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Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
Ase climatebill side-by-side_07.10
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Ase climatebill side-by-side_07.10

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  • 1. ACES/ACELA/APA Side by Side A Comparison of Current Legislation The U.S. Congress is considering a number of climate and energy proposals which, if enacted, could set a new course for clean and efficient energy in the United States. This document compares, in detail, the energy efficiency provisions in the major House and Senate bills: the American Clean Energy and Security Act, American Clean Energy Leadership Act, and American Power Act. Table of Contents Introduction to the Legislation ............................................................................................................................................................................... 2 Energy Efficiency Provisions.................................................................................................................................................................................... 3 Renewable Electricity Standard ................................................................................................................................................................................. 3 Appliances, Equipment, Lighting, Products and Standards ....................................................................................................................................... 4 Building Energy Efficiency .......................................................................................................................................................................................... 7 Federal Energy Management ................................................................................................................................................................................... 14 Transportation ......................................................................................................................................................................................................... 15 Smart Grid and Transmission ................................................................................................................................................................................... 18 Industrial Energy Efficiency ...................................................................................................................................................................................... 19 Research and Development ..................................................................................................................................................................................... 21 Financing .................................................................................................................................................................................................................. 22 National Energy Strategy ......................................................................................................................................................................................... 23 Assistance to State and Local Governments ............................................................................................................................................................ 24 Miscellaneous .......................................................................................................................................................................................................... 24 Climate Provisions................................................................................................................................................................................................. 29 1
  • 2. Introduction to the Legislation U.S. House of Representatives U.S. Senate The American Clean Energy and Security Act of The American Clean Energy Leadership Act (S. The American Power Act (APA) was introduced 2009 (H.R. 2454 or ACES) passed the House on 1462 or ACELA) passed the Senate Energy and by Senators John Kerry (D-Mass.) and Joe June 26, 2009 by a vote of 219 to 212. ACES Natural Resources Committee on June 17, 2009. Lieberman (I-Conn.) to the Senate on May 12, combines standards and incentives to promote ACELA is an energy bill that contains many 2010. The long-awaited climate bill would clean energy and energy efficiency technologies energy policies similar to ACES, but does not establish a greenhouse gas pollution reduction with a firm cap on greenhouse gas emissions. include a greenhouse gas pollution reduction program and encourage development of The American Council for an Energy Efficient program. ACEEE estimates that, in 2030, the nuclear power, offshore oil and gas drilling, Economy (ACEEE) estimates that, in 2030 alone, energy efficiency provisions in ACELA could coal, clean transportation, and, to a lesser the energy efficiency provisions in ACES could reduce energy consumption by about 4.3 quads, extent, energy efficiency and renewable energy. reduce energy consumption by about 8.8 avoid about 65 MMT of carbon emissions, and quadrillion BTU, avoid about 539 million metric save about $36 billion in net consumer savings, tons (MMT) of carbon emissions, and save or about $240 per household. about $62 billion in net consumer savings, or $486 per household. The Alliance to Save Energy is a coalition of prominent business, government, environmental and consumer leaders who promote the efficient use of energy worldwide to benefit consumers, the environment, the economy, and national security. For more information on the Alliance policy team and our resources, visit us online at www.ase.org/policy or call our policy team staff (202) 857-0666. Updated June 30, 2010
  • 3. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act Sponsor Waxman-Markey Bingaman-Murkowski Kerry-Lieberman Status Passed House June 26, 2009 Passed Senate Energy and Natural Introduced May 12, 2010 Resource Committee June 17, 2009 Renewable Electricity Standard Energy ACES Sec. 101- Requires electricity utilities to meet a ACELA Sec. 132- Requires electricity APA Sec. 1601- Declares renewable Efficiency and combined efficiency and renewable electricity standard, utilities to meet a renewable energy energy and energy efficiency critical to Renewable starting at 6% renewable generation in 2010 and standard, starting at 3% renewable the purpose of the Act and recommends Electricity increasing to reach 20% from 2020 through 2039. Energy generation in 2011 and increasing to measures to accelerate progress: Standard efficiency may be used to meet up to one quarter of the reach 15% from 2021 through 2039. With mandates for the deployment of clean requirement (5% of total in 2020). With a governor’s a governor’s petition, energy efficiency and renewable energy; innovative petition, that amount may be increased to two-fifths of may be used to meet 26.67% of this funding mechanisms for clean energy the requirement (8% of total in 2020). requirement (4% of total in 2021). technologies; transmission Electricity savings may be customer savings, reductions Electricity savings may be customer improvements; improved building codes; in distribution system losses, and savings from combined savings, reductions in distribution system and improved appliance standards. The heat and power and fuel cells, compared to business-as- losses, and savings from combined heat section does not contain specific usual projections. To claim credit for energy savings, and power. To qualify, energy savings mandates, but suggests the intent to electric providers have to have played a ‘significant role must be “properly attributable to enact the additional measures, likely in achieving the savings,’ but can be with government measures carried out by” the utility. through ACELA. funding. Savings achieved due to building codes or Savings achieved due to building codes or appliance efficiency standards do not count toward this appliance efficiency standards do not requirement. The Federal Energy Regulatory Commission count toward this requirement. The (FERC) will develop standards for measurement of Department of Energy (DOE) will develop energy savings and third-party verification, methods for standards for measurement of energy deemed savings and extrapolation from representative savings and third-party verification, samples, and other methods. methods for deemed savings, and other Electric suppliers may contract with other utilities, methods. states, or third parties for electricity savings in the same An electric utility may buy credits for state, but (unlike for renewables) there is no efficiency renewable electricity or efficiency from credit trading market and no banking of savings. They others, may bank credits for up to three may also buy out of the requirement for $25 per years, or may make an alternative megawatt-hour (MWh) to pay for state renewable compliance payment of $21 per MWh, to energy and energy efficiency programs. Failure to be used by the state for investment in comply with the standard incurs a penalty of twice this renewable energy, nuclear power, coal amount. power with carbon capture, electric Retail electric suppliers producing less than 4,000,000 vehicles, or efficiency projects. Utilities
