American Clean Energy and Security Act Presents Challenges and Opportunities for Glass Manufacturers
April 29, 2009

While the recently released American Clean Energy and Security Act of 2009 (ACES) is geared to create millions of new clean energy jobs, save consumers hundreds of billions of dollars in energy costs, enhance America's energy independence and cut global warming pollution, certain aspects of the legislation have posed concerns for some in the glass industry; other portions present opportunities.

If passed, the act would require that manufacturers in the glass industry either absorb the increased cost of carbon emissions (via cap-and-trade) or the increased cost of having to deal with additional state and federal regulation.

As part of the cap-and-trade system, manufacturers would be provided an allowance of annual carbon credits. Those manufacturers who are below their established emissions would be able to sell or trade carbon allowances to other companies so that those companies could produce more carbon than the legally established limit.

Some in the industry say these increased costs could significantly impact the ability of flat glass manufacturers to do business in North America, as producers in non-regulated countries, such as China or India, would not be required to meet the regulation.

Despite the challenge of the cap-and-credit system, the ACES Act also presents opportunities for the glass industry, which produces energy-efficient and solar glazing materials. Organizations such as the Glass Association of North America (GANA) are working to ensure these products remain a part of the renewable energy portion of the Act.

"The American Clean Energy and Security Act presents both a crisis in the form of greenhouse gas regulation and an opportunity for the flat glass industry due to its unique position as a manufacturer of the glass used in energy-efficient and solar applications," says Bill Yanek, executive vice president of the GANA. "Hopefully, Congress will strike a balance in not regulating emissions to a degree that it damages the flat glass industry's ability to deliver energy efficient and alternative energy glass products."

CLICK HERE to read a draft of the ACES Act.

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