American Clean Energy & Security Act of 2009

1. American Clean Energy & Security Act of 2009 H.R. 2454 July 7, 2009 Kankakee Regional Chamber of Commerce By Gary H. Baise Attorney at Law Olsson Frank Weeda, P.C. Washington, D.C.

2. Review of Key Provisions • Purpose • Create Clean Energy Jobs • Achieve energy independence • Reduce global warming pollution- Greenhouse Gas (GHG) • Transition to Clean Energy Economy Gary H. Baise Attorney at Law

3. Review of Key Provisions • Requires electric utilities use 20% biomass by 2020 • Requires energy efficiency through renewable energy • Carbon Capture & Sequestration • Advanced vehicles Gary H. Baise Attorney at Law

4. Review of Key Provisions • Requires energy-saving standards • Homes, buildings & appliances • Requires 17% carbon emission reduction by 2020 • Protect consumers from energy price increases Gary H. Baise Attorney at Law

5. Review of Key Provisions • Covered sources include: • All electric power generators • Natural gas liquid petroleum producers/importers • Producers & Importers of fluorinated gases Gary H. Baise Attorney at Law

6. Review of Key Provisions • Covered sources include: • Industrial sources emitting 25,000 metric tons • All sources regardless of size in selective energy intensive sectors in 2014 • Natural gas local distribution companies added in 2016 Gary H. Baise Attorney at Law

7. Policy Drivers • Increase fuel economy – 35mpg by 2020 • Electric Cars – 50% of power generation in U.S. is idle at night • 84% of cars and trucks can be powered without any new power plants • Vehicle runs for $0.75 per gallon • Reduce carbon emissions 27% Gary H. Baise Attorney at Law

8. Policy Drivers – Vehicle Miles Driven • Americans drive 5,700 miles a year • Germans drive 3,961 miles a year • Japanese drive 2,368 miles a year • 60% increase by 2030 • Must limit mileage • Avoid infrastructure costs by driving less Gary H. Baise Attorney at Law

9. Policy Drivers – Coal • Coal powers 50% of electricity generation for U.S. • 78% for China • 69% for India • Coal accounts for 33% of U.S. CO2 • 41% globally • 44% by 2030 Gary H. Baise Attorney at Law

10. Policy Drivers • In 2008 • Natural Gas – 48% of all new generating capacity • Wind – 42% • Coal – 6% • Solar, biomass & geothermal equal balance Gary H. Baise Attorney at Law

11. Policy Drivers – Carbon Capture & Sequestration • Three technology options: • Integrated gasification combined cycle (IGCC) – 4 in the world • Precombustion capture • Postcombustion using solvents or membranes Gary H. Baise Attorney at Law

12. Policy Drivers – Carbon Capture & Sequestration • None implemented to scale needed • McKinsey – cost $38-57 per ton of CO2 and high as $77-115 • Legal questions-Safe Drinking Water Act Injection Program Gary H. Baise Attorney at Law

13. The Bill – Title ISubtitle A • Requires: 6% of electricity from renewables & electric savings by 2012 • Gradually rises to 20% by 2020 • Governor – may petition for 12% level • Report each year Gary H. Baise Attorney at Law

14. The Bill • Section 144 requires utilities to publish goals of reducing peak demand & prepare plan to meet goals • Must show electricity savings annually by retail electric suppliers • Pay $25 per mwh in lieu of using renewable electricity credit Gary H. Baise Attorney at Law

15. The Bill • Renewables: wind, biomass, solar, geothermal, certain hydropower, marine & hydrokinetic, biogas, biofuels from eligible biomass, landfill gas • Not all hydroelectric qualifies • Limited biomass may be used Gary H. Baise Attorney at Law

16. The Bill – Subtitle BCarbon Capture & Sequestration • EPA set standard for coal fired plants permitted in 2009 & thereafter • Emission standard & schedule – 50% reduction 2009-2020 • Meet new standard within 4 years after technology deployment Gary H. Baise Attorney at Law

17. The Bill – Subtitle CElectric Vehicles & Infrastructure • Requires utilities to develop plans for electric vehicle infrastructure • Financial assistance to retool factories to build electric vehicles • $50 billion for re-equiping factories • Emission allowances for auto mfg. of plug-in electric drive Gary H. Baise Attorney at Law

18. The Bill – Subtitle ESmart Grid • Requires program to reduce peak electric demand • Utilities will reduce or mitigate peak demand during calendar year 2012 by a minimum percentage amount Gary H. Baise Attorney at Law

19. The Bill – Title II, Subtitle ABuilding Efficiency • Establish by 2014 targets to improve energy building codes to 30% reduction in energy use • January 1, 2015 commercial buildings additional 50% • Building retrofit for existing residential & nonresidential Gary H. Baise Attorney at Law

20. The Bill – Title II, Subtitle ABuilding Efficiency • EPA & DOE will develop standards for retrofitting buildings • Funding for up to 50% of retrofits • $7,500 rebate to buy Energy Star manufactured home • Energy label for house or multi-tenant building Gary H. Baise Attorney at Law

21. The Bill – Subtitle BLighting & Appliance Efficiency Programs • Adopt new efficiency standards by 2012 – Adopts CA portable light standard • If CA adopts before 2014 this is the national standard Gary H. Baise Attorney at Law

22. The Bill – Subtitle BLighting & Appliance Efficiency Programs • No incandescent lamp of any type • Adopt new television test method Gary H. Baise Attorney at Law

23. The Bill – Subtitle BLighting & Appliance Efficiency Programs • U.S. District Courts – jurisdiction to enforce against any unlabeled product • Portable light fixture does not mean candelabra without lamp shades • Germicidal lamps Gary H. Baise Attorney at Law