  • 4. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act MWh annually are exempt. Electricity generated by may petition to have this requirement nuclear power plants placed in service after the waived if the increase in electrical rates enactment of this act, hydroelectric plants, and fossil fuel would exceed 4% in a year. plants with carbon capture and sequestration is not Retail electric suppliers producing less included in calculating the base amount of electricity than 4,000,000 MWh annually are sold by an electric utility. exempt, as are those in Hawaii. Electricity FERC may delegate authority for enforcement to the generated by nuclear power plants placed states, and allow them to use their own measurement in service after the enactment of this act, and verification standards. hydroelectric and municipal solid waste See also peak load reduction goals in Sec. 144 under plants, and fossil fuel plants with carbon Smart Grid. capture and sequestration is not included in calculating the base amount of electricity sold by an electric utility. The DOE is to develop a loan program to assist utilities in carrying out projects to attain compliance with this measure. Not later than January 15th, 2017, and then every five years, the DOE is to review the program and make recommendations to Congress. Appliances, Equipment, Lighting, Products and Standards Reforms to DOE ACES Sec. 213(a) - Clarifies that DOE can set more than ACELA Sec. 221- Allows DOE to adopt No requirement. See section 1601, above. Appliance one energy/water efficiency or consumption standard quickly a consensus test procedure, as in Efficiency for a given covered product, including design ACES Sec. 213(b). Also allows individuals Standards requirements, but prohibits DOE from setting a standard to petition DOE to create or amend the Program for any component of a covered product without specific test procedure for a covered product. authorization. ACELA Sec. 223- Requires DOE to respond ACES Sec. 213(b) - Allows DOE to adopt quickly (through to a petition for an amended appliance a direct final rule) a test procedure for determining the efficiency standard within 180 days and, if energy use of a covered product from a consensus granted, to set the standard within three recommendation of key stakeholders or that is used in a years. state or another nation. ACELA Sec. 229- Directs DOE to conduct a 4
  • 5. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act ACES Sec. 213(d) - Requires DOE when developing new study on the degree of compliance with energy efficiency standards for a covered product to energy standards for appliances, including consider, in addition to current criteria, carbon emission an investigation of compliance rates and reductions, the impact on energy prices, smart grid options for improving compliance, capabilities, and the existence of more efficient including enforcement. prototypes. Also modifies the “rebuttable presumption” to set a firmer floor for standards at five years simple payback ACES Sec. 213(e) - Requires the manufacturers of covered products to report to DOE annually their compliance with requirements, the economic impacts of proposed standards, and their annual shipments of each covered product. ACES Sec. 213(j) - Would increase flexibility for state building codes to address products that are covered under federal appliance standards, without being preempted by the federal standards. States could require equipment in new construction to meet a level set in national model building energy codes (see Sec. 201 below), or use that level as a baseline in performance codes. Appliance ACES Sec. 212- Establishes consensus energy efficiency ACELA Sec. 227- Establishes energy No requirement. See section 1601, above. Efficiency standards for water dispensers, hot-food-holding efficiency standards for commercial gas- Standards cabinets, portable electric spas, and commercial gas- and and oil-fired warm-air furnaces, as in ACES oil-fired warm air furnaces. Sec. 212. ACES Sec. 213(c) - Repeals the existing test method for measuring the energy consumption of televisions, and requires DOE to prescribe a new test method for televisions within one year. Lighting ACES Sec. 211(a) - Establishes efficiency standards for ACELA Sec. 224- Establishes efficiency No requirement. See section 1601, above. Efficiency outdoor luminaires, increasing from 50 lumens per watt standards for portable light fixtures as in Standards for luminaires manufactured in or after 2016 to 70 ACES Sec. 211(b). lumens per watt for luminaires manufactured in or after ACELA Sec. 225- Sets a standard for GU-24 2018. Also sets a standard for outdoor high light output base light bulbs as in ACES Sec. 211(b). lamps manufactured in or after 2017 of 45 lumens per ACELA Sec. 226- Directs DOE to establish 5
  • 6. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act watt. efficiency standards for incandescent ACES Sec. 211(b) - Requires that portable light fixtures reflector lamps as in ACES Sec. 211(b). manufactured on or after 2012 be an Energy Star fluorescent light fixture, an Energy Star fixture with a GU-24 socket, or an LED fixture that meets specified criteria (no new incandescent lamps). Also specifies that GU-24 base light bulbs shall not be incandescent. Also, directs DOE to establish efficiency standards for bulge incandescent reflector lamps no later than a year after enactment of this act, and to amend standards for all reflector lamps by January 1, 2015. Energy Star ACES Sec. 143- Expands the energy guide label on ACELA Sec. 222- Requires DOE and EPA to No requirement. See section 1601, above. Program and appliances to indicate smart grid capability, including - come to agreement on several issues Appliance potential dollar savings when used in a smart grid- related to the Energy Star program Labeling capable utility system. that the two agencies jointly ACES Sec. 213(h) - Requires DOE to add to the energy administer, including the roles and guide labels information on the estimated total annual responsibilities of each agency, a carbon dioxide and other greenhouse gases emissions process for high-level decision- due to the appliances, including both emissions due to making, a process for mediation of average energy use of the product and any direct disagreement, and a biannual emissions. program review. ACES Sec. 219 – Requires EPA to review every three - review, and update as needed, Energy years the Energy Star criteria for the ten models in each Star criteria for each product category product category that consume the most energy, and to every three years and when market update the standards as necessary. Also requires EPA share reaches 35% or other periodically to verify that Energy-Star-labeled products designated level, meet Energy Star criteria. Directs EPA and DOE to - require a demonstration of establish a rating system for Energy Star products to compliance with the Energy Star communicate to consumers the relative energy criteria by qualified products, and efficiency of the products with the Energy Star label, - develop standardized building energy unless the two agencies agree that such a system would audit methods. diminish the value of the Energy Star brand to Also specifies that DOE is in charge of consumers. Authorizes $5 million per year, from 2010 Energy Star for solid state lighting. onward, to carry out this section. ACELA Sec. 232- Directs DOE and EPA 6
  • 7. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act ACES Sec. 274 – Requires EPA to study the feasibility of a jointly to carry out a study to determine national program that would measure, label and publicly the feasibility and advisability of adding a disclose the carbon content of products and materials new tier, the “Energy Superstar Tier,” to sold in the United States. Also requires EPA to establish a the Energy Star program. The new tier voluntary national program for the disclosure of would encompass the top products or products’ carbon content. Authorizes $5 million for the buildings that are cost-effective, or EPA study and $25 million per year from 2010 to 2025 approximately the top 5 percent of the for EPA to implement the carbon disclosure program. market share of a given category, for at See also ACES Sec. 142 and 143 under Smart Grid below. least a portion of the Energy Star product categories. See also ACELA Sec. 281 under Building Labeling below. Deployment of ACES Sec. 214 - Establishes the Best-in-Class Appliances APA Sec. 2201(n)(3)(c)- Similar to ACES Energy Efficient Deployment Program, administered by DOE, to award: Sec. 214, though less prescriptive- Appliances - bonuses to retailers for increasing the sales of high Establishes the Best-in-Class Appliances efficiency equipment, electronics, and appliances Deployment Program, administered by - bonuses to manufacturers for developing DOE, to reward retailers, distributors, “superefficient” best-in-class products. and manufacturers for supplying and - bounties to retailers and manufacturers for the selling the most high-efficiency replacement and recycling of old, inefficient household appliances. appliances. ACES Sec. 218 – Directs EPA to establish a program to facilitate the replacement of wood or pellet stoves that do not meet federal performance standards. Would authorize $20 million per year from 2010 to 2014 to carry out this section. Building Energy Efficiency Building Energy ACES Sec. 201- Sets targets for the revision of national ACELA Sec. 241- Sets targets for the Codes model building energy codes to achieve 30% savings revision of national model building codes No requirement. See section 1601, above. below baseline code by one year after enactment; 50% of 30% savings below baseline code in the by the end of 2014 for residential buildings and 2015 for first code cycle after the beginning of commercial buildings; and an additional 5% reduction 2010 and 50% savings starting in 2016, every three years thereafter, through 2029 and 2030 with DOE to set further targets on a path respectively. DOE would adopt model codes developed to achieve zero-net-energy buildings. 7
