Ase climatebill side-by-side_07.10

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

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

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

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
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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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

– 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

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

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

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

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

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

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

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

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

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

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

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

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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