The Clean Energy Bill and What It Means for Solar

by BradB from 1BOG, posted on October 8th, 2009.

The American Clean Energy and Security Act (ACES) (also known as the Waxman-Markey Bill) was approved by the House of Representatives on June 26, 2009. 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.” Internationally, the House’s passage of this bill “established a marker for the United States when international negotiations on a new climate change treaty begin in Copenhagen later this year.

The ACES bill aims for a greater investment in clean energy, greater energy efficiency, the creation of a cap and trade system, and provisions for a smooth transition to a clean energy economy. The passage of ACES with its various clean energy implications bode well for the future of solar.

The components of the ACES bill are as follows:

- a Renewable Electricity Standard (RES) that requires large utilities in each state to produce an increasing percentage of their electricity from renewable sources (including solar).
- A system of Cap and Trade involving emissions cuts (goal of 80% by 2050), emissions  permits for regulated industries, and carbon offsets. The bill sets aside a portion (9.5%) of the carbon allowances for states to use to fund renewable energy and energy efficiency projects.
- Investment in energy technology ($90 billion to energy-efficiency and renewable-energy technologies, $60 billion to carbon-capture-and-sequestration technology, $20 billion to electric vehicles and other advanced automotive technologies, $20 billion for basic scientific research and development). Regarding solar specifically, the bill allows for the federal government to fund solar installations on public buildings through entering into a 20-year Power Purchase Authority (PPAs).
- investment in energy efficiency programs, and the setting of stronger building codes and product efficiency standards.
- Smarter grids, including provisions to expedite the overhaul of our transmission system to make room for new renewable energy (allows for regional transmission grid planning and federal siting authority)
- Measures designed to ease the transition into a low carbon economy by providing assistance to those impacted by a cap – including industry, affected sectors of America’s workforce, and low income households.. Along these lines, the bill establishes a “Green Bank” (aka the Clean Energy Deployment Administration) to provide seed money to domestic companies developing cutting-edge renewable technologies including solar.

The long awaited senate climate bill was introduced this past weeks; named the “Clean Energy Jobs and American Power Act,” the bill calls for a 20 percent reduction of greenhouse gas (GHG) emissions over 2005 levels by 2020 and an 80 percent reduction by 2050. So far there are 45 supporters and counting.

Lets hope this bill is the beginning of a positive clean energy and energy efficiency trend, and that the next few months see the passage of a clean energy bill by the senate and a firm commitment to emissions reductions by the US at the Copenhagen climate change discussions.