Clifford Bundy "Cliff" Stearns, Sr. is the U.S. Representative for , serving since 1989. He is a member of the Republican Party.-Early life, education and career:According to his official biography, Stearns was born in Washington, D.C...

     (R-FL) offered an amendment that would have removed existing nuclear power from the baseline of the Renewable Electricity Standard. (This amendment would have potentially reduced the overall implementation of renewable energy under this act by around 20%, the amount of nuclear electricity generation in the United States).


By the end of May 20, 2009, 2 Republican and 24 Democratic amendments had been adopted. 15 Republican amendments had been defeated. No amendment sponsored by a Democrat had yet been defeated.

Rules Committee resolution

At 3:47 AM on June 26, 2009, was reported to the house, which amended H.R. 2454, adding to the bill. This resolution was passed by the house just hours later at 11:21 AM. Republicans complained that neither the public nor the Representatives were given adequate time to study the 310-page amendment. Markey refuted Rush Limbaugh
Rush Limbaugh
Rush Hudson Limbaugh III is an American radio talk show host, conservative political commentator, and an opinion leader in American conservatism. He hosts The Rush Limbaugh Show which is aired throughout the U.S. on Premiere Radio Networks and is the highest-rated talk-radio program in the United...

's assertion that the bill was not available at all, saying the bill was available to read on the Internet and at the reading clerk's desk since the 3:47 AM reporting.

Final debate and floor vote

Speaker Nancy Pelosi scheduled the vote for June 26, 2009. The week leading up to the vote was marked by courting moderate Republicans and on-the-fence Democrats from rural and coal districts to support the legislation in what was expected to be a close vote. On the day of the vote, Democrats were still working to ensure they had the votes needed to pass the bill. Republicans tried to pull back their proposed amendments, realizing they were giving the Democrats more time to corral votes, however, they were unable to pull their proposed amendments off the floor. Shortly before the vote, John Boehner
John Boehner
John Andrew Boehner is the 61st and current Speaker of the United States House of Representatives. A member of the Republican Party, he is the U.S. Representative from , serving since 1991...

 read aloud to the House from most of the 300 page Manager's amendment that was filed at 3:09AM on the day of the vote. He voiced opposition to the practice of changing bills in the middle of the night before the vote, and concern that the Manager's amendment made substantial changes to the bill. He did not want the House to vote on the bill before the members could learn what was in the amendment, so he read much of it aloud. Manager's amendments are supposed to be for clerical changes only, not substantive ones. Patrick J. Kennedy
Patrick J. Kennedy
Patrick Joseph Kennedy II is the former U.S. Representative for , serving from 1995 until 2011. He is a member of the Democratic Party. The district includes all of Bristol County and Newport County, and parts of Providence County. Kennedy did not seek re-election in 2010.A member of the Kennedy...

 (D-RI) returned from rehab to cast an 'Yes' vote, and Ellen Tauscher
Ellen Tauscher
Ellen O'Kane Tauscher is an American politician and Under Secretary of State for Arms Control and International Security Affairs...

 (D-CA) delayed resigning the House to vote for the legislation as well.

The bill was approved by the House by a vote of 219-212, with 8 Republicans supporting, and 44 Democrats voting against, and 3 members not voting. All Representatives present at the time of the vote had cast votes. Jeff Flake
Jeff Flake
Jeffrey Lane "Jeff" Flake is the U.S. Representative for , serving since 2001. He is a member of the Republican Party. He was featured in the documentary series How Democracy Works Now: Twelve Stories....

 (R-AZ), Alcee Hastings
Alcee Hastings
Alcee Lamar Hastings is the U.S. Representative for , serving since 1993. He is a member of the Democratic Party.-Early life, education and career:...

 (D-FL), and John Sullivan (R-OK) missed the vote due to 'a family conflict,' travel abroad in Albania, and 'alcohol addiction treatment,' respectively.

