Legal Definitions - American Clean Energy and Security Act of 2009

The American Clean Energy and Security Act of 2009 (ACES) was a significant legislative proposal in the United States aimed at transforming the nation's energy landscape. Often referred to as the Waxman-Markey bill, its primary objectives were to foster a clean energy economy, substantially reduce greenhouse gas emissions, and enhance America's energy independence.

A central component of the ACES was the establishment of a "cap-and-trade" system for greenhouse gases. Under this system, a limit (cap) would have been set on the total amount of emissions allowed from certain industries. Companies could then buy and sell (trade) emission allowances, creating a market incentive to reduce pollution. The bill also set ambitious targets, aiming to cut U.S. greenhouse gas emissions by at least 83% below 2005 levels by the year 2050.

Beyond cap-and-trade, the ACES sought to accelerate the development and deployment of clean energy technologies. It proposed various regulations, funding for research and development, and grants for projects focused on innovations like carbon capture and storage, as well as initiatives to improve energy efficiency across different sectors. The overarching vision was to decrease reliance on foreign energy sources and stimulate the creation of millions of new jobs within the clean energy industry.

Despite passing the House of Representatives by a narrow margin in June 2009, the American Clean Energy and Security Act ultimately did not become law, as it never received a vote in the Senate.

Here are some examples illustrating the potential impact of the American Clean Energy and Security Act of 2009:

• Cap-and-Trade System for Industrial Emissions:

  Scenario: A large cement manufacturing company in the Midwest, which produces significant carbon dioxide emissions as a byproduct of its operations, is facing new environmental regulations.

  Explanation: Had the ACES become law, this company would have faced a "cap" on its total greenhouse gas emissions. To comply, it might have invested in new, more efficient kilns to reduce its own emissions, or it could have purchased "allowances" from other companies that had successfully reduced their emissions below their allocated cap. This system would have created a financial incentive for the cement company to innovate and reduce its environmental footprint rather than simply paying fines.

• Grants for Clean Energy Research and Development:

  Scenario: A research university's engineering department is developing a groundbreaking method for capturing carbon dioxide directly from industrial smokestacks and converting it into useful materials like building aggregates.

  Explanation: The ACES specifically aimed to encourage such innovations. Under the proposed act, this university project could have been eligible for federal grants or funding programs designed to accelerate the research, development, and demonstration of carbon capture technologies. This would have directly supported the bill's goal of fostering new clean energy solutions and reducing overall emissions.

• Promoting Energy Efficiency and Green Job Creation:

  Scenario: A small town in rural America is considering a project to upgrade its municipal buildings with better insulation, LED lighting, and a small solar array, while also training local workers for these installations.

  Explanation: The ACES sought to promote energy efficiency standards and create "green jobs." This town's project would align perfectly with the act's intentions, as it would reduce the town's energy consumption (contributing to energy independence), lower its carbon footprint, and provide employment opportunities for local residents in the clean energy sector, such as solar panel installers or energy auditors.