  • 8. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act by independent organizations if they meet the targets, Would require DOE to support updates by and otherwise develop its own. code development organizations to Requires that the national codes would automatically national model building energy codes at apply to localities failing to achieve the target codes least every three years to achieve the within one year of the national code revision. Within two targets, and only if necessary to issue years of adoption of revised codes, a state would be modified versions of the codes that do required to demonstrate at least 90% compliance in new meet the targets. and renovated buildings (for the first seven years after Would direct states to adopt codes that enactment, 50% compliance and documentation of achieve as much savings as the national progress toward better compliance are sufficient). If models within three years of their states and local governments failed to enforce the codes, revision, and to achieve compliance in DOE would be responsible for enforcing them. 90% of building space (or no more than Directs DOE to use 0.5% of the value of emissions 5% excess energy use) within three allowances established by this bill to provide grants to additional years, except that they would states and local governments that comply with this have eight years from enactment to ramp section for development, adoption, implementation and up compliance). States that do not meet enforcement of the codes. these goals would be directed to explain to DOE the status of their efforts to reach adoption and compliance, and their plan to do so. Directs DOE to provide funding to states to incentivize adoption and compliance with the codes and to support achievement of compliance goals. DOE would also provide funding to local governments, in non-compliant states that meet the goals. Would authorize $100 million per year from 2009 to 2013 for these purposes. Community ACES Sec. 207- Establishes a grant program in the Building Code Department of Housing and Urban Development (HUD) Administration to support local building code enforcement departments Grant to enforce building, electrical, energy, fire, fuel gas, mechanical, and plumbing codes. $20 million is appropriated for each of fiscal years 2010 to 2014. 8
  • 9. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act Building ACES Sec. 204- Directs EPA to establish a model building ACELA Sec. 281- Directs EPA, in Labeling and energy performance labeling program for new consultation with DOE, to establish a Public construction. Directs EPA, in some cases with DOE, to: building energy performance information Information - improve existing building energy consumption program. Directs EPA and DOE to: databases; - improve existing building energy - establish methods to measure achieved and consumption databases; designed performance for different building - establish methods to measure types; achieved and designed - create a model label to display design and performance for different performance information for various building building types; types; - establish formats, including - conduct demonstration projects for different certificates and labels, to display building types; performance information for - work with states and local governments to various building types; implement the labeling program; - conduct demonstration projects - implement the labeling program in DOE and EPA for different building types; buildings and encourage other federal agencies - establish a public outreach to do so; and program to education businesses and consumers on building - establish a public outreach program to education energy efficiency and the labeling businesses and consumers on building energy program; efficiency and the labeling program. - work with states and local States that adopt the labeling requirements of this governments to implement the program or a plan to implement the program may use labeling program; emission allowances from the state SEED Accounts. - work with federal agencies to implement the program in 90% of new and 30% of existing buildings; and - require state and local governments to label federally funded buildings. Building ACES Sec. 202- Directs EPA, with DOE, to establish a ACELA Sec. 262-265- Similar to ACES 202, No requirement. See section 1601, above. Retrofits national building retrofit program for the residential and though less prescriptive: Directs DOE to commercial sectors, the Retrofit for Energy and establish a national building retrofit Environmental Performance (REEP) program. The program for the residential and program is funded through the State Energy and commercial sectors. Funding would go to 9
  • 10. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act Environmental Development (SEED) accounts that will states based on performance criteria. receive emissions allowances under this bill. States are to States could contract with third parties to use the funds to create incentives for, or reduce financial implement the building retrofit program. barriers to, improved energy and environmental Residential funding amounts are based on performance in buildings. Residential funding amounts estimated energy savings, either are based on estimated energy savings, either projected projected from a specific set of measures from a specific set of measures to be implemented or to be implemented or demonstrated after demonstrated after the retrofit. Commercial funding the retrofit. Commercial funding amounts, allocated per square foot of commercial area, amounts, allocated per square foot of are based on energy savings from a benchmarking commercial area, are based on energy system or from simulation software. savings from a benchmarking system or from simulation software. ACELA Sec. 266- Provides grants to states to establish or expand state revolving finance funds to support financing for energy efficiency and renewable energy improvements to existing homes and residential buildings. ACELA Sec. 251- Authorizes $1.7 billion a year for the Weatherization Assistance Program for FY2011-FY2015 Manufactured ACES Sec. 203- Establishes the Manufactured Home ACELA Sec. 242- Establishes the No requirement. See section 1601, above. and Assisted Replacement Program, which would provide rebates to Multifamily and Manufactured Housing Housing low-income families living in pre-1976 manufactured Energy Efficiency Grant Program, which homes that purchase Energy Star-rated manufactured would provide grants to carry out energy homes. The maximum rebate available is $7,500 per efficiency programs for multifamily household. buildings and pre-1976 manufactured ACES Sec. 283- Requires HUD to issue regulations to housing. establish annual energy efficiency participation incentives to encourage participants in HUD programs to achieve substantial improvements in energy efficiency. ACES Sec. 284- Sets forth minimum energy efficiency standards for single family and multifamily buildings that receive HUD assistance, including requirements to comply with a building energy code under Sec. 201, 10
  • 11. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act ASHRAE Standard 90.1-2007, or the 2009 International Energy Conservation Code, or for existing buildings to achieve a 20% reduction in energy use. Also establishes enhanced energy efficiency standards for additional credit in HUD programs based on Energy Star, LEED, Green Globes, and other systems. ACES Sec. 285- Authorizes HUD to establish a program to demonstrate the effectiveness of funding a portion of the costs of meeting the enhanced standards in Sec. 284 in at least 50,000 homes. ACES Sec. 292- Requires HUD to establish incentives for increasing the energy efficiency of multifamily housing based on the standards in Sec. 284, including a discount on mortgage insurance, an increase in the mortgage cap, or a reduction in the owner’s contribution. ACES Sec. 293- Specifies energy efficiency requirements for manufactured homes with new federally insured mortgages and specifies who certification and quality assurance criteria. ACES Sec. 294- Requires HUD to develop and implement a pilot program to facilitate the financing of cost- effective capital improvements to improve the energy efficiency of assisted housing projects. ACES Sec. 297- Requires that state and local housing affordability strategies include strategies to encourage sustainable development for affordable housing, and coordinate with transportation strategies on access to public transportation. ACES Sec. 298- Authorizes HUD to make grants to nonprofit organizations for use in training, educating, supporting, or advising community development organizations in clean energy in affordable housing and economic development; and for loans and grants to community development organizations for similar purposes. 11
  • 12. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act ACES Sec. 299- Requires HUD HOPE VI residential construction to comply with the mandatory items and some non-mandatory items on the Green Communities Criteria Checklist, and nonresidential construction to meet a green buildings rating system level to be chosen by HUD. ACES Sec. 299B- Requires the Housing Assistance Council, which helps local organizations provide affordable housing for rural homeowners, to encourage all grantees to comply with minimum efficiency standards under Sec. 284 and to provide incentives for meeting the enhanced standards. ACES Sec. 299C- Requires that each tribe, agency, organization, corporation, or any other entity that receives assistance from the HUD Office of Rural Housing and Economic Development ensure that funded buildings comply with the minimum efficiency standards under Sec. 284 and be given incentives for meeting the enhanced standards. ACES Sec. 299G- Requires HUD to obtain information from public housing agencies regarding the energy costs for HUD-supported public housing. Other Buildings ACES Sec. 261- Amends authorization of an energy Grant Programs efficiency and sustainability grant and loan program for public institutions to make nonprofit hospitals and public health facilities eligible. It also increases the maximum per-project grant amount. ACES Sec. 296- Requires HUD to make grants to states, cities and urban counties, Indian tribes, and insular areas to carry out energy efficient improvements in new and existing single-family and multifamily housing. These grants will be modeled after the Community Development Block Grant Program. 12
