B631 - Green Transport and Homes Bill 2014

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Jarred
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B631 - Green Transport and Homes Bill 2014, TSR Government


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Green Transport and Homes Act 2014

An Act which builds upon the Energy Act 2013 to transition more of the UK's infrastructure to green energy.

BE IT ENACTED by The Queen's most Excellent Majesty, by and with the advice and consent of the Commons in this present Parliament assembled, in accordance with the provisions of the Parliament Acts 1911 and 1949, and by the authority of the same, as follows:—

Preamble
The Energy Act 2013 promises to transfer the entirety of Britain's electricity production to green sources by 2030. Bearing this in mind, we can now move towards eliminating the use of fossil fuels in other areas of our life – primarily by transferring them to electricity based technologies.

1 Green Finance Pool
  1. A new monetary pool will be established, known as the "Green Finance Pool".
  2. All proceeds from the Green Finance Pool shall be used for the funding of research projects related to electricity production and transmission, nuclear fission or fusion as a means to produce electricity, and clean replacements for the internal combustion engine, as well as other things approved by legislation.
  3. Section 1(4) of the Energy Act 2013 shall be modified from:—

    "All proceeds from the Coal Usage Levy shall go towards the funding of research projects related to electricity production and transmission, nuclear fission or fusion as a means to produce electricity, and clean replacements for the internal combustion engine."

    to:—

    "All proceeds from the Coal Usage Levy shall be placed in the Green Finance Pool, as established by Section 1(1) of the Green Transport and Homes Act 2014."


2 Homes
  1. A 'gas boiler' is a device used convert cold mains water into hot water for use in private and public buildings through the use of coal, natural gas or any derivative of crude oil.
  2. An 'electric boiler' is a device used convert cold mains water into hot water for use in private and public buildings through the use of mains electricity.
  3. A new duty, the "Gas Boiler Purchase Duty", will be levied at the rate of 50% upon all purchases of gas boilers after 1st January 2015.
  4. After 1st January 2015, a new duty, the "Gas Boiler Usage Duty", will be levied at the rate of 1% of annual household income per annum or 1% of business profits per annum per building owned by the business and containing a functioning gas boiler.
  5. All publicly owned buildings must switch to electric boilers by 1st January 2015.
  6. All proceeds from the Gas Boiler Purchase Duty and the Gas Boiler Usage Duty will be placed in the Green Finance Pool.
  7. A 20% subsidy will be given to all purchases of electric boilers, which must be passed on to the purchaser.
  8. From 1st January 2015, all recipients of the State Pension, as well as all households with an income of less than £10,000, will be entitled to a single new electric boiler to replace an existing gas boiler free of charge and with free installation. This will be paid for, in part, by money from the Green Finance Pool.


3 Road Transport
  1. Petrol station owners will be entitled to a 10% refund in corporation tax if more than 75% of their stations have two or more electric car charging stations.
  2. A 10% subsidy will be given to all purchases of electric, hydrogen or hydrogen fuel cell powered vehicles, which must be passed on to the purchaser.
  3. After 1st January 2015 a new duty, the Vehicle Emissions Duty, will be introduced on vehicles powered wholly or in part by coal, natural gas or any derivative of crude oil will be increased on a linear scale between the 20% for vehicles in vehicle tax rate band A and 40% for vehicles in vehicle tax rate band M.


4 Rail Transport
  1. British Railways shall, over the next ten years and funded by network usage charges (Section 1(5) of the Railways (Operation) Act 2013), add overhead catenary wires for use with pantographs to all railway lines which do not already have this technology.
  2. On 1st January 2026, the following shall be inserted before Section 2(7)(1) of the Railways (Operation) Act 2013:—

    "2(7)(1) All trains must be electrically powered."

    and the numbering of the following subsubsections shall be modified accordingly.


5 Short title, Extent, Enactment, etc.
  1. This Act may be referred to as the Green Transport and Homes Act 2014.
  2. This Act extends to the entire United Kingdom.
  3. This Act will come into force on 1st April 2014, following Royal Assent.



