American Energy and Security Act
The American Energy and Security Act passed through the U.S. House of Representatives on Friday, June 26, 2009. The bill, part of President Obama’s initiative to curb climate change, requires a 17-percent emissions reduction from 2005 levels by 2020. The plan would reduce United States’ emissions by about 80 percent by 2050.
To reach this significant goal, the government would call for a renewable electricity standard that would require each electricity provider who supplies over 4 million MWh to produce 20 percent of its electricity from renewable sources by 2020. There would also be moves to improve the electricity grid, boost the use of electric cars and commit to energy efficiency.
The cap and trade system is the foundation of the Bill and is also the most controversial. Environmental groups are concerned that a large amount of credits (85 %) will be handed out for free, at no cost to the utility companies. They say that, the free allotment will continue the delay for the U.S. to agree to something that will actually have an impact on stopping the climate crisis.
The American Energy and Security Act proposes a lot of great strides in the U.S.’s efforts reduce global climate change. When passed, it will be interesting how the implementation process goes.
Click here to view a great Reuters Article about the American Energy and Security Act
