A piece of legislation that was created in an attempt to establish an economy-wide climate and energy policy to help address the issue of climate change. The U.S House of Representatives passed the act on June 26, 2009, by a vote of 219 to 212.The bill proposes a cap and trade system, under which the government sets a limit (cap) on the total amount of greenhouse gases that can be emitted nationally. Companies then buy or sell permits to emit these gases, primarily carbon dioxide (CO2). The cap is reduced over time to reduce total carbon emissions. The legislation would set a cap on total emissions over the 2012–2050 period and would require regulated entities to hold rights, or allowances, to emit greenhouse gases. After allowances were initially distributed, entities would be free to buy and sell them (the trade part of the program).
The American Clean Energy and Security Act of 2009 is also known as the Waxman-Markey bill after committee chairman Henry Waxman and Rep. Edward Markey. The legislation aims to create a greenhouse gas cap-and-trade system along with various other measures to help the U.S move toward a clean energy economy.