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When buildings have been retrofitted to be more energy efficient and combined heat and power systems are used more broadly, we will have reduced energy demand significantly and cost effectively, while creating more jobs domestically. We can then look at the mass deployment of renewable energy technologies. Over time these technologies will mature and become more affordable. This process can be enhanced through policy implementation that incentivizes renewable energy development.
The electric grid will need to be expanded. This will allow for more interstate transmission of renewable electricity from the areas where the resources are good such as the southwest, for solar, and the central and plains states, for wind, to the areas where the population centers are such as the east and west coasts. If these grids are smart and allow for real-time energy pricing then demand will be leveled out. This unified national smart grid would include more efficient, higher-voltage long-distance transmission lines; "smart" distribution networks that use the internet to connect smart meters in homes and along the grid; energy storage units (i.e. batteries) throughout the network; and two-way communication between the equipment that consumes electricity and the equipment that produces it.
We can envision a future where most cars on the road are electric. At night, consumption across the grid is lower because lights are off, buildings are closed, and less manufacturing occurs. Owners of electric cars will plug their cars into the grid at night and recharge them after being driven during the day. Since, demand for electricity is lower, prices for this utility will be lower. With smart meters, residents will be charged for the actual cost of electricity at time of use rather than an average price. They will be incentivized to set washing machines and dishwashers to run at night when electricity demand is lowest. All of this evens out the demand on the grid, which means that power plants do not need to operate at peak capacity and reduces the need for new plants.
Transportation comprises nearly a third of energy demand in the United States so energy savings achieved here will translate to overall energy savings. To reduce energy consumption by vehicles we need to encourage vehicle efficiency and conservation. This is accomplished through the Corporate Average Fuel Economy (CAFÉ) standards. Congress first enacted these standards in 1975 due to the rising cost of gas that resulted from the country’s dependence on increasing levels of petroleum imports. The National Highway Traffic Safety Administration sets fuel economy standards for cars and light trucks sold in the United States while the EPA calculates the average fuel economy for each manufacturer. In addition to CAFÉ standards, in 1975 the speed limit on United States highways was reduced to 55 mph to limit gas consumption. Figure Carbon Dioxide Emissions and Fuel Economy by Model Year shows that model year 2009 had the lowest CO 2 emission rate (397 g/mi) and highest fuel economy (22.4 mpg) since tracking began in 1975.
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