American Clean Energy and Security Act of 2009: A Potential Boost for Midwestern Manufacturers
July 22, 2009
This briefing paper outlines key provisions of the American Clean Energy and Security Act (ACES) that will help domestic manufacturers capture new markets and create and retain jobs. We find that the ACES legislation, sometimes referred to as the carbon cap, will also reduce the price impact for manufacturing-intensive firms, so that they can transition to an economy in which traditional energy is likely to cost more. Support for business will total about 60 percent of the value of the proposed cap and trade program. Ohio could be one of the largest recipients of a $30 billion program designed to help small- and medium-sized firms retool to produce for clean energy markets and retrofit for greater energy efficiency. A competitive grant program for the states would be focused on automotive communities and communities with high unemployment rates. With these supports, carbon cap is a good deal for Ohio.