How Will New Fuel Economy Regulations Affect Your State?
Washington, D.C.//August 28, 2012//With the Obama Administration's announcement today of historic fuel-efficiency standards for vehicles (54.5 miles per gallon, on average, by 2025), the BlueGreen Alliance and the Natural Resources Defense Council have assembled a detailed accounting of the huge benefits that are projected to accrue by the year 2030.
The data include a state-by-state breakdown of the 570,000 jobs that could be created in the United States by 2030 - as well as other benefits from the standard. In addition to the jobs created, the country will save nearly 23 billion of gasoline in 2030 alone, resulting in $54 billion in net savings to consumers and the reduction of 270 million metric tons of carbon dioxide pollution, which helps cause global warming.
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The 54.5 mpg standards promise to bolster the strong automobile recovery we are seeing today. For additional information about how fuel efficiency is driving job growth, see www.DrivingGrowth.org.
The chart and graphics with state-by-state numbers can be found below. Reporters are invited to take advantage of this resource and graphic as they prepare stories about these landmark standards.
For additional background information on the new fuel efficiency standards, click here.
2030 State Benefits of Achieving 54.5 mpg-equivalent Fleet Average in Model Year 2025
Sources: Natural Resources Defense Council and BlueGreen Alliance
State fuel and pollution savings are from analysis by NRDC. These figures update and augment similar tables provided in NRDC's "Relieving Pain at the Pump" publication from April 2012. Main adjustments include updates to fuel prices and vehicle miles traveled per the latest forecasts in the Energy Information Administration's Annual Energy Outlook 2012.
State jobs figures are from BlueGreen Alliance's analysis for "Gearing Up: Smart Standards Create Good Jobs Building Cleaner Cars", June 2012.
Table 1: Jobs Created and Annual Consumer Savings of Model Year 2017 to 2025 Standards in 2030
Ofwat allows retailers to raise prices from April
Retailers can recover a portion of excess bad debt by temporarily increasing prices from April 2022, according to an Ofwat statement.
The regulator confirmed its view that levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue, thereby allowing "a temporary increase" in the maximum prices. Adjustments to price caps will apply for a minimum of two years to reduce the step changes in price that customers might experience.
Measures introduced since March 2020 to contain the spread of Covid-19 could lead to retailers facing higher levels of customer bad debt. Retailers’ abilities to respond to this are expected to be constrained by Ofwat strengthening protections for non-household customers during Covid-19 and the presence of price caps.
In April last year, Ofwat committed to provide additional regulatory protection if bad debt costs across the market exceeded 2% of non-household revenue.
Georgina Mills, Business Retail Market Director at Ofwat said: “These decisions aim to protect the interests of non-household customers in the short and longer term, including from the risk of systemic Retailer failure as the business retail market continues to feel the impacts of COVID-19. By implementing market-wide adjustments to price caps, we aim to minimise any additional costs for customers in the shorter term by promoting efficiency and supporting competition.”
There are also three areas where Ofwat has not reached definitive conclusions and is seeking further evidence and views from stakeholders:
- Pooling excess bad debt costs – Ofwat proposes that the recovery of excess bad debt costs is pooled across all non-household customers, via a uniform uplift to price caps.
- Keeping open the option of not pursuing a true up – For example if outturn bad debt costs are not materially higher than the 2% threshold.
- Undertaking the true up – If a 'true up' is required, Ofwat has set out how it expects this to work in practice.
Further consultation on the proposed adjustments to REC price caps can be expected by December.
"While it’s great that regulators are helping the industry deal with bad debt in the wake of the pandemic, raising prices only treats the symptoms. Instead, water companies should head upstream, using customer data to identify and rectify the causes of bad debt, stop it at source and help prevent it from occurring in the first place," she said.
"While recouping costs is a must, water companies shouldn’t just rely on the regulator. Data can help companies segment customers, identify and assist customers that are struggling financially, avoiding penalising the entire customer in tackling the cause of the issue."
United Utilities picks up pipeline award
A race-against-time plumbing job to connect four huge water pipes into the large Haweswater Aqueduct in Cumbria saw United Utilities awarded Utility Project of the Year by Pipeline Industries Guild.
The Hallbank project, near Kendal, was completed within a tight eight-day deadline, in a storm and during the second COVID lockdown last November – and with three hours to spare. Principal construction manager John Dawson said the project helped boost the resilience of water supplies across the North West.
“I think what made us stand out was the scale, the use of future technology and the fact that we were really just one team, working collaboratively for a common goal," he said.
Camus Energy secures $16m funding
Camus Energy, which provides advanced grid management technology, has secured $16 million in a Series A round, led by Park West Asset Management and joined by Congruent Ventures, Wave Capital and other investors, including an investor-owned utility. Camus will leverage the operating capital to expand its grid management software platform to meet growing demand from utilities across North America.
As local utilities look to save money and increase their use of clean energy by tapping into low-cost and low-carbon local resources, Camus' grid management platform provides connectivity between the utility's operations team, its grid-connected equipment and customer devices.