A Common Person’s Guide to the American Clean Energy and Security Act of 2009
On May 21st, following months of work, the House Energy and Commerce Committee passed the American Clean Energy and Security Act of 2009 (ACESA), a 932-page piece of climate legislation. There have been mixed reactions from environmental and climate groups, but most groups are in agreement that it needs to be strengthened going forward. For some groups the problems they see with the bill have led to their public withdrawal of support. These groups include Greenpeace USA, Public Citizen and Friends of the Earth. The Chesapeake Climate Action Network also does not support the bill in current form.
Below is a summary analysis of the main features of the bill.
–Cap and Trade System: The bill would establish a “cap-and-trade” system that sets mandatory and declining limits on greenhouse gas emissions over the next 40 years. By 2050 it projects reductions of 83% from 2005 levels for the United States. It does this primarily through the establishment of 1) a “cap” on emissions and the annual issuance by the government of permits to emit greenhouse gases, both of which–the cap and the emissions permits–come down steadily year after year, and 2) a tradable market to buy and sell those permits to emit global warming pollution. That’s why it’s called a “cap-and-trade” system.
–Wide-Open Buying and Selling: Significantly, this market is open to anyone, not just those entities which emit greenhouse gases. For example, Wall Street firms whose primary purpose is to make money for their investors can buy and sell pollution permits. Anyone, whether Goldman Sachs or John Q. Public, can get into this newly-created market. From page 430 of the bill: “The privilege of purchasing, holding, selling, exchanging, transferring, and requesting retirement of emission allowances, compensatory allowances, or offset credits shall not be restricted to the owners and operators of covered entities, except as otherwise provided in this title.” Especially following the sub-prime mortgage/credit/banking crisis, there is concern among many people, including some on Capitol Hill, about the potential for this system to be abused by those out to make quick and big profits.
–Goals and Targets: The document states that one of its prime objectives is to help the world “avoid atmosphere greenhouse gas concentrations above 450 parts per million carbon dioxide equivalent; and global surface temperature 3.6 degrees Fahrenheit (2 degrees Celsius) above the pre-industrial average.” However, a growing number of scientists, journalists and climate activists believe that we need to reduce emissions more deeply if we are to have a good chance of avoiding climate catastrophe.
–2020 Targets: It projects a 17% reduction in greenhouse gases (ghg) from 2005 levels by 2020. This is about 3% below U.S. ghg levels in 1990; 1990 is the baseline year used by the nations of the world. There is an additional 10% reduction of ghgs projected via investments in the prevention of deforestation outside the United States, and there could be a few percent more reductions through other means. This could add up to about a 20% reduction by 2020 compared to 1990 levels. The world’s international climate negotiators have called for industrialized countries to reduce their emissions by 25-40% below 1990 levels by 2020.
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