Listed below is written by Representative Joe Courtney of Connecticut a letter he sends to the people in his district of Connecticut: He has asked us to vote yes or no if we believe this energy bill is necessary. How would you have voted on this bill just by the way it is written? Are we being fooled? Please read the following:
American Clean Energy and Security Act
In Connecticut, oil prices skyrocket before the summer travel season, and home fuel prices rise rapidly each winter. The unpredictability and volatility of oil prices hurts working families, local businesses, fishermen, and farmers. Enough is enough – it is time for our nation to take action to increase our clean energy usage and to reduce our dependence on foreign oil.
What is the American Clean Energy and Security Act (ACES)?
On June 26, 2009, the House of Representatives passed the American Clean Energy and Security Act (ACES) , legislation that will revitalize our economy by creating new green jobs, increase our national security by reducing our dependence on foreign oil, and preserve our planet by reducing the pollution that causes global warming.
If passed by the Senate, ACES will:
Enact strong renewable energy and energy efficiency standards. ACES requires utilities to meet a combined 20% renewable (15%) and efficiency (5%) rate by 2020, and requires states to meet a 15% renewable rate by 2020. It requires new building efficiency standards that will ensure residential buildings are 30% more efficient by 2014 and commercial buildings are 50% more efficient by 2015, as well as increased efficiency standards for lights, appliances, and commercial furnaces.
Tackle the threat of global climate change. ACES establishes a market-based cap and trade system to reduce carbon emissions 17% by 2020, and 80% by 2050. The caps are based on 2005 emissions as the benchmark, and would begin in 2012. Credits, or allowances, will be sold in a market based approach to emitters of greenhouse gases, and will give them a choice between purchasing the credits that will let them continue to pollute – or invest in the clean energy technologies that will reduce emissions, create jobs and reduce our dependence on foreign oil. This system is modeled off the proven and effective Clean Air Act of 1990 that addressed acid rain, which allowed the market to set the price of allowances for acid. In addition to purchasing allowances, polluters will be able to offset their emission cap if they can prove they are reducing emissions of uncapped sources at a lower cost.
Invest in consumer relief and energy technology. The Congressional Budget Office (CBO) estimates that ACES will raise $846 billion over ten years from the sale of carbon credits. Over half of the revenues (55%) will be invested towards relief to consumers – lowering the cost to power, heat and cool their homes and businesses. 19% would be used to help energy intensive industries, like steel, iron and paper, transition to cleaner operations and protect American jobs, and 13% would be invested in clean energy technology development and deployment.
Some additional facts about ACES:
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Invests $20 billion in electric and advanced technology vehicles.
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Increases basic scientific R&D by $20 billion by 2025.
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Establishes the Clean Energy Development Authority (CEDA), a “green bank”, which will be a self-sustaining entity within the DOE. CEDA will have the ability to issue direct loans, letters of credit, and loan guarantees to deploy clean energy technologies.
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Provides $20 million in grants for start up companies that will contribute to a renewable energy standard.
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Allows the DOT and DOE issue grants worth up to 30% of costs to companies to reequip, expand, or establish a manufacturing facility for “advanced technology vehicles."
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Increases the amount of loans for advanced technology vehicle research from $25 billion to $50 billion.
Why is this bill necessary?
We must end our dependence on foreign oil. Our nation today pays $400 billion a year for foreign oil. Doing nothing will only increase our energy costs $420 billion within the next five years at a cost of nearly $3,500 every year for per family. Instead, we must end this dangerous dependence and transition to clean, renewable and efficient energy technologies. When combined with other efforts to improve energy efficiency, ACES is estimated to cut the use of oil by 250 million barrels a year by 2030 – meaning that we keep more of our money here at home in America’s economy.
Supporting new energy technology is key to our economic future. Our nation lags behind many others in the global competition for energy jobs, technology and opportunities. China, for example, is spending six times as much on clean energy than we are – we must position our nation to compete in this global opportunity. By transitioning off of foreign oil and spurring innovation through a domestic “green” energy economy, we can create new jobs that will help our nation lead the way in innovation. It is estimated that ACES, combined with the energy investment in the economic recovery plan already enacted, will create 1.7 million clean energy jobs throughout the nation.
The time is now. The global renewable energy market is predicted to grow 60 percent to $400 billion by 2012, and clean energy jobs grew 2 ½ times the national average from 1998-2007 without extensive investments. The time is now to take advantage of this opportunity to secure our nation, grow jobs and steer our economy towards an energy efficient future.
Frequently Asked Questions
Does this bill raise my taxes? No. The bill contains no tax increases .
But won’t this bill cost me and my family $3,000 in increased utility rates? No. Opponents of the bill often cite a 2007 MIT study to show that ACES would cost households $3,900 a year – even though the authors of the study continue to call the misrepresentation of their work “just wrong. ”
The nonpartisan Congressional Budget Office (CBO) showed the net economy-wide cost of the bill would be modest, “about $175 per household” in 2020. The Environmental Protection Agency (EPA) found also that the bill would “substantially accelerate the deployment of clean energy technology that will create new jobs,” for the household cost of “$80 to $111 dollars per year,” just 22 to 30 cents per day or $7 to $10 per month.
