More Than Half of U.S. States Now Have Energy Efficiency Resource Standards

While the U.S. Congress cannot come together to pass an energy bill, two states recently adopted comprehensive sets of policies on utility energy efficiency programs, including an Energy Efficiency Resource Standard (EERS).

These recent adoptions help the U.S. reach a new benchmark: more than half of the states (26) now have an EERS in place. EER standards require electricity and natural gas companies to reach annual energy savings goals by offering energy efficiency program services.

In early December, Arkansas became the first Southeastern state to adopt a comprehensive set of EERS and experts are hoping that other Southeastern states follow suit. Wisconsin then became the 26th state with such policies when it adopted a similar set of standards. These 26 states account for 65% of American electricity demand and these EERS policies will provide electricity savings equal to 6% of nationwide retail sales by 2020.

Steven Nadel, Executive Director of the American Council for an Energy-Efficient Economy (ACEEE), remarked: "The actions taken in Arkansas and Wisconsin should signal to policymakers at the state and federal level that moderate and even conservative constituencies can rally behind the cause of creating an energy-efficient economy. Energy efficiency is an abundant resource that reduces waste across all sectors and improves economic productivity."

ACEE considers Arkansas target goals to be modest; they require an annual reduction of 0.25% in electric kilowatt-hour (kWh) sales to 0.75% of total electric kWh sales over the next three years – and slightly less for natural gas sales.

The Wisconsin electricity goals, as a percent of peak load and electric sales, amount to 0.75% in 2011, ramping up to 1.5% in 2014 – with natural gas goals of 0.5% in 2011, ramping up to 1% in 2013.