US House of Representatives passes historic Waxman-Markey bill

2009-06-29T00:00:00-00:00

The US House of Representatives voted by a narrow margin of seven on Friday to pass the Waxman-Markey bill, the first legislation of its kind in the US aimed at tackling climate change.

The bill, otherwise known as the American Clean Energy and Security Act (ACES), sets a target of a 17% reduction in emissions from 2005 levels by 2020 and an 83% reduction by 2050 and would introduce a cap-and-trade system. Energy suppliers would be required to generate 15% power from renewable sources by 2020 and new efficiency standards would be set for buildings, lighting and industry.

“The House has passed the most important energy and environment bill in our nation’s history,” said Representative Edward J. Markey.
The move has been welcomed by environmental and industry groups, as well as energy companies.

“The American Clean Energy and Security Act will help create jobs, foster more domestic energy production from the wind and the sun, and address the climate threat head-on,” commented Lew Hay, chairman and CEO of FPL Group, one of the country’s largest producers of renewable energy.

Energy companies particularly welcomed the provision in the bill to give free allowances to utilities to mitigate the cost to consumers of decarbonising supply.

“This bill is not everything we need, but it is a critical starting point, at a crucial time,” said WWF president and CEO Carter Roberts.

The Act now goes to the Senate, where a vote could take place this autumn, ahead of climate change talks in Copenhagen in December.

Meanwhile, debate rages over what the bill will actually cost. The Congressional Budget Office estimates that, by 2020, the legislation will cost the average household around $175 a year, with low-income households potentially benefitting by $40 a year. The Environmental Protection Agency projects costs of $80-111 per household per year. Both estimates are significantly lower than the figure of over $3000 cited by Republican John Boehner.

For further information:
waxman.house.gov/
markey.house.gov/
www.house.gov/
www.worldwildlife.org
www.fplgroup.com/
www.pewclimate.org/

Afion Media Ltd

US House of Representatives passes historic Waxman-Markey bill