24. The Bill - Subtitle CPart B – Mobile Sources • Emission standards for greenhouse gas emissions by 2010 • New heavy duty vehicles & engines • Non road vehicles & engines by 12/31/2012 • Aircraft & aircraft engines by 12/31/2012 • Greatest degree achievable Gary H. Baise Attorney at Law

25. The Bill – Subtitle DIndustrial Energy Efficiency • Required to establish standards for industrial energy efficiency • DOE conduct assessment of stock & usage of electric motors • Rebate program of $25 per unit of name plate horsepower Gary H. Baise Attorney at Law

26. The Bill – Subtitle DIndustrial Energy Efficiency • In 2014 industrial facilities emitting 25,000 MT must have allowances Gary H. Baise Attorney at Law

27. The Bill – Title VIIGlobal Warming Pollution Reduction Program • In 2005, emissions of 7,206,000,000 tons of Greenhouse Gases in U.S. Gary H. Baise Attorney at Law

28. The Bill – Title VIIGlobal Warming Pollution Reduction Program • Allocates 4,627,000,000 allowances in 2012 • Allocates 1,035,000 in 2050 & thereafter Gary H. Baise Attorney at Law

29. The Bill – Title VIIGlobal Warming Pollution Reduction Program • Covered sources reduce GHG levels: • 97% of 2005 level by 2012 • 83% by 2020 • 58% by 2030 • 17% by 2050 Gary H. Baise Attorney at Law

30. The Bill – Title VIIGlobal Warming Pollution Reduction Program • China & India emit more GHGs than rest of world • U.S. emit zero GHGs in 2030 & world will still emit 7 billion tons more than 2005 Gary H. Baise Attorney at Law

31. The Bill - GHGs • CO2, methane, nitrous oxide, sulfur hexafloride, hydrofluorocarbons • Emission allowances • EPA establishes an annual tonnage limit • EPA establishes allowances equal to tonnage limit Gary H. Baise Attorney at Law

32. Allowances • Distribution of free allowances to utilities & other sectors • Reduce job losses & prevent increases in electric bills • Natural gas consumer allowances – • States will administer ½ of funds for efficiency programs Gary H. Baise Attorney at Law

33. The Bill - GHGs • EPA prohibits emissions over allowance limit • Covered entity can use offset credits for allowances • Maximum of 2 billion tons of emissions offsets can be used Gary H. Baise Attorney at Law

34. The Bill – Part D -- Offsets • EPA Offset Integrity Board & Program • Offsets must be verifiable, additional, & permanent Gary H. Baise Attorney at Law

35. The Bill – Part D Offsets • Eligible Offset Projects: Ag, grassland & range land sequestration • Reduce nitrogen use • Reduce flooding of rice paddies • Reduce carbon emissions from soils • Reduce deforestation Gary H. Baise Attorney at Law

36. The Bill – Part D Offsets • Eligible Offset Projects: • Biogas capture • Methane collection • Projects to capture, destroy or avoid emissions of GHGs from industrial sources Gary H. Baise Attorney at Law

37. The Bill – Title VIIIAdditional Standards • EPA must set standard for reduction of GHGs from uncapped sources Gary H. Baise Attorney at Law

38. Title VIII • Within 12 months of enactment, EPA shall publish inventory of categories of uncapped stationary sources • Emit 10,000 tons of CO2 equivalent • In aggregate emit 20% annually of uncapped GHGs Gary H. Baise Attorney at Law

39. The Bill – Title VIIIAdditional Standards • Congress wants EPA to control non-greenhouse gases that might interfere with GHG control effectiveness • EPA can establish work practice without any regard to feasibility • EPA can list source category without endangerment finding Gary H. Baise Attorney at Law

40. Section 333 - Black Carbon • Abatement report within one year of enactment • Diesel retrofit • Address residential cook stoves • Reach 20 million homes • Increase stove efficiency 50% • Abate black carbon emissions in foreign countries • Diesel engines emit less or no black carbon Gary H. Baise Attorney at Law

41. Subtitle BGreen Jobs & Worker Transition • Part 2: Worker adjustment assistance • Work in energy producing, energy intensive or consumer goods, public agencies • Adversely affected – 156 weeks at 70% of average week’s pay Gary H. Baise Attorney at Law

42. Subtitle BGreen Jobs & Worker Transition • Part 2: Worker adjustment assistance • Retraining • Transportation assistance • $1,500 for job search assistance • Relocation expense up to $1,500 • Health insurance up to 80% of monthly premiums Gary H. Baise Attorney at Law

43. The BillWhat It Does – Minority Report • India & China have repeatedly stated no interest in binding emission caps • 80% reduction requirement of 2005 levels come from 6 most extreme of 177 model runs by IPCC of the U.N. Gary H. Baise Attorney at Law

44. The BillMinority Report • Labeling system for homes and buildings – stigmatizes existing homes • Regulatory control over virtually all major sectors of U.S. economy will unquestionably cause job losses Gary H. Baise Attorney at Law

45. The BillMinority Report • Increase energy costs for energy intense industries • Unlikely any new coal plants to be built • Unspecified reductions in peak electricity Gary H. Baise Attorney at Law

46. The BillMinority Report • Massive new energy tax • Insufficient U.S. offsets then ¾ of offsets come from developing nations • Civil suits - Any person may file suit against any other person for violation of any GHG emission standard Gary H. Baise Attorney at Law

47. The BillMinority Report • 2018 – States can have own Cap & Trade programs • National program to measure report & publicly disclose a product or material sold – carbon content Gary H. Baise Attorney at Law

48. The BillMinority Report • Authorizes over a trillion dollars of taxpayer funds • Massive expansion of EPA Gary H. Baise Attorney at Law

49. H.R. 2454 • Thank you Gary H. Baise Attorney at Law