Www.policymattersohio.org Policy Matters Ohio To create clean energy jobs, achieve energy independence, reduce global warming pollution and transition.

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Policy Matters Ohio To create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy.” The American Clean Energy and Security Act of 2009: September 21,2009

INVESTMENT COMPONENTS OF ACES LEGISLATION Investment is funded by proceeds of allowances for: (1) Consumer Protection (2) Energy Efficiency (3) Transition to a Clean Energy Economy Policy Matters Ohio

Consumer Protection Protection from price increases in electricity, natural gas and home heating oil (Initially 44% of auction proceeds, spread rateably across consumer classes; declines over time…) Rebates to protect budgets of bottom quintile of earners - Households with incomes of up to 150% of poverty line Protection for Energy-Intensive, Trade-Exposed Industries (15% of emission proceeds) Protection for Domestic Energy Production (2% of auction proceeds) Policy Matters Ohio

Energy Efficiency and Clean Energy Technology Investments in carbon capture and sequestration (1.75%) Investments in renewable energy and energy efficiency (10.5%) Investments in Advanced Automobile Technology (3%) Investments in Research and Development (2%) Policy Matters Ohio

Other Public Purposes Domestic and International Adaptation (7%) Clean Technology Transfer and Deployment (1%) Worker Training & Assistance (1.25%) Policy Matters Ohio

Emission Allocations: Free versus Auctioned Over Time

“The American Clean Energy and Security Act of 2009” Title I Clean Energy Policy Matters Ohio

Title I Clean Energy Subtitle A: Combined Efficiency and Renewable Electricity: Starts at 6% in 2012 and gradually rises to 20% in 2020 Subtitle B: Carbon Capture and Sequestration: Establishes a national strategy, sets performance standards for clean coal, funds demonstration and early deployment projects;, addresses geologic formations, etc. Subtitle C: Clean Transportation: Electric Vehicle Infrastructure, Large-Scale Vehicle Electrification Program: Advanced Technology Loans, Plug-In Electric Drive Vehicle Manufacturing; battery manufacturing facilities, biomass for fuel; loan guarantees for construction of renewable fuel pipelines; more…. Subtitle D: State Investment Accounts: SEED (State Energy and Environment Development Accounts) and REEP (Renewable and Energy Efficiency Programs) Subtitle E: Smart Grid Advancement: Assessment of Smart Grid Cost Effectiveness, Inclusions of Smart Grid Capability on Appliance ENERGY GUIDE Labels, Smart Grid Peak Demand Reduction Goals, etc. Policy Matters Ohio

Title I Clean Energy Subtitle F: Transmission Planning: Addresses planning of transmission lines and grids and the siting of facilities Subtitle G: Technical Corrections to Energy Laws Subtitle H: Energy & Efficiency Centers & Research: Clean Energy Innovation Hubs, Advanced energy research, building assessment centers, high efficiency gas turbine research and development Subtitle I: Nuclear & Advanced Energy Technologies: Loan guarantees, clean energy investment fund, energy technology research and deployment Subtitle J: Miscellaneous: Consumer protection, bio-energy partnership, development corporation for renewable energy borrowing authority (Ohio Rep. Marcy Kaptur - $3.5BB)

Title II Energy Efficiency “The American Clean Energy and Security Act of 2009” Policy Matters Ohio

Title II Energy Efficiency Subtitle A: Building Energy Efficiency Programs: Greater Energy Efficiency in Building Codes, Building Retrofit Program, Energy Efficient Manufactured Homes, Building Energy Performance Labeling Program Subtitle B: Lighting and Appliance Energy Efficiency Programs: Lighting Efficiency Standards, Other Appliance Efficiency Standards, Appliance Efficiency Determinations and Procedures, Best-in-Class Appliances Deployment Program, Purpose of Energy Star Energy Star Standards Subtitle C: Transportation Efficiency: Emissions Standards, Greenhouse Gas Emissions Reductions through Transportation Efficiency, SmartWay Transportation Efficiency Program, State Vehicle Fleets…Clean Energy Revolving Loans for states for 2010 and 2011 to allow preparation for the pricing of carbon with up to $500MM in grants for revolving loan funds to support energy efficiency and retooling for clean energy markets (IMPACT legislation in the Senate). Policy Matters Ohio

Title II Energy Efficiency Subtitle D: Industrial Energy Efficiency Programs: Industrial Plant Energy Efficiency Standards, Electric and Thermal Energy Efficiency Award Programs, Waste Heat Recovery Financial Incentives Subtitle E: Improvements in Energy Savings Performance Contracting: Amends the National Energy Conservation Policy Act to establish competition requirements for specific energy savings performance contract task orders. Subtitle F: Public Institutions: Public Institutions, Community Energy Efficiency Flexibility, Small Community Joint Participation, Low- Income Community Energy Efficiency Program. Subtitle G: Miscellaneous: Energy efficient information and communications technologies; National energy efficiency goals; Affiliated island energy independence team; Product carbon disclosure program, etc. Subtitle H: Green Resources for Energy Efficient Neighborhoods: Pertaining to public housing, financing and mortgages

Title III Reducing Global Warming “The American Clean Energy and Security Act of 2009” Policy Matters Ohio

Title III: Reducing Global Warming Pollution Subtitle A: The Clean Air Act (42 U.S.C. and following) is amended by adding after title VI the following new title: “VII: Global Warming Pollution Reduction Program” with goals, targets, rules, emission allowances, distribution of emission allowances, program outlines, penalties, trading, banking and borrowing, strategic reserves, permits, international emissions allowances, treatment of greenhouse gas pollutants in addition to Carbon Dioxide, treatment of state auctions, early actors, trading of allowances, regulation of trading, fees, and other. In this section, the controls of carbon through cap and trade, the use of proceeds of the auction, trading and offsets are defined.

Title IV: Transitioning to a Clean Energy Economy “The American Clean Energy and Security Act of 2009” Policy Matters Ohio

Title IV Transitioning to a Clean Energy Economy Subtitle A: Ensuring Real Reductions in Industrial Emissions: Emission Allowance Rebate Program, International Reserve Allowance Program, Presidential Reports and Determinations Subtitle B: Green Jobs Training and Worker Transition, Climate Change and Worker Adjustment Assistance Subtitle C: Consumer Assistance: Energy Tax Credit, Energy Refund Program for Low-Income Consumer rebate/refund Subtitle D: Exporting Clean Technology: To provide financial and technical resources, to encourage widespread deployment of clean technologies to developing countries that have undertaken appropriate mitigation activities in greenhouse gas reductions. Subtitle E: Adapting to Climate Change: National Climate Change Adaptation Program,: State Programs to Build Resilience to Climate Change Impacts, Public Health and Climate Change:, National Strategic Action Plan, Climate Change Health and Protection Fun d Policy Matters Ohio

“The American Clean Energy and Security Act of 2009” Title V: Agricultural and Forestry Related Offsets Policy Matters Ohio

Title V: Agricultural and Forestry Related Offsets Subtitle A—Offset Credit Program From Domestic Agricultural and Forestry Sources: Establishment, eligibility, requirements, project plan submission and approval; verification; certification; ownership and transfer; program review and revision; environmental considerations. Subtitle B—USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee: Establishment of USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee. Subtitle C—Miscellaneous: International indirect land use changes, Biomass-based diesel, Modification of definition of renewable biomass.