  • 13. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act Energy Efficient ACES Sec. 286- Requires HUD to assign 125% credit to Mortgages and Fannie Mae and Freddie Mac for the purchase of Home Financing mortgages that comply with the existing HUD housing goals and either support housing that meets the minimum efficiency standards in Sec. 284 or are location efficient mortgages, and to provide additional credit for purchases that support the enhanced standards in Sec. 284. ACES Sec. 287- Requires Fannie Mae and Freddie Mac to develop loan products and flexible underwriting guidelines to facilitate a secondary market for energy- efficient and location-efficient mortgages on housing for very low-, low- and moderate-income families. ACES Sec. 288- Requires HUD to establish a method to consider utility bill savings in its underwriting standards for mortgages on single-family housing meeting the minimum efficiency standard in Sec. 284. Sets a goal to insure at least 50,000 of these mortgages through 2012. ACES Sec. 289- Requires HUD to establish a commission to develop model mortgage products and underwriting guidelines to provide incentives for energy efficiency and location efficiency, and to carry out a public awareness, education, and outreach campaign to inform and educate residential lenders and prospective borrowers regarding energy-efficient mortgages and location- efficient mortgages. ACES Sec. 290- Requires banks to track the number and dollar amount of energy-efficient mortgages and location-efficient mortgages. ACES Sec. 299A- Requires that real estate appraisals for federally related transactions take into account any renewable energy sources, and energy efficiency or energy-conserving improvements and features, of a property. ACES Sec. 299E- Requires federal banking agencies to 13
  • 14. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act prescribe guidelines to encourage banks and credit unions to establish “green banking” centers to provide consumers with information on obtaining a home energy rating, energy efficient mortgages, and related information. ACES Sec. 299F- Requires the Government Accountability Office to examine the impact of The GREEN Act (Sections 281-308) on the availability of affordable mortgages at least every 3 years. ACES Sec. 299I- Authorizes HUD to guarantee the portion of mortgages, up to 10%, that is used to finance eligible sustainable building elements, including energy efficiency. Buildings RD&D ACES Sec. 173- Directs DOE to provide funding for higher ACELA Sec. 291- Authorizes the education institutions to create Building Assessment “Residential High-Performance Zero-Net- Centers that would conduct research and development Energy Buildings Initiative” to reduce the in various areas of building energy efficiency and provide quantity of energy consumed and training in efficiency-related building sciences. increase the renewable energy generated Renewable energy would also be included. Specifies that in residential buildings. Under the these centers could also count as Centers for Energy and program, buildings would reduce energy Environmental Knowledge and Outreach in section 174. needs through energy efficiency gains and The program is authorized at $50 million per year in FY renewable technologies. Authorizes the 2010 and thereafter. program at $40 million for FY2010, $60 million for FY2011-FY2012, and $100 million for FY2013-FY2020. ACELA Sec. 243- Similar to ACES Sec. 173 Federal Energy Management Federal ACES Sec. 103 - Establishes a renewable electricity ACELA Sec. 271- Similar to ACES Sec. Renewable standard (RES) for the federal government. The RES 251(b)-(c). Purchase would begin in 2012, when it would require that 6% of Requirements the federal government’s electricity consumption be generated by renewable sources. It would rise gradually to a 20% standard by 2020 and remain at that level through 2049. The RES would not include an energy 14
  • 15. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act efficiency component. ACES Sec. 251(b)-(c) - Modifies the federal government’s existing renewable energy purchase requirements, including expanding existing targets to include thermal energy as well as electricity. Energy Savings ACES Sec. 251(a) - Amends competition requirements for ACELA Sec. 272- Similar to ACES Sec. Performance energy savings performance contracts (ESPC) in federal 251(a). Contracts buildings. The new process would require a federal ACELA Sec. 273- Allows federal agencies (ESPCs) agency that wishes to issue a task or delivery order to use other private financing of energy under an ESPC to notify all previously awarded saving measures in combination with contractors of its interest and to select two or more appropriated funds and/or private contractors for discussions. The agency may then select financing under ESPCs to carry out a one or more contractors for initial assessments and to contract. negotiate a task or delivery order. ACELA Sec. 274- Amends the definition of “energy savings” in ESPCs to include “installation of renewable energy systems.” Federal Use of ACES Sec. 152- Directs state public utility commissions to ACELA Sec. 278- Allows federal agencies State and Local consider requiring large electric utilities to make to participate in energy efficiency Incentives and interconnection and net metering available to federal programs that are implemented by state Rules government agencies, offices, or facilities. agencies or third parties as well as by utilities. Federal ACES Sec. 271 - Requires that each federal agency, in ACELA Sec. 277- Similar to ACES Sec. 271. Government collaboration with the Office of Management and Budget Information (OMB), create an implementation strategy for the and purchase and use of energy efficient information and Communication communication technologies and practices. Their efforts Technologies will be evaluated by performance goals established by OMB. Transportation Vehicle ACES Sec. 221- Requires EPA to create greenhouse gas APA Sec. 4141- Similar to ACES Sec. 221- Emission emission standards by 2010 for heavy-duty vehicles and Requires EPA to create greenhouse gas Standards engines, to take effect at least four years later, and by emission standards for heavy-duty 2012 for nonroad vehicles and engines. It also allows 15
  • 16. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act EPA to establish averaging, banking, and trading of vehicles. greenhouse gas emission credits within or between Also requires EPA to set motor vehicle categories of motor vehicles and engines, non-road standards for model years after 2016 vehicles and engines (including marine vessels), and that reflect the greatest emission aircraft and aircraft engines. reductions and fuel efficiency, while considering cost, energy, and safety. Greenhouse ACES Sec. 222 - Requires EPA, in consultation with the APA Sec. 1711-1712- Similar to ACES Sec. Gas Emissions Department of Transportation, to establish national 222- Requires EPA to establish national goals to reduce greenhouse gas emissions from the GHG reduction goals and local agencies transportation sector commensurate with ACES’ to establish local emission reduction emissions reduction goals, as well as standardized targets and strategies. models and methodologies for developing state and local The bill would provide allocations for targets. Also requires metropolitan planning various transportation efficiency organizations to establish local emissions reduction improvements, including GHG reduction targets and strategies. programs. See allocations below. SmartWay ACES Sec. 223- Authorizes the existing EPA SmartWay Transportation Transportation Efficiency Program to develop Efficiency measurement protocols to quantify and evaluate the Program energy consumption and greenhouse gas impacts from technologies and strategies in the mobile source sector, including freight carriers. Also authorizes a financing program to award funding to public and private entities for the adoption of low-greenhouse gas technologies and strategies in the mobile source sector. State Vehicle ACES Sec. 224- Directs DOE to revise the alternative fuel Fleets vehicle rules for state vehicle fleets so that they are consistent with any updates to the types of alternative fuel vehicles in federal fleet requirements. Plug-In Hybrid ACES Sec. 121- Directs state PUCs to consider requiring ACELA Sec. 152- Requires DOE to analyze APA Sec. 4111- Similar to ACES Sec. 122- Electric and each electric utility to develop a plan to support the use and assess the need for recharging 124-Requires EPA to establish a Clean Electric Vehicles of plug-in electric drive vehicles, and establishing facilities for plug-in electric drive vehicles Vehicle technology fund which would: protocols and standards for integrating plug-in electric and neighborhood electric vehicles; - provide financial assistance to drive vehicles into smart grid systems, including time-of- minimum technical standards for public automobile manufactures for the use pricing. recharging facilities; the technical and development of advanced infrastructure investments that electricity 16