The CBO and EPA analyses also do not take into account the long-range savings from improved energy efficiency and the benefit of addressing the challenge of global climate change, which may help offset the cost of any rate increases.
In addition, Connecticut already generates nearly half of its electricity from nuclear energy, giving the state an advantage over other states that rely on coal, oil, and gas-based electricity production who will have to purchase allowances – meaning that any potential long-term rate increases will likely be lower for Connecticut than other states and regions.
Does this bill help seniors with their energy bills? Yes. 15 percent of carbon credit revenues are set aside for a low-income energy rebate and a tax credit for households receiving benefits through the Supplemental Nutrition Assistance Program – SNAP (previously food stamp program) or through the Medicare Part D low-income subsidy, and for other low income households.
Does this bill require me to perform an energy audit on my home, or upgrade it, before selling it? No. As passed by the House, the bill does not require current or future homeowners to conduct energy audits, or make energy efficiency improvements on their existing homes.
The bill establishes a model labeling program for homes, Sec. 204, similar to the “Energy Star” program currently be used for appliances. Under the bill, the EPA will develop a program to compare the efficiency of homes and apartment buildings that can inform consumers and reward homeowners, builders, and landlords who utilize energy efficiency practices. The program would begin within three years, and any implementation and use of the final program will be entirely dependent on the decision of each state government on whether to participate.
It is important to note that this bill does not create energy audit requirement for homeowners when they sell their home , exempts existing buildings from any federal energy labeling guidelines, leaves the decision entirely to state governments whether to pass a law to require energy efficiency labels on new homes – but also expressly prohibits states from requiring a label as part of a home sale . Sec. 204(m), specifically, says that the labeling program “shall apply only to construction beginning after the date of enactment of this Act .”
The National Association of Realtors, who worked with Congress to shape the bill, says that this bill “does not create a federal energy audit requirement for real property,” “exempts existing homes and building from any federal guidelines for new construction energy efficiency information labels,” and “prohibits the implementation of any labeling during a sales transaction.” Click here to read a letter submitted by the National Association Realtors .
The only way this legislation will affect you is that it will let you know how much energy a new home saves or produces when you are purchasing a new home – just like when you buy a new refrigerator that has a sticker on it telling you how much energy it uses or how it is rated.
But doesn’t this bill force new national building code on state and local governments and existing homes? No. Section 201 of the bill establishes a new section of law called Section 304, “Greater Energy Efficiency in Building Codes,” which sets out new national energy efficiency standards for building codes that apply to future, new buildings. The bill sets a target of establishing a building code that achieves a 30 percent reduction for new buildings on the date that this bill is signed into law, a 50 percent reduction in new residential buildings by 2014 and for commercial buildings in 2015, and for a further reduction of 5 percent for new buildings every three years after 2017 and 2018 for residential and commercial buildings, respectively.
The new codes would be based on those developed by two professional, independent organizations: International Energy Conservation Code (IECC) published by the International Code Council (ICC) for residential buildings, and the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) for commercial buildings. Energy efficiency standards established by Sec. 201 would be based on 2006 versions of existing codes.
While the bill establishes a uniform national standard, Sec. 304 (c)(1) allows states to either adopt the national code as their own, or develop its own standards that “meet or exceed the target met in the new national energy efficiency building code, to achieve equivalent or greater energy savings.”
Connecticut is already working to update state building codes to increase energy efficiency standards. On July 8, 2009, Governor M. Jodi Rell signed Public Act 09-192 into law. The bill, passed unanimously by the two chambers of the Connecticut General Assembly, requires the state to adopt the upcoming 2012 IECC standards within 18 months of its publication. These standards are expected to meet or exceed the standards outlines in the energy bill, meaning that Connecticut has already taken action to improve energy efficiency of its buildings. The law states that the new standards would apply to buildings “that qualify as a new construction or a major alteration of a residential or nonresidential building.”
So, this bill does not require those who own existing homes to do anything to bring homes up to any future new energy standards before selling their house? Correct. The new national or state energy efficiency standards for future building codes apply to future new homes and buildings, not existing homes.
What if I want to upgrade my house, are there any resources available in this bill? Yes. Sec. 202(b) of the bill establishes the Retrofit for Energy and Environmental Performance (REEP) program, which, according to Sec. 202(c), “will help facilitate the retrofitting of existing buildings across the United States to achieve maximum cost-effective energy efficiency improvements and significant improvements in water use and other environmental attributes.” Participation in REEP is voluntary, and is meant to provide resources to those homeowners that want to improve the energy efficiency of their existing home.
Through REEP, homeowners can receive federal assistance to conduct an energy audit on their home to identify improvements that can be made to make their home more energy efficient, as well as help pay up to 50 percent of the cost of retrofitting their home. Again, this is a voluntary program for those who want to participate.
In addition, there are other options already available to homeowners. For example, The Access Community Action Agency provides a number of federal and state-funded energy and weatherization services to homeowners, such as assistance in conducting energy audits, as well as replacing insulation, windows, heating repairs, , caulking and weather-stripping of doors and windows. Such improvements can help reduce your utility bills by making your home more energy efficient. Access serves Windham, Tolland and New London counties, and can be contacted at 860-450-7400 or visit the organization's website .
