Update: US EPA Comments on Draft American Clean Energy and Security Act

Posted on April 22, 2009 by Warren Brazier

Following up from my previous post on the introduction of the Waxman-Markey Discussion Draft, the US Environmental Protection Agency (E.P.A.) yesterday released its analysis of the draft American Clean Energy and Security Act of 2009 (ACESA).  Here is a copy of the full analysis, or if you prefer, the summary.

What is most interesting to me, as the NY Times reported, the E.P.A.’s analysis suggests that under the draft plan, the share of low-carbon and zero-carbon energy sources — including renewables like wind and solar, as well as nuclear and carbon-capture plants — would rise to 26 percent of the nation’s energy mix by 2030, and could reach 46 percent by 2050. Without the policy, that share would remain at a steady 14 percent, the E.P.A. estimated. 

In short, the ACESA would be an incredible boon to the renewable energy sector in the United States, and I would contend for Canada as well, for two principal reasons. First, the draft Act provides for carbon offsets to be obtained from both domestic and international sources. Good news for Canada. Second, any US climate change legislation would certainly have to be followed to a great extent in Canada. I just can't imagine a US carbon regulated marketplace allowing trade with an non-carbon regulated Canadian market.

Now, before we get ahead of ourselves, we must understand that the US Congress is currently examining the draft legislation, and in all likelihood, the draft ACESA will be watered down by the special interests. But the renewable energy sector in Canada would be well served to follow the progress of this Act because its passing will mean a tremendous amount to our renewable energy sector, especially for the offset market but also for energy exports.  At minimum, Canadian companies looking to trade with the US, will have to comply with the new US carbon standards and regulations. 

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Meanwhile...South of the Border: Introducing The American Clean Energy and Security Act

Posted on March 31, 2009 by Warren Brazier

President Obama promised a commitment to green energy, and today, the United States Committee on Energy and Commerce delivered, through the introduction of new federal clean energy legislation that, according to the press release, "will create millions of clean energy jobs, put America on the path to energy independence, and cut global warming pollution."  

The American Clean Energy and Security Act of 2009 (ACESA) is still in the draft stage, but it certainly looks promising, and I must admit to a bit of envy of our American friends and their progressive legislators.  Here is the Discussion Draft Summary (click to download) which is definitely worth reading (all I can say is wow!).  The New York Times' Green Inc. blog weighs in on the reaction to the controversial legislation.

The ACESA will focus on four principle areas:

  1. Clean Energy: which includes renewable energy load requirements at 6% in 2012 and a whopping 25% in 2025, carbon capture and sequestration, clean fuels and vehicles, smart grid and electricity transmission.
  2. Energy Efficiency: which includes new building and appliance standards, energy rebates, new fuel and emissions standards, and national energy efficiency standards.
  3. Reducing Global Warming Pollution: which includes a market-based program of "allowances" and "offsets" for electric utilities, oil companies, large industrial sources and other entities (looks alot like cap and trade), steps to preventing international deforestation and the introduction of additional greenhouse gas standards.
  4. Transitioning to a Clean Energy Economy: which includes measures to ensure domestic competitiveness in the form of rebates for companies which produce commodities that are traded globally, the promotion of green jobs, consumer assistance, export of clean tech and a high level response to global warming.

In Canada, we can't even begin to compare our green energy legislation to the Americans, there is definitely nothing like the proposed ACESA, which is definitely too bad, but perhaps also a goal for our country's leaders.  For some recent Canadian context, the federal government has just invested $140M with the major oil companies for carbon-capture projects (ugh!). In addition, the feds have not renewed the very successful (and green economy stimulating) Canadian ecoENERGY for Renewable Power program. 

In all, it remain to be seen what will become of the surely to be ACESA, but judging by the broad reach of the proposed legislation, the Obama Administration means business when it comes to the green economy. One thing is abundantly clear - the United States sees clean energy, energy efficiency and fighting climate change as part of the new world order and critical to the future of America. This leadership is something Canadians should recognize and the smart ones will harness the momentum from south of the border and work to create our own carbon-reduced green energy economy.  The green energy technology revolution:  you can't stop it, you can only hope to contain it.

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