  • 17. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act ACES Sec. 122- Establishes a DOE program to deploy and utilities will be required to make, etc. Also technology vehicles, including integrate plug-in electric vehicles into the electricity grid, directs DOE to establish a state and local plug-in hybrids (75% of the including assistance to states, tribes and local grant program for plug-in electric drive fund); governments. See Sec. 124, below, on funding. vehicles and recharging facilities. - support the deployment and ACES Sec. 123- Establishes a DOE program to provide ACELA Sec. 153- Requires DOE to submit a integration of these advanced financial assistance to automobile manufacturers to report to Congress containing vehicles (20% of the fund); and facilitate the manufacture of plug-in electric drive recommendations for establishing and - support the development of vehicles in the United States. See Sec. 124, below, on adopting consensus or industry standards a National Transportation Low- funding. for electric drive transportation. Emission Energy Plan (5% of the ACES Sec. 124- Establishes funding levels for the ACELA Sec. 154- Requires DOE to fund). programs described in Sections 122 and 123. From 2012 establish, as part of the Federal Energy The bill would provide 1 percent of to 2017, this section directs EPA to make 0.375% of Management Program, a pilot program to allowance proceeds from 2013 to 2020 emissions allowances of a given year available to provide grants for the purchase or lease and 0.5 percent in 2021 for the fund. See programs established under Section 122 and 0.375% to of pre-commercial plug-in electric drive allocations, below Section 123. vehicles in an amount not to exceed ACES Sec. 125- Would increase from $25 billion to $50 $10,000 per vehicle purchased or $1,500 billion the authorization for the Advanced Technology per year per vehicle leased, and for Vehicle Manufacturing Incentive Loans Program. recharging infrastructure at federal facilities in conjunction with the vehicles. ACELA Sec. 155- Requires DOE to conduct a study on end-of-useful life options for motor vehicle batteries, including batteries in electric drive vehicles. Transportation ACELA Sec. 151- Requires DOE to ask the Roadmap National Academy of Sciences to conduct a comprehensive analysis of energy use within the light-duty vehicle transportation sector and use that analysis to conduct a study of the technology options for alternative fuels and advanced technologies that could reduce petroleum consumption and greenhouse gas emissions. Lightweight ACELA Sec. 423- Increases the Materials RD&D authorization for the Lightweight 17
  • 18. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act Materials R&D programs to $100 million for FY2010-FY2013. Smart Grid and Transmission Peak Load ACES Sec. 144- Directs load-serving entities of greater Reduction than 250 MW peak load, or states on their behalf, to Goals determine peak demand reduction goals for 2012 and 2015 at the maximum realistically achievable reduction amounts. Also directs load-serving entities to prepare plans to meet their goals. It does not set out specific required reductions, but possible reduction strategies include efficiency programs, demand response, distributed generation, and stored energy. DOE, in consultation with EPA, the Federal Electric Reliability Corporation (FERC and the National Electric Reliability Corporation (NERC), is to develop measurement and verification rules. States may use emissions allowances in their SEED funds to pay any costs. Smart Grid ACES Sec. 142- Requires DOE and EPA to assess the Capabilities in potential for cost-effective integration of smart grid Appliances capabilities in all products that are reviewed for Energy Star labeling, and to analyze their optimal savings and cost-effectiveness. ACES Sec. 143 – Directs the Federal Trade Commission to consider indicating smart grid capability on appliance energy guide labels, including potential dollar savings when used in a smart grid-capable utility system. ACES Sec. 146- Makes smart grid-capable appliances eligible to receive rebates under the federal appliance rebate program that was created in Energy Policy Act of 2005 and is operated through state offices. Smart Grid ACES Sec. 145- Expands the authorization of the Energy Public Efficiency Public Information program, originally Information authorized in the Energy Policy Act of 2005, to include information about smart grid. Extends the authorization 18
  • 19. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act until 2020. Transmission ACES Sec. 151- Encourages regional electric grid ACELA Sec. 121- Directs the FERC to Planning planning, taking into account all demand- and supply- coordinate regional transmission planning side options including energy efficiency, distributed and, in consultation with interested generation, smart grid, demand response, storage, parties, to develop national electricity grid voltage regulation, advanced conductor technologies, planning principles. FERC could approve underground transmission, and conventional projects in certain high-priority instances transmission capacity and corridors. Planning is to be if states failed to do so. coordinated by FERC. ACES Sec. 153- Makes certain high-efficiency transmission equipment eligible for a federal loan guarantee program, and for new DOE grants. Industrial Energy Efficiency Industrial Plant ACES Sec. 241- Requires DOE to continue existing work Energy with the American National Standards Institute (ANSI) Efficiency and the International Standards Organization to develop Standards and industrial plant efficiency certification technical Targets standards. Would also require DOE’s Industrial Technologies Program to support the voluntary implementation of such standards by manufacturing firms. Industrial RD&D ACES Sec. 244- Requires DOE to assess the electric motor ACELA Sec. 202- Directs DOE to establish APA Sec. 4161- Requires the Department and Technical market in the United States, the opportunities for collaborative research and development of Commerce to establish a National Assistance energy-efficiency improvements by market segment, and partnerships between the Industrial Industrial Innovation Institute, which motor purchase and maintenance practices. Based on Technologies Program and other DOE would research and develop the assessment, directs DOE to establish a national programs. technologies that improve the efficiency motor end-user education program. ACELA Sec. 203- Directs DOE to conduct and competitiveness of domestic ACES Sec. 275 – Requires DOE to carry out a national an assessment of cost-effective energy manufacturers and reduce energy program to educate leaders in the industrial and efficiency technologies that are not widely consumption and greenhouse gas commercial buildings sectors and in government on the implemented in the United States for emissions large energy-saving potential of greater use of application to energy-intensive industrial The bill would provide 1 percent of mechanical insulation. It would provide information sectors. emissions allowances in the years 2013 through education and training sessions, the internet ACELA Sec. 204- Renames the Energy- to 2020 and 0.5 percent of allowances in 19
  • 20. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act and advertising. Authorizes $3.5 million per year from Intensive Industries Program to be the 2021 for the National Industrial 2010 to 2014 to carry out this section. “Future of Industry Program.” Creates a Innovation Institute. See allocations, “road map process” to assess energy and below. greenhouse gas emissions in individual See also ACES Sec. 174 under Research and industrial processes, establish targets of Development. opportunity for “efficiency, sustainability, and resilience” improvement, and develop public-private actionable plans. See additional provisions in section 204, below. ACELA Sec. 205- Authorizes a sustainable manufacturing initiative under DOE’s Industrial Technologies Program to provide onsite technical assistance to identify ways in which a manufacturer can improve its energy efficiency and achieve other environmental goals. ACELA Sec. 206- Directs DOE to provide one-time competitive grants of up to $500,000 for state-industry partnerships that improve efficiency and cost competitiveness while reducing pollution and industrial waste. ACELA Sec. 207- Directs DOE to arrange with NAS for a study on the development of advanced manufacturing capabilities for various energy technologies. ACELA Sec. 231- Same as ACES Sec. 244. Grants, Awards, ACES Sec. 242- Directs DOE to provide awards to electric ACELA Sec. 201- Establishes a DOE APA Sec. 781(b)(2) – Similar to ACES 242 and Loan and thermal energy generation facilities for the program to provide grants of up to $100 - Directs EPA to provide awards for Programs innovative recovery of waste heat for electricity million to lenders to support revolving energy efficiency retrofits and production or thermal use. Awards can comprise up to loans for manufacturers to reduce modernization in manufacturing plants, 25% of the value of the energy projected to be recovered systems energy intensity and increase including: or generated through the first five years of program competitiveness. - grants to promote waste heat activity. recovery and improve efficiency 20