Furthermore, the American Recovery and Reinvestment Act (ARRA) provided $64 million to Connecticut for helping homeowners lower their energy bills through weatherization improvements. You can learn more about the program by visiting the Connecticut Department of Social Services's website or by calling 1-800-842-1132.
I have heard that the government be allowed to inspect or perform an “energy audit” on my existing house whenever they want. Is that correct? No. Some have said that the bill allows the state to inspect their house whenever it wants in order to force existing homes to be brought up to future new energy standards. However, nothing in the bill allows the federal or state government to do this.
Sec. 304(e) of the bill leaves it up to the state to enforce its new building codes. According to Connecticut state law PA 09-192 described above, compliance to the new codes would be enforced “at the time of application for a certificate of occupancy” for buildings “that qualify as a new construction or a major alteration of a residential or nonresidential building.”
The new national building code standards have often been confused with Sec. 204 of the bill, which establishes a Building Energy Efficiency Performance Labeling Program. This program, which applies only to new homes and building, simply allows states to establish programs to inform consumers about the energy efficiency performance of new homes and buildings built after this bill goes into effect.
In order to ensure that this information is available for potential homebuyers to access and utilize, the bill suggests that states make this information available by disclosing a building’s efficiency label through public records connected to new or renovated buildings, such as those generated as part of an inspection process or energy audits conducted with state or federal funds. While the bill outlines several ways that states can do this, it leaves the decision on how to best make the labeling information available to homebuyers entirely up to the state.
Doesn’t this bill punish states that don’t inspect or audit existing homes? No. The bill requires the states to ensure enforcement of the new national or state energy efficiency codes, whichever a state may adopt. Sec. 304(e)(2) requires states to demonstrate to the Secretary of Energy how they have enforced the new codes, and according to Sec. 304(e)(3), a state would be considered in compliance “if at least 90 percent of new and substantially renovated building space in that State in the preceding year upon inspection meets the requirements of the code.”
If a state is not found in compliance with this section, it will forfeit some of the emission allowance revenue provided to the state through the bill. This has nothing to do with inspecting existing homes, only ensuring that states enforce new energy efficiency building codes for buildings constructed in the future.
I heard that this bill will raise gas prices by 77 cents. Is this true? No. To cause a $.77 increase in gas prices, the bill would have to result in an allowance credit costing $85 per ton of CO2. However, the Congressional Budget Office’s (CBO) analysis of the bill estimates that the cost of an allowance for a ton of C02 will be $26 in 2019.
Is “cap and trade” new to Connecticut? No. Connecticut is a charter member of a 10-state Regional Greenhouse Gas Initiative (RGGI) that is currently the only cap and trade system operating in the US. It was initiated in 2003, kicked off in 2008, and has already conducted auctions that have produced revenue that has been reinvested in energy assistance and efficiency initiatives.
The most recent auction, held on June 17, 2009, yielded $4.7 million for Connecticut's clean energy and energy efficiency programs, bringing the state’s total revenue to nearly $18 million since the system started.
What is in this bill for Connecticut ratepayers? Over half – 55 percent – of the revenues raised through the bill will be used to reduce utility costs for individuals, households and businesses – including a 1% set-aside for direct assistance for homes that use heating oil.
In fact, leading supporters and opponents of the bill admit that Connecticut consumers fair well under ACES – for example, an analysis by the Murray Energy Corporation, the nation’s largest independent coal producer and an opponent of the bill, showed that Connecticut would receive $26.2 million more in allowances than it costs to generate electricity, which will serve as a net-boost to homes and businesses in our state, while an analysis by the National Resources Defense Council, which supports the bill, estimates that Connecticut consumers will save $8 a month on their electric bills.
In addition, Connecticut already generates nearly half of its electricity from nuclear energy, giving the state an advantage over other states that rely on coal, oil, and gas-based electricity production who will have to purchase allowances – meaning that any potential long-term rate increases will likely be far lower for Connecticut than other states and regions.
How does this bill invest in new energy technologies? Through 2025, 13 percent of the revenue earned from the sale of carbon allowances would be used for clean energy technology and energy efficiency investments totaling $90 billion. The majority of such funding will be directed through states, of which Connecticut is predicted to receive $1,303,308 in 2012.
Does this bill do anything for nuclear power? The Nuclear Energy Institute (NEI), the nation’s leading nuclear power industry organization, expressed it support for the bill because of its “recognition that any credible program to reduce carbon emissions in the electric sector must include expanded reliance on nuclear energy as part of the portfolio of clean technologies.” NEI cited an EPA analysis of ACES that “demonstrates that achievement of the legislation’s goals for carbon reduction will require approximately 30-40 additional nuclear plants by 2030, an additional 86 new plants by 2040, and an additional 115 new plants by 2050.”
Connecticut already generates nearly half of its electricity from nuclear energy, giving the state an advantage over other states that rely on coal, oil, and gas-based electricity production who will have to purchase allowances.
For more information, please visit the House Energy and Commerce Committee website .
