ACES Passes House, Heads to the Senate!

The House of Representatives passed the most historic piece of environmental legislation its taken up in the past 20 years on Friday June 26, 2009.

The Democratic majority held firm as the American Clean Energy and Security (ACES) Act garnered 219 votes. Thirty-one of those votes came from LivPAC-endorsed candidates, including a couple, such as Rep. Rush Holt, (D-N.J.) that The Politico referred to as "a key fence-sitter."

The American Clean Energy and Security (ACES) Act will significantly reduce the country’s greenhouse gas output by imposing a "cap and trade" pollution policy that limits how much carbon polluters can emit.

The bill has been controversial in several congressional districts across the country that rely either on coal-powered plants or coal mining to sustain their economy. Thanks to the work Congressman Earl Blumenauer (D-Ore.) did through LivPAC to help Democrats in conservative districts talk about environmental values, several members of Congress, including Reps. Kurt Schrader (D-Ore.), Betsey Markey (D-Colo.), Bruce Braley (D-Iowa), and Steve Driehaus (D-Ohio) were able to take a critical stand for tougher environmental regulation of greenhouse gases.

The bill now goes onto the Senate where LivPAC Senators Jeff Merkley (D-Ore.), Kirsten Gillebrand (D-N.Y.), Mark Udall (D-Colo.), and Tom Udall (D-N.M.) will be responsible for making sure that the body passes legislation that will reduce carbon output and help save the planet.

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What Congress Must Do by the End of 2009 to Create Jobs, Reduce Oil Use and Cut Pollution

New industries. New jobs. Lower energy bills. Oh, and less global warming. This is why the Center for American Progress' Daniel Weiss says Congress must pass legislation dealing with climate change. And here's what he says they should do.

by Daniel J. Weiss, Senior Fellow and Director of Climate Strategy Center for American Progress Action Fund

President Obama knows that a transition to clean energy sources is one of the pillars of a strong 21st century economy. This would boost employment, cut oil use, strengthen national security, and reduce global warming pollution. In an April 14th speech at Georgetown University, the President declared that a "new foundation for growth and prosperity," requires "the renewable energy that can create millions of new jobs and new industries."

In response to this need, House Energy and Commerce Committee Chair Henry Waxman and House Energy and Environment Subcommittee Chair Edward Markey recently released the American Clean Energy and Security Act of 2009. This draft bill establishes a three-part program to increase energy efficiency, invest in renewable energy resources such as the wind and sun, and reduce global warming pollution. The Committee plans to pass the bill by Memorial Day, with full House action likely this summer. Congress must pass the American Clean Energy and Security Act to create jobs, reduce oil use and cut pollution.

Energy efficiency is the "low hanging fruit" of clean energy policies. The US uses significantly more electricity per person than other nations. US per capita consumption is 14,240 kilowatt-hours per year, compared to 8,459 kilowatt-hours per year in Japan. Investments in simple and advanced efficiency technologies would pay for themselves through lower energy use and bills.

ACESA includes a national Energy Efficiency Resource Standard (EERS). It would require utilities to reduce electricity demand, slashing energy costs while creating jobs manufacturing energy efficient technologies, weatherizing homes, and installing energy efficient appliances. An EERS would create 220,000 net permanent jobs and reduce energy costs by $168.6 billion for consumers and businesses.

An EERS could help cut pollution too. McKinsey & Company found "Almost 40 percent of [emissions] abatement could be achieved at 'negative marginal cost,' meaning that investing in these [efficiency] options would generate positive economic returns over their lifecycle."

Eighteen states already have EERS programs that have reduced electricity demand. While Oregon does not currently have one, the Energy Trust of Oregon has created incentives for upgrades in efficiency and for the use of renewable energy.

Another program to create jobs, develop new technologies, and cut pollution is a national renewable electricity standard (RES). ACESA would require that 25 percent of U.S. electricity come from wind, solar, geothermal and other renewable energy sources by 2025. This would create nearly 300,000 jobs, save consumers $64.3 billion, and help the U.S. regain its lost leadership in the development of new clean energy technologies. Currently, Oregon, 27 other states and in the District of Columbia have an RES.

Reduction of fossil fuel energy use through these two programs, however, will not reduce greenhouse gas pollution by enough to slow the growing threat of global warming. ACESA also includes a cap-and-trade program to require companies to pay for their greenhouse gas pollution rather than emit it into the atmosphere for free. This program would achieve a 20 percent reduction (from 2005 levels) in pollution by 2020, and an 83 percent cut by 2050. These reduction targets were endorsed by a number of Fortune 500 companies, including Duke Energy, Shell Oil, and General Electric.

ACESA includes measures to prevent sudden price hikes in the cost of pollution allowances. Banking and borrowing allowances should prevent price volatility. When allowance prices are low, companies could "bank" them, and "borrow" them when they are high. In addition, companies could "offset" their emissions by investing in projects that capture carbon pollution, such as forest protection.

A policy to reduce pollution has strong potential to bolster the economy. The EPA noted: "[S]ubstantial cost savings could be achieved by combining direct emissions policies (e.g. cap-and-trade or carbon tax) with technology push policies (e.g. technology and R&D incentives) that correct for the market failure associated with the fact that the inventor of a new technology can not appropriate all of the associated social benefits."

Congress must follow President Obama's lead by enacting a real plan to create jobs, reduce oil use, enhance natural security, and cut pollution. This would help revitalize the economy and launch us on a path towards long term sustainable growth.

Daniel J. Weiss is a Senior Fellow and the Director of Climate Strategy at the Center for American Progress, where he leads the Center's clean energy and climate advocacy campaign. Before coming to American Progress, he spent 25 years working with environmental advocacy organizations and political campaigns. Weiss is an expert in energy and environmental policy; legislative strategy and tactics; and advocacy communications.

The Committee for a Livable Future
(LivPAC)

The Committee for a Livable Future (LivPAC) is a political action committee (PAC) founded in 1996 by Congressman Earl Blumenauer to help elect Democratic Members of Congress who support the policies and principles that will make the U.S. government a partner in building and maintaining livable communities that embody smart growth principles.

Since 1996, LivPAC has made endorsements in more than 160 races for Congress. Earl has visited over two hundred communities since his election to Congress, carrying this message.