Costings
Spoiler:
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Costings
Costings are very rough estimates and are for the first year of enforcement (2015) only. Figures cannot be projected beyond 2015. Inflation between 2014 and 2015 is not accounted for. The Electric Vehicles Subsidy (payment) and Gas Boiler Purchase Duty (income) are not taken into account, as purchase figures for these items are likely to deviate rapidly from 2012/2013 as a result of this Bill.

Gas Boiler Usage Duty
Mean monthly household income ~£2,166; annual is ~£24,000
Number of homes in the UK is 25,000,000
Subtotal: +£6bn

Total UK business turnover: £3,100,000,000,000
Assuming every business has no more than one building, and one boiler per building,
Subtotal: +£31bn

Total: +£37bn

http://www.yourmoney.com/your-money/...hree-year-high
http://news.bbc.co.uk/1/shared/spl/h...0/456991/html/
https://www.gov.uk/government/upload...-release-4.pdf

Electric Boiler Subsidy (20%)
Number of homes in the UK is 25,000,000
Average cost of electric boiler is ~£1,000
Therefore average subsidy is £200
Assuming every home purchases one new electric boiler,
Total: -£5bn

Free electric boilers to retirees and low-income homes
10% of household have <£10,000pa => 2,500,000 homes
Number of state pensioners (over 65): 10,376,000 (assume one home per)
Total free boiler recipients: ~12,800,000
Average cost of electric boiler is (inc. subs.) ~£800
Total: -£10.2bn

http://en.wikipedia.org/wiki/Income_...usehold_income
http://en.wikipedia.org/wiki/Demogra...#Age_structure

Vehicle Emissions Duty
Number of new cars in UK: ~400,000
Median VED rate: 30%
Mean car price: ~£28,000
Total: +£3.3bn

http://www.bbc.co.uk/news/business-24396562
http://www.thisismoney.co.uk/money/c...-25-years.html

Overall
Total out: £15.2bn
Total in: £40.3bn
Net flow: +£25.1bn into the Green Finance Pool

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Rakas21
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Clip
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I cannot support this bill. It makes no sense. It encourages switching from highly efficient and cheap methods of heating to highly inefficient and expensive methods of heating.

Furthermore, with 3/4 of all electricity being generated by fossil fuels - what exactly is the point?
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Cheese_Monster
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I commend the Government on this bill!
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Qwertish
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(Original post by Clip)
I cannot support this bill. It makes no sense. It encourages switching from highly efficient and cheap methods of heating to highly inefficient and expensive methods of heating.

Furthermore, with 3/4 of all electricity being generated by fossil fuels - what exactly is the point?
But by 2030 all electricity will be nuclear and renewable...
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Qwertish
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(Original post by Cheese_Monster)
I commend the Government on this bill!
Nice to get cross party support for the really important issues
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Will95206
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An Aye for I. Nice pic Rakas!
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Clip
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(Original post by Qwertish)
But by 2030 all electricity will be nuclear and renewable...
Then present the bill in 2030.
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Qwertish
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(Original post by Clip)
Then present the bill in 2030.
What if I push back the start date for the subsidies etc to 2030 rather than 2015?
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That Bearded Man
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An aye from me as well - btw as for Electric cars - is there any evidence to say that electric cars are better for the environment considering their powered by the mains - instead of promoting some form of hydrogen system?

I can understand it's use as an alternative to the high fuel prices - but is it?
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Rakas21
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(Original post by That Bearded Man)
An aye from me as well - btw as for Electric cars - is there any evidence to say that electric cars are better for the environment considering their powered by the mains - instead of promoting some form of hydrogen system?

I can understand it's use as an alternative to the high fuel prices - but is it?
Well it depends what your using to generate power from the mains. Electric cars about a quarter of the cost to run though per mile compared to petrol (though you have to charge more often and the cars cost more). Hydrogen is expensive.
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Qwertish
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(Original post by That Bearded Man)
An aye from me as well - btw as for Electric cars - is there any evidence to say that electric cars are better for the environment considering their powered by the mains - instead of promoting some form of hydrogen system?