  • 21. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act ACES Sec. 245- Establishes a DOE program to provide ACELA Sec. 228- Same as ACES Sec. 245. in energy-intensive industries rebates for the purchase and installation of new electric (96.77% of funds) motors that meet certain efficiency criteria. - grants to support manufacturing extension partnership activities (3.23% of funds) APA provides 0.5% of emissions allowances in the years 2013 through 2015 for these activities. See allocations, below. Research and Development Clean Energy ACES Sec. 171- Directs DOE to establish eight Energy ACELA Sec. 204 - Establishes 10 Centers of APA Sec. 1801- Directs DOE to provide Centers Innovation Hubs. The Hubs are to be housed in Excellence at high-performing Industrial competitive grants to a number of non- universities and non-governmental organizations, and Assessment Centers (IACs) that will government research entities (including are to support the commercial application of clean support newer IAC programs in their universities, research foundations, energy technology through research and development in surrounding regions. IACs engage companies and trade organizations) to a specific focus area, which may include: solar electricity, students and faculty at institutions of promote the development and fuels from solar energy, batteries and energy storage, higher education to assess the efficiency deployment of clean energy technology, electricity grid systems and device, energy efficient of small- and medium-size manufacturers. in accordance with the goals of ARPA-E. building systems and design, advanced materials, Also provides funding to establish additional IACs and support internships. The bill directs 2 percent of emissions modeling and simulation and other clean energy allowances in the years 2013 to 2021 for See additional provisions in section 204, technology areas as designated by DOE. 0.45% of all these activities. See allocations, below. above. carbon allowances are allocated for these hubs. ACES Sec. 174- Establishes ten regional “Centers for Energy and Environmental Knowledge and Outreach” within higher education institutions to coordinate and advise industrial assessment centers, clean energy application centers, and building assessment centers. The centers are to incorporate regionally-specific issues and approaches in their research, and are also to run internship programs. The centers are authorized at $10 million a year. Advanced ACES Sec. 172- Directs the Advanced Research Projects ACELA Sec. 421- Authorizes the Advanced See section 1801,above. Research Agency – Energy (ARPA-E) to distribute its 1.05% of Research Projects Agency – Energy (ARPA- Projects Agency carbon allowances on a competitive basis to appropriate E) to initiate and execute grants, 21
  • 22. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act – Energy (ARPA- research and development entities to fund early stage contracts, cooperative agreements, and E) energy research with possible technology applications, other transactions separate from DOE for development of manufacturing processes for the development of technologies that technologies, and demonstration of commercial result in reductions of imports of energy application of technologies, among other activities. from foreign sources, reductions of energy-related emissions, including greenhouse gas emissions from all sources, and improvement in the energy efficiency of all economic sectors. DOE Programs ACELA Sec. 401- Authorizes appropriations to DOE for research, development, demonstration and commercial application activities in the areas of energy efficiency and conservation, distributed energy, electric energy system activities, and renewable energy. Financing Clean Energy ACES Sec. 182–191- Establishes the Clean Energy ACELA Sec. 101-109- Similar to ACES Sec. Deployment Deployment Administration (CEDA), an independent 182-191, but establishes CEDA as part of Administration government-owned corporation, to finance clean energy DOE, transfers the DOE loan guarantee technologies. Directs CEDA to manage a Clean Energy program to CEDA, and funds CEDA with a Investment Fund. The purpose of CEDA is, through $10 billion transfer from the U.S. partnership with the private capital market, to promote Treasury. access to affordable financing to: - clean energy technologies; - advanced or enabling energy infrastructure technologies; - energy efficiency technologies in residential, commercial, and industrial applications, including end-use efficiency in buildings; and - manufacturing technologies for any of the eligible technologies or applications. The Clean Energy Investment Fund, housed in the 22
  • 23. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act Treasury, would be funded from $7.5 billion in Green Bonds to be issued by the Treasury. Grants to Clean ACES Sec. 196- Would authorize DOE to provide grants to Technology nonprofit organizations to conduct business Businesses competitions that provide incentives, training and mentorship to entrepreneurs and early-stage start-up companies to meet economic, environmental and energy security goals. ACES Sec. 264- Establishes a DOE program to provide grants to community development organizations to provide financing to businesses and projects that improve energy efficiency; identify and develop alternative, renewable, and distributed energy supplies; promote job and business opportunities for low-income residents; and increase energy conservation in low- income rural and urban communities. This program is authorized at $50 million per year for five years. National Energy Strategy ACES Sec. 272- Directs DOE, EPA and other appropriate ACELA Sec. 275- Same as ACES Sec. 272 . federal agencies to develop a strategic plan to increase ACELA Sec. 603- Updates the current the energy productivity (measured in GDP per unit requirement in the Department of Energy energy input) of the United States by 2.5% each year Organization Act for a biennial President from 2012 to 2030. The plan must identify regulatory, of the United States’ National Energy funding and policy priorities and establish data collection Policy Plan, with input from NAS; it is now methodologies to establish baseline energy use and to be issued by February 1, 2010 and savings. every four years thereafter. See also ACES Sec. 222 under Transportation 23
  • 24. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act Assistance to State and Local Governments Funding ACES Sec. 131-132 – Establishes State Energy and ACELA Sec. 255- Authorizes $250 million APA Sec. 1602- Directs USDA to establish Environment Development (SEED) Accounts to manage per year for the State Energy Program for a Rural Energy Savings program which emissions allowances dedicated to the states for energy FY2011-FY2015. would provide loans and grants to rural efficiency and renewable energy. The SEED Accounts are ACELA Sec. 276- Same as ACES Sec. 261 utilities to finance customer energy to be managed by State Energy Offices or related state efficiency improvements. agencies. SEED Accounts receive a decreasing The bill directs 0.5 percent of allowances percentage of emissions allowances over time, starting in the years 2013 to 2015 to the at 9.5% of allowances from 2012 to 2015 and decreasing program. See allocations, below. gradually to 4.5 % of allowances from 2026 to 2050. APA Sec. 1603- Provides formula grants ACES Sec. 262- Amends the Energy Efficiency and to states and Indian tribes for a variety of Conservation Block Grant Program to remove certain energy efficiency and renewable energy limits on the eligible use of funds by local governments projects, including: building energy and Indian tribes. codes, energy-efficient manufactured homes, building energy performance ACES Sec. 263- Amends the Energy Efficiency and labels, low-income community energy Conservation Block Grant Program to allow adjacent, efficiency, energy efficiency building contiguous, and geographically small communities to be retrofits, renewable energy deployment, counted together to meet the size threshold for direct end-use efficiency programs for utility DOE grants. customers, smart grid development, and ACES Sec. 273 – Requires DOE to assemble a team to surface transportation projects. address the energy needs of U.S. affiliated islands such The bill directs 0.5 to 2.0 percent of as Puerto Rico, to improve the energy efficiency of their allowances in the years 2013 to 2021 to power generation, transmission and distribution, and the program. See allocations, below. increase end-use energy efficiency, among other strategies. Miscellaneous Evaluation, ACELA Sec. 282- Requires DOE to Measurement, promulgate uniform rules to document and Verification energy savings and avoided greenhouse gas emissions of energy efficiency programs and projects that: - receive funding from Federal, state, or local governments or 24
  • 25. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act public utilities; - require specific levels of energy reductions; and - are eligible for allowances or allowance proceeds based on energy savings and greenhouse gas emissions reductions under climate change regulations Energy and ACES Sec. 215– Authorizes the existing EPA WaterSense ACELA Sec. 147 – Directs DOE to establish Water program to identify and promote water efficient a competitive grant program to provide Efficiency products, buildings, landscapes and services in order to grants to states, local governments and reduce water use; reduce the strain on water, Indian tribes for the development of wastewater and storm water infrastructure; conserve technologies that reduce the energy used to pump, heat, transport and treat water; consumption of energy supplies and and preserve water resources for future generations. promote water conservation activities. Directs the program to be modeled after the EPA and Authorizes $100 million per year for DOE Energy Star program. FY2010-FY2015 for carrying out this section. ACELA Sec. 148 – Directs DOE to establish a program to provide on-site technical assistance to rural water utilities to improve energy efficiency identify and develop alternative and renewable energy supplies, and conserve water. Authorizes $7 million per year for FY2010-FY2015. ACELA Sec. 141- Directs DOE to arrange with NAS to conduct a study assessing water use associated with developing fuels in the transportation sector, and the water consumed in different types of electricity generation. ACELA Sec. 142- Directs DOE to conduct a study to identify the best alternative technologies to maximize efficiencies in water and energy use in producing 25
