Louisiana’s Opportunity to Create Jobs and Save Residents and Business Billions on Their Energy Bills
Soon Louisiana could join the majority of states in the nation, including its neighbor Arkansas, in realizing the vast benefits of energy efficiency for its electric and natural gas customers.
Any day now the legal and technical advisors to the City Council of New Orleans are expected to make recommendations for the proposed integrated resource plan and 2014–2017 energy efficiency programs for the city. New Orleans has been an efficiency leader in the Southeast with its quick-start Energy Smart programs that have been running since 2011.
Energy Efficiency Programs and Policies Could Save Louisiana Residents and Businesses over $4 Billion
New Orleans Already Beginning to Lead State in Energy Efficiency Efforts, but Tremendous Savings for Residents and Businesses Still Untapped
Today I have the privilege of testifying before the House Energy and Commerce Committee. My hope is that this is the beginning of a discussion that will lead to federal energy efficiency legislation later this year.
The impact of investments in energy efficiency extends well beyond reducing energy costs or addressing the environmental impacts of energy extraction and use. These investments provide jobs for American workers and help them to support their families and communities.
The economic benefits of energy efficiency extend far beyond lowering energy bills for consumers. Efficiency also contributes to economic development and job creation. But who benefits most from these economic opportunities? At every step of the economic value chain produced by efficiency investments (see figure below), there are opportunities to target the economic and social benefits to those households, businesses, geographies, or sectors for whom they will make the biggest difference.
The Department of Transportation and the Environmental Protection Agency today finalized federal car and light truck fuel economy and greenhouse gas emissions standards for model years 2017 to 2025. The standards, together with those previously adopted for model years 2012 to 2016, mean an 80 percent increase in fuel economy for the average model year 2025 vehicle from the 2011 CAFE (Corporate Average Fuel Economy) requirement of 27.6 miles per gallon.
As the energy efficiency of products, homes, and businesses improves, it becomes less expensive to operate them. The rebound effect postulates that people increase their use of products and facilities as a result of this reduction in operating costs, thereby reducing the energy savings achieved. Periodically, some analysts raise questions about the rebound effect, arguing that it is a major factor that needs to be accounted for when analyzing energy efficiency programs.