I can understand it's use as an alternative to the high fuel prices - but is it?
So, essentially, the idea is that, given all our electricity production will be 'clean' by 2030 (Energy Bill 2013), we can convert lots of things that currently run on fossil fuels to run on mains electricity.
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SciFiRory
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hmm
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That Bearded Man
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(Original post by Qwertish)
So, essentially, the idea is that, given all our electricity production will be 'clean' by 2030 (Energy Bill 2013), we can convert lots of things that currently run on fossil fuels to run on mains electricity.
(Original post by Rakas21)
MSG
So, while we pursue lower carbon emissions, from day one we promote people to use mains (fossil fuel based) which is less efficient than using a simple petrol/Diesel engine?

I like this bill, but surely we should wait until the mains is more efficient than a fuel engine before people charging electric cars?

Hydrogen research perhaps then is dangerous and expensive. Natural gas I thought also seemed quite efficient, but there seems to be a large risk of methane leakage.

Indeed the new generation of electric cars seems to rely on charging from a generator on board, rather than the mains, thus seems to be scoring high point on efficiency. Again, a subsidy of these would be a better idea than simply encouraging charge from the mains.
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nikkoch
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aye
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PhysicsKid
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No. 1) sets up a Green Deal imitation- look how the real thing turned out. 2.3 and 2.4 are unbelievably regressive. The Government complains about raising food prices for the poor when there are subsidies in place to negate this, while they FORCE people to buy expensive electric boilers at a pitiful 20% subsidy. 3.1 is too generous as is 3.2- it would seem the Government wishes to get off fosill fuels at all costs which is unwise, see 'renewable' but unsustainable biomass burning. I'd like clarification of 3.3 before I comment on it, but my initial instinct is that it could be done much more effectively and fairly. 4) is good, but I feel the timetable could be more ambitious.
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Blue Meltwater
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Some very nice, well-thought out policies here - I particularly like the focus on making electric cars more accessible; our society's current apathy towards preparing for peak oil verges on suicidal. I agree with Clip in that these measures alone are useless without attempts elsewhere to move towards renewable energy production, but these measures will make the transition easier.

So an aye from me! It's very refreshing to see a Tory-led government which doesn't tear itself apart upon implementing green policies.
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Qwertish
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(Original post by Blue Meltwater)
Some very nice, well-thought out policies here - I particularly like the focus on making electric cars more accessible; our society's current apathy towards preparing for peak oil verges on suicidal. I agree with Clip in that these measures alone are useless without attempts elsewhere to move towards renewable energy production, but these measures will make the transition easier.

So an aye from me! It's very refreshing to see a Tory-led government which doesn't tear itself apart upon implementing green policies.
Energy Act 2013

It's all in the Preamble
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Clip
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(Original post by Qwertish)
What if I push back the start date for the subsidies etc to 2030 rather than 2015?
I think a more prudent approach would be to remove the homes section altogether. It doesn't make any sense and IRL would be political cyanide.

Think what you are asking - encouraging people to buy the most inefficient method of heating, which would also use electricity at the most expensive rates.

Additionally, with homebuilding being slow, the effects are likely to be minimal.
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Qwertish
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(Original post by Clip)
I think a more prudent approach would be to remove the homes section altogether. It doesn't make any sense and IRL would be political cyanide.

Think what you are asking - encouraging people to buy the most inefficient method of heating, which would also use electricity at the most expensive rates.

Additionally, with homebuilding being slow, the effects are likely to be minimal.
Well, luckily this isn't IRL and I'm allowed to be an idealist.

Think about it this way – what's going to happen when there's no gas left to power the boilers? How are we going to heat our homes? We'll have to use electric ones, regardless of efficiency. Might as well make the change before it becomes a life-or-death situation, and also get it subsidised while you're at it.
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