  • 26. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act electricity, and to develop other strategies. ACELA Sec. 143 – Directs the Department of the Interior to evaluate the energy used in storing and delivering water from reclamation projects and to reduce this energy use through conservation, improved operation, and renewable energy integration. ACELA Sec. 145 – Requires DOE’s Energy Information Administration to analyze the energy consumption associated with the acquisition, treatment and delivery of water for a variety of uses. ACELA Sec. 146 – Directs DOE to develop a roadmap to define future efforts necessary to address water-related challenges to sustainable energy. ACELA Sec. 149 – Directs DOE to study the interrelated nature of water and energy use and identify opportunities to reduce energy consumption and associated costs through water conservation and water management studies. Green Jobs and See ACES Sec. 173 under Buildings and ACES Sec. 174 ACELA Sec. 439- Authorizes DOE, working APA Sec. 4101- Same as ACES Sec. 421. Workforce under Research and Development with the Department of Labor, to issue APA Sec. 4102- Same as ACES Sec. 423. Training ACES Sec. 421- directs DOE to award competitive grants grants to community colleges to provide APA Sec. 4103- Same as ACES Sec. 424, to develop, implement, and disseminate programs of workforce training and education in except it adds a definition section. study that are focused on emerging careers and jobs in sustainable energy industries and renewable and clean energy, energy efficiency, climate practices, including for energy efficiency change mitigation, and climate change adaptation. construction, retrofitting and design; water and energy conservation; and ACES Sec. 422- Increases funding for the Energy Worker recycling and waste reduction. Authorizes Training Program to $150 million $100 million per year for FY2010 –FY2015 ACES Sec. 423- Directs the Department of Labor to to carry out this section. 26
  • 27. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act develop an internet-based information clearinghouse to Also see ACELA Sec. 243 under Buildings aid technical education and job training programs in the and ACELA Sec. 204 under Industrial. renewable energy sectors. The clearinghouse would emphasize programs that cater to high-demand middle- skill trades and would contain separate information for each renewable energy sector, including energy efficiency. The Secretary of Labor is to solicit expertise from organizations involved in the clean energy sector, including businesses, organizations, career and technical schools, and institutes of higher education. Utility ACES Sec. 198- Establishes an Office of Consumer APA Sec. 3301- Same as ACES Sec. 198. Consumer Advocacy and a Consumer Advocacy Advisory Protection and Committee within the Federal Energy Regulatory Advocacy Commission (FERC) to represent energy consumers in matters concerning the rates or service of public electric and natural gas utilities under FERC jurisdiction. ACES Sec. 291- Provides protection for homes not connected to or able to receive electricity service from a retail electric power provider from being denied homeowners insurance Tree-Planting ACES Sec. 205- Authorizes DOE to provide financial and Programs technical assistance for tree planting programs that are operated by retail electric power utilities in partnership with non-profit organizations. To be eligible, the program must optimize the electricity-consumption reduction benefit of the trees by planting them in strategic locations around a residence or small office. ACES Sec. 295- Requires HUD to establish and provide incentives for developers of housing receiving HUD assistance to enter into agreements and partnerships with tree-planting organizations, nurseries, and landscapers. Energy Markets ACELA Sec. 502-503- Establishes a “Working Group on Energy Markets” to 27
  • 28. Energy Efficiency Provisions ACES (H.R. 2454) ACELA (S. 1462) American Power Act investigate the effects of increased financial investment in energy commodities on energy prices and energy security. Empowers the Working Group to recommend to Congress and the President regulations to prevent excessive speculation in energy commodity trading markets, and directs the Working Group to prepare a report. Electricity Price ACELA Sec. 504- Expands DOE’s existing Information Tariff Analysis Project, an online database and web interface on rate structure information and electricity prices to help retail customers compare tariff options. 28
  • 29. Climate Provisions of ACES and the American Power Act Sections numbers refer to the amended Clean Air Act section unless otherwise noted ACES (H.R. 2454) American Power Act Program Administration Cap-and-Trade Program administered by EPA. ACES preempts Cap-and-Trade Program administered by the EPA. [701-721] APA EPA from regulating global warming pollutants through other preempts EPA from regulating global warming pollutants in certain provisions outside the cap-and-trade program. [831-835] provisions of the Clean Air Act. [APA sec. 2301-2307] Carbon Market Oversight delegated to the Federal Energy Regulatory Commission and the Commodity Futures Trading Carbon Market Oversight delegated to the Commodity Futures Commission. Trading Commission alone [APA sec. 2402] Scope Cap covers 85 percent of US GHG emissions. [711 & 700(13)] Cap coverage: Same as ACES. [711 &700(12)] Ramp up: Electric generating units and fuel refiners and Ramp Up: Electric Local Distribution Companies in 2013, major importers covered in 2012, major industrial emitters in 2014, industrial emitters in 2013, natural gas local distribution companies natural gas local distribution companies in 2016. [722(c)] in 2016. [722(c)] Additional emissions reductions outside the cap include HFCs, international deforestation, and domestic and international Additional emissions reductions: Similar to ACES, with an added offsets. [704 & 751-756] program for perfluorocarbons. [704, 714, APA sec 2201, & 2211- 2214 ] Reduction Targets Cap Reduction targets for capped sources (based on 2005 Cap Reduction targets for capped sources. Same as ACES after emissions): 17% by 2020, 42% by 2030, 83% by 2050 [703] 2016: 4.75% by 2013, 17% by 2020, 42% by 2030, and 83% by 2050. Economy-Wide Reduction Goals (based on 2005 emissions): [703] 20% by 2020, 42% by 2030, 83% by 2050 [702] Economy-Wide Reduction Goals: Same as ACES after 2016: 4.75% by 2013, 17% by 2020, 42% by 2030, and 83% by 2050. [702] Price Stability and Cost General: Trading, banking and limited borrowing of emissions General: Similar to ACES [724 & 725]. Transportation fuels would Control allowances. [724&725] not participate in the carbon market. [729] Offset: 2 billion ton limit, split evenly between domestic and Offsets: 2 billion tons limit, split ¾ domestic sources and ¼ foreign foreign sources (EPA adjustment allowed to increase the sources (EPA adjustment allowed to increase the quantity of quantity of international offsets to 1.5 billion tons). international offsets to 1 billion tons). International offsets not International offsets discounted 20% after 2017. [722(d)] discounted [722(d)] Offset Oversight Delegated to USDA for domestic agriculture Offset Oversight: Delegated to EPA [731-753] and forestry projects and to EPA for all other offset types. [731- Cost Containment Reserve: Similar to ACES strategic reserve. Four 743] billion allowances set aside for purchase in the event of high Strategic Reserve: A pool of emissions allowances is set aside allowance prices. [726] for purchase in the event of significant price volatility. Up Reserve Filling schedule: The reserve would be filled by an to 15% of the total emission allowances each year could increasing portion of the total emissions allowances: 1.5% in 2013, be auctioned from the strategic reserve. [726] increasing to 2.5% in 2022, and 5% in 2030. Also supplemented by
  • 30. Climate Provisions of ACES and the American Power Act Sections numbers refer to the amended Clean Air Act section unless otherwise noted ACES (H.R. 2454) American Power Act Reserve filling schedule: 1% of 2012-2019 allowances, 2% 2020- unsold allowances. [726(c)] 2029 allowances. 3% annually thereafter. Also supplemented Trigger Price: $25 in 2013, rising at 5% plus the rate of inflation by unsold allowances and international offsets for reduced each year to $77 in 2030 and $300 in 2050 (in 2010 deforestation purchased through reserve proceeds. dollars). [726(b)] Trigger Price: Allowances could be sold from the reserve if Price Floor: $12 in 2013, rising to $20 in 2030 and $37 in 2050. allowance auction prices rose above as set trigger price: $28 in [Section 790(d)] 2012, rising at 5% per year through 2014, and then 1.6 times rolling average for the duration of the bill. [726(c)] Price Floor: Allowance price cannot drop below $10 in 2012, rising 5% per year plus inflation. [Section 791(d)] Overview Allocations to a variety of sources, and most allocations decline Similar to ACES, with a greater portion allocated for consumer relief after 2030. Allowance values are estimated from bill text [782] and deficit reduction. Allowance values are estimated from bill text and EPA estimates of total allowance revenue. [781] and EPA estimates of total allowance revenue. Electricity Total Allowance Value: $390.4 billion Total Allowance Value: $396.3 billion (13.62% of allowance Consumers (13.0% of allowance revenue 2012-2050) [782(a)] revenue 2013-2050)[781(a)(1)] (using Large Local Recipient: Electric local distribution companies (LDCs) for the Recipient: Same as ACES Distribution benefit of their ratepayers. Distribution to LDCs: 75% based on historic emissions, 25% based Allowance Allocations Companies) Distribution to LDCs: 50% by historic electricity use (adjusted on historic electricity use, adjusted by the number of consumers by number of customers), 50% by historic emissions. No LDC every three years after 2015. may receive more allowances than necessary to offset Allowance Uses: Same as ACES [782] increased electricity costs. Allowance Uses: “Exclusively for the benefit of retail ratepayers.” Benefits are to be distributed among ratepayer classes (residential, industrial, etc) based on total deliveries and divided at a fixed rate among ratepayers in each class to the maximum extent practicable (i.e., not solely based on ratepayer energy consumption). For industrial and residential ratepayers, LDCs may pass on allowance values based on electricity consumption if a fixed rate would result in increased electricity costs. [783] 30
