National Action Plan for Energy Efficiency e-Newsletter

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This is an e-Newsletter of the National Action Plan for Energy Efficiency—a public-private initiative to advance state policies and achieve all cost-effective energy efficiency by 2025.

December 2008, Issue #1

In this issue:

New Commitments to Energy Efficiency
New Technical Resources Available
2008 State Energy Efficiency Policy Highlights
Making More Progress
For More Information

New Commitments to Energy Efficiency

Ameren and Cascade County, Montana have joined the more than 120 organizations that have endorsed the Action Plan’s five key policy recommendations and/or made public commitments to energy efficiency. See their commitments and others.

In February 2008, the National Association of Regulatory Utility Commissioners (NARUC) passed a resolution in support of the National Action Plan Vision for 2025.

New Technical Resources Available

Three new documents were released at the NARUC Annual Convention in New Orleans on November 18, 2008. These documents are:

National Action Plan Vision for 2025: A Framework for Change. This updated document includes revised, Leadership Group-reviewed approaches for measuring progress toward the goal of achieving all cost-effective energy efficiency by 2025. Measurement approaches are provided for most of the 10 implementation goals and across a set of quantitative metrics. The document also provides a snapshot of the key state policies as 2006/2007. The report shows that:
- In 2006, states, utilities, and other organizations saved about 63 billion kilowatt-hours and avoided greenhouse gas emissions equivalent to those from about 9 million vehicles through energy efficiency programs.
- These organizations are spending about $2 billion annually.
- About half of the states have established energy efficiency programs for their key customer classes and routinely adopt up-to-date building codes.
- About a third of the states have established energy savings targets and are addressing utility disincentives for energy efficiency.
- Far fewer states have progress in a number of other important areas.
Understanding Cost-Effectiveness of Energy Efficiency Programs (PDF) (96 pp., 1.1M). A new technical assistance document is available to assist states in achieving the Vision implementation goal three. This document provides guidance on establishing cost-effectiveness tests for energy efficiency programs, including information on how other states are using the five standard tests to assess the cost-effectiveness of energy efficiency resources.
Utility Best Practices Guidance for Providing Business Customers with Energy Use and Cost Data (PDF) (56 pp., 341K). A new technical assistance document is available to assist states in achieving the Vision implementation goal eight. This document summarizes the current state of utility practices and the customer, business, and policy cases for providing customers with consistent, standardized energy use and cost data.

2008 State Energy Efficiency Policy Highlights

State policy-makers, including utility commissions, state legislators, and governors’ offices, are advancing energy efficiency in many of the key policy areas outlined in the National Action Plan. Recent actions include:

The California Public Utilities Commission adopted the Energy Efficiency Strategic Plan, which considers energy efficiency to be the highest priority resource and is the state’s first integrated framework of energy efficiency goals and strategies that covers government, utility and private sector initiatives. The plan was developed through a comprehensive stakeholder process built around the four “Big Bold Strategies” for energy efficiency.
The EmPOWER Maryland Energy Efficiency Act of 2008 established a statewide goal of achieving a 15 percent reduction in per capita electricity use, relative to 2007 levels, by the end of 2015. Savings are to be met by a combination of electric utilities and Maryland Energy Administration efficiency efforts.
In Massachusetts, a Department of Public Utilities order (96 pp., 347K) this summer sets forth a plan for establishing a new base rate adjustment mechanism, or decoupling, to be adopted by electric and natural gas utilities. Also in Massachusetts this summer, Governor Deval Patrick signed into law the Green Communities Act (98 pp., 328K) which establishes long-term plans for the reduction of energy consumption, focusing on energy efficiency as a first step in meeting future energy demand before traditional supply-side options are pursued.
Michigan's Clean, Renewable, and Efficient Energy Act of 2008 established annual electricity savings targets for the state, requiring electricity providers energy savings to rise from 0.3 percent of retail sales in 2009 to 1.0 percent of retail sales in 2012 and each year thereafter. Natural gas providers are required to ramp up annual energy savings from 0.1 percent of retail sales in 2009 to 0.75 percent of retail sales in 2012 and each year thereafter.
The New Jersey Energy Master Plan has been finalized to advance the Governor’s directive to achieve a 20 percent reduction in electricity usage by 2020.
New Mexico's amended Efficient Use of Energy Act (PDF) (14 pp., 48K) requires electric utilities to achieve at least 5 percent energy efficiency savings from 2005 electricity sales by 2014 and 10 percent by 2020.

Share your story . . .

This e-newsletter includes only a sampling of recent energy efficiency policy changes across the country. Please share your story by contacting Stacy Angel.

Under its Energy Efficiency Portfolio Standard proceeding (49 pp., 90K), the New York State Public Service Commission increased its energy efficiency funding and goals. In addition, $27 million in utility incentives were allocated to encourage utilities to develop cost effective energy efficiency programs. Separately, the commission approved "Fast Track" energy efficiency programs (PDF) (103 pp., 571K) to be administered by the New York State Energy Research and Development Authority.
In Ohio, investor-owned utilities are now directed to achieve energy savings of 22.5 percent through energy efficiency programs by the end of 2025 as part of legislation that also authorizes the Public Utilities Commission of Ohio (PUCO) to develop rules for electric utility decoupling.
Wisconsin is considering a number of energy efficiency policies, consistent with the Governor's Task Force on Global Warming recommendations. Proposed energy savings goals include an annual 2.0 percent reduction in electric load and an annual 1.0 percent reduction to the natural gas load by 2015 after a ramp-up period.

Making More Progress

Achieving all cost-effective energy efficiency by 2025 will require the cooperation, collaboration, and commitment of all of us — energy users, efficiency providers, utilities, and states. Educating key stakeholders on the benefits of and opportunities for energy efficiency is a key component of the Action Plan. During 2008, the tools and resources of the Action Plan were presented at over 50 conferences and training events at the national, regional and state level. If you would like to highlight the Action Plan goals, tools, and resources at events and in presentations, contact Stacy Angel (angel.stacy@epa.gov) and/or leverage the outreach tools on the Action Plan Web site.

For More Information

Visit www.epa.gov/eeactionplan or contact:

Stacy Angel
U.S. Environmental Protection Agency
Office of Air and Radiation
Climate Protection Partnerships Division
Tel. (202) 343-9606
Email angel.stacy@epa.gov

Larry Mansueti
U.S. Department of Energy
Office of Electricity Delivery and Energy Reliability
Tel. (202) 586-2588
Email lawrence.mansueti@hq.doe.gov

To join the National Action Plan for Energy Efficiency Listserv, please e-mail eeap@erg.com.

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