Democratic votes against largely came from freshman in Republican-leaning seats, conservative "blue dog" democrats, as well as Democrats from areas dependent on coal for electricity or areas with large numbers manufacturing jobs. However, some Democrats from liberal districts, like Pete Stark
Pete Stark
Fortney Hillman "Pete" Stark, Jr. is the U.S. Representative for , serving since 1973. He is a member of the Democratic Party. Currently he is the 5th most senior Representative, as well as 6th most senior member of Congress overall...

 (CA) voted against the bill because he considered the bill 'watered-down.' Dennis Kucinich
Dennis Kucinich
Dennis John Kucinich is the U.S. Representative for , serving since 1997. He was furthermore a candidate for the Democratic nomination for President of the United States in the 2004 and 2008 presidential elections....

 (D-OH) voted against the bill because he considered the bill 'too-weak' and opposed offsets, among other similar criticisms.

Republicans supporting the bill included Army Secretary nominee John M. McHugh
John M. McHugh
John Michael McHugh is the 21st United States Secretary of the Army and a former Republican politician from the state of New York, formerly representing the state's 23rd congressional district in the United States House of Representatives.On June 2, 2009, President Barack Obama nominated him to...

 and moderate Republican Main Street Partnership
Republican Main Street Partnership
The Republican Main Street Partnership is a group of moderate members of the United States Republican Party. They tend away from the dominant social conservatism of many Republicans and towards a moderate fiscal conservatism and limited government to a degree. The group is the rough equivalent of...

 caucus members Mary Bono Mack (R-CA), Mike Castle (R-DE), Dave Reichert
Dave Reichert
David George Reichert is the U.S. Representative for , serving since 2005. He is a member of the Republican Party. He previously served as Sheriff of King County, Washington.-Early life, education and career:...

 (R-WA), Mark Kirk
Mark Kirk
Mark Steven Kirk is the junior United States Senator from Illinois and a member of the Republican Party. Previously, Kirk was a member of the United States House of Representatives, representing Illinois's 10th congressional district....

 (R-IL), Leonard Lance
Leonard Lance
Leonard Lance is the U.S. Representative for , serving since 2009. He is a member of the Republican Party. He previously served in the New Jersey Senate and the New Jersey General Assembly....

 (R-NJ), Frank LoBiondo
Frank LoBiondo
Frank A. LoBiondo is the U.S. Representative for , serving since 1995. He is a member of the Republican Party. The district is at the southern end of New Jersey, and by far the biggest Congressional District in the state...

 (R-NJ). Kirk and Castle are also members of the Republicans for Environmental Protection caucus.

Required annual reductions in GHG emissions

The table below summarizes the required GHG emission reductions (benchmark is 2005 emission levels):
Year Required Annual Percentage
2012 3.0
2020 17.0
2030 42.0
2050 83.0

See also

  • Carbon Pollution Reduction Scheme
    Carbon Pollution Reduction Scheme
    The Carbon Pollution Reduction Scheme was a proposed cap-and-trade system of emissions trading for anthropogenic greenhouse gases, due to be introduced in Australia in 2010 by the Rudd government, as part of its climate change policy. It marked a major change in the energy policy of Australia...

  • Low-carbon fuel standard
    Low-carbon fuel standard
    A low-carbon fuel standard is a rule enacted to reduce carbon intensity in transportation fuels as compared to conventional petroleum fuels, such as gasoline and diesel. The most common low-carbon fuels are alternative fuels and cleaner fossil fuels, such as natural gas...

  • Low carbon power generation
  • Regional Greenhouse Gas Initiative
    Regional Greenhouse Gas Initiative
    Regional Greenhouse Gas Initiative is a regional initiative by states and provinces in the Northeastern United States and Eastern Canada regions to reduce greenhouse gas emissions...

  • Climate Change Accountability Act (Bill C-311)
    Climate Change Accountability Act (Bill C-311)
    The Climate Change Accountability Act was a Private Member's Bill in the 40th Parliament, originally tabled in October 2006 in the Canadian House of Commons as Bill C-377 of the 39th Parliament by Jack Layton, Leader of the New Democratic Party of Canada...

  • Climate change policy of the United States
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