  • 31. Climate Provisions of ACES and the American Power Act Sections numbers refer to the amended Clean Air Act section unless otherwise noted ACES (H.R. 2454) American Power Act Electricity Total Allowance Value: $5.4 billion Consumers (using (0.2% of allowance revenue 2012-2050) [782(a)(2)] Small Electric Recipient: Small electric local distribution companies (LDCs) for Distribution the benefit of their ratepayers. Companies) Distribution to LDCs: By historic emissions. Allowance Uses: Exclusively to achieve electricity savings, deploy renewable electricity technologies, or provide low- income assistance programs [783(b)] Natural Gas Total Allowance Value: $79.2 billion Total Allowance Value: $79.2 billion (2.72% of allowance revenue Consumers (2.6% of allowance revenue 2012-2050) [782(b)] 2013-2050) [781(a)(2)] Recipient: Natural gas distribution companies for the benefit of Recipient: Same as ACES their ratepayers. Distribution to companies: Same as ACES (the adjustment would Distribution to companies: Historic natural gas deliveries occur every three years after 2019). (adjusted by number of customers). Allowance Uses: “Exclusively for the benefit of retail ratepayers,” Allowance Uses: “Exclusively for the benefit of retail with at least 20% of the allowances to be used for energy efficiency ratepayers,” with at least one-third of allowances used for programs for natural gas consumers. The rebates are to be energy efficiency programs. Benefits are not to be based solely distributed at a fixed rate to the maximum extent practicable. on ratepayer energy consumption to the maximum extent [783] practicable. [784] Home Heating Oil Total Allowance Value: $16.7 billion Total Allowance Value: $16.2 billion (0.6% of allowance revenue and Propane (0.6% of allowance revenue 2012-2050) [782(c)] 2013-2050) [781(a)(3)] Consumers Recipient: States for the benefit of residential and commercial Recipient: Same as ACES, except APA excludes kerosene home heating oil, propane, and kerosene consumers. consumers. Distribution to states: Carbon content of historic home heating Distribution to states: Same as ACES, based upon on consumption oil, propane, and kerosene sales. in the preceding year. Allowance Uses: At least 50% for energy efficiency programs, Allowance Uses: Same as ACES. [784] the remainder for direct financial assistance programs for consumers. [785] 31
  • 32. Climate Provisions of ACES and the American Power Act Sections numbers refer to the amended Clean Air Act section unless otherwise noted ACES (H.R. 2454) American Power Act State Investment Program: State Energy and Environmental Development Programs: Rural Energy Savings Program and investment in state in Energy (SEED) Funds [131 & 132] and local energy efficiency and renewable energy [APA sec. 1602 & Efficiency and Total Allowance Value: $148.6 billion 1603] Renewable Energy (4.9% of allowance revenue 2012-2050) [782(g)] Total Allowance Value: $9.663 billion (0.33% of allowances 2012- Recipient: States to redistribute 2050) [781(c)(5)] Distribution to States: Based on a formula of 33% to all states, Recipient: States and rural electric coops to redistribute 33% by population, and 33% energy consumption. Distribution to States: Same formula as ACES Allowance Uses: Allowance Uses: • 20% to states for specific energy efficiency programs: • Rural Electric Utilities: Low-interest consumer loans to support buildings codes, manufactured homes, building investment in energy efficiency performance labeling, low income community energy • States: building energy codes, energy-efficient manufactured efficiency programs and retrofit programs (at least 5.5% of homes, building energy performance labels, low-income SEED funds). community energy efficiency, energy efficiency building • 12.5% to local governments for specific energy efficiency retrofits, renewable energy deployment, end-use efficiency and renewable energy programs. programs for utility customers, smart grid development, and • 20% to states for specific renewable energy financing surface transportation projects. programs. [APA sec. 1602 & 1603] • 37.5+% To states for energy efficiency and renewable energy programs described above, energy efficiency programs for end-use energy consumers, Smart Grid for public building. • Up to 10% to states for transportation programs [131 & 132 of ACES] Building Codes Total Allowance Value: $14.8 billion (0.5% of allowance revenue 2012-2050) [782(g)(2)] Recipient: States for building codes adoption and implementa- tion Distribution to states: 20% equal for each state and territory, 40% based on building energy use in each state, and 40% based on building activity in each state Allowance Uses: For building code adoption and implementation. [201 of ACES] 32
  • 33. Climate Provisions of ACES and the American Power Act Sections numbers refer to the amended Clean Air Act section unless otherwise noted ACES (H.R. 2454) American Power Act Transportation No allowance value allocated, though 10% of SEED funds may Total Allowance Value: $114.2 billion (3.93% of allowance revenue GHG Reduction be used for programs to reduce transportation GHG emissions. 2012-2050) [781(f)(3] [132 of ACES] Recipient: DOT and Highway Trust Fund Allowance Distribution and Use: 1/3 to DOT to distribute as grants to state and local governments or transit agencies for improvements to the national surface transportation system, 1/3 to DOT for grants to states and metropolitan planning organizations to develop and implement transportation GHG reduction plans, and 1/3 to the Highway Trust Fund to promote the safety, effectiveness, and efficiency of transportation in the United States. [APA sec. 1711, 1712] Clean Vehicle Total Allowance Value: $15.6 billion Total Allowance Value: $5.35 billion (0.18% of allowance revenue Technology (0.5% of allowance revenue 2012-2050) [782(i)] 2012-2050) [781(c)(2)] Recipient: To DOE to provide grants to states, tribes, local Recipient: EPA governments and automobile manufacturers to support vehicle Allowance Distribution and Use: 75% to vehicle manufacturers electrification. and component suppliers to reequip or expand existing domestic Allowance Distribution and Use: Half to DOE for competitive manufacturing facilities to produce qualifying advanced technology grants to states, tribes and local governments to support local vehicles, 20% to be used for the deployment and integration of electric vehicle infrastructure and deployment [122 of ACES]; these advanced vehicles, and 5% for the development of the half to automobile manufacturers to facilitate the manufacture National Transportation Low-Emission Energy Plan. [APA section of plug-in electric drive vehicles [123 of ACES]. 4111] Research and Total Allowance Value: ARPA-E: $44.3 billion Total Allowance Value: $11.4 billion (0.39% of allowance revenue Development for (1.02% of allowance revenue 2012-2050); 2012-2050) [781(c)(4)] Clean Energy Hubs: $13.0 billion (0.44% of allowance revenue 2012-2050) Recipient: Various research entities (including universities, research [782(h)] foundations, companies and trade organizations) Recipient: DOE for two research and development programs: Allowance Uses: To promote the development and deployment of Advanced Research Projects Agency – Energy (ARPA-E) and clean energy technology. [APA sec. 1801] new Clean Energy Innovation Hubs. Allowance Uses: ARPA-E: to research, develop and demonstrate new energy efficiency manufacturing technologies. Hubs: to promote commercial application of clean, indigenous alternatives to fossil fuels. [171 & 172 of ACES] 33
  • 34. Climate Provisions of ACES and the American Power Act Sections numbers refer to the amended Clean Air Act section unless otherwise noted ACES (H.R. 2454) American Power Act Low Carbon Total Allowance Value: $5.34 billion (0.18% of allowance revenue Industrial 2012-2050) [781(c)(3)] Technologies R&D Recipient: Department of Commerce to fund the National Industrial Innovation Institute Allowance Uses: To carry out research and development projects of technology that improves the efficiency and competitiveness of domestic manufacturers and reduces energy consumption and greenhouse gas emissions. [APA sec. 4143] Industrial Total Allowance Value: $781 million (0.03% of allowance revenue Facilities 2012-2050) [781(b)] Recipient: Energy- and trade-intensive industrial sectors Allowance Uses: To mitigate the cost of the carbon cap. Allowances will be allocated based on industrial output, rather than energy use, encouraging energy efficiency in production. The Alliance to Save Energy is a coalition of prominent business, government, environmental and consumer leaders who promote the efficient use of energy worldwide to benefit consumers, the environment, the economy, and national security. For more information please contact Alliance policy staff at (202)857-0666 or info@ase.org Updated June 30, 2010 34

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