ACESA Cap‐and‐Trade to Affect Water Utilities

Abstract

This article discusses the American Clean Energy and Security Act (ACESA), proposed by Representatives Henry Waxman (D‐CA) and Ed Markey (D‐MA), and is also referred to as the “Waxman‐Markey Cap‐and‐Trade Bill.” The bill is more than 900 pages long and includes a two‐pronged approach to reducing greenhouse gas emissions. The first is a set of mandates requiring efficiencies on industry and consumers without regard to costs and benefits. Mandates include requirements for low‐carbon motor fuels and a tenfold increase in the production of electricity from renewable sources. The second is a cap‐and‐trade program that sets absolute limits on total emissions of greenhouse gases. The article discusses the following specific aspects of the bill: Title 1 ‐ Clean Energy; Title 2 ‐ Energy Efficiency; Title 3 ‐ Global Warming; Title 4 ‐ Transitioning to a Clean Energy Economy; effectiveness of ACESA; ACESA economic effects; and, effect on public water system rates.