State and Local Policy Database

Energy Efficiency Resource Standards

An energy efficiency resource standard (EERS) is a quantitative, long-term energy savings target for utilities. Under direction from this policy, utilities must procure a percentage of their future electricity and natural gas needs using energy efficiency measures, typically equal to a specific percentage of their load or projected load growth. Energy savings are typically achieved through customer, end-use efficiency programs run by utilities or third-party program operators, sometimes with the flexibility to achieve the target through a market-based trading system.

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: June 2017

In June 2010, Governor Sean Parnell signed House Bill 306 into law. The legislation established Alaska's state energy policy, which included an aggressive renewable electricity goal, as well as a goal to reduce per capita electricity use in the state by 15% by 2020. This goal must be translated into specific requirements for utilities to achieve savings of a specific amount to qualify as an EERS.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: June 2016

Summary: Cumulative annual electricity savings of 22% of retail sales and natural gas savings of 6% by 2020.

In 2010 the Arizona Corporation Commission ordered that, by 2020, each investor-owned utility must achieve cumulative annual electricity savings of at least 22% of its retail electric sales in calendar year 2019 through cost-effective energy efficiency programs (see Docket No. RE-00000C-09-0427Decision No. 71436, and Decision No. 71819). Cumulative annual targets for electricity savings are specified for each year, beginning at 1.25% in 2011, and are based on retail electricity sales in the previous calendar year. Electric distribution cooperatives must propose an annual energy savings goal that is at least 75% of the standard in a given year.

Peak demand savings achieved through demand response programs are allowed to qualify for up to two percentage points of the total 22% cumulative goal (based on a conversion of demand to energy), but there is a limit to the amount of peak demand savings that can be applied to the energy efficiency standard in any given year. Utilities can count energy supply from combined heat and power systems that do not qualify under the state's Renewable Energy Standards towards the energy efficiency standard, as well as one-third of the measured savings from new building codes. Utilities are allowed to credit energy savings achieved during 2005-2010 towards the requirements beginning in 2016.

Utilities must submit an annual or biennial implementation plan to detail progress in meeting goals and to estimate cost and energy savings for programs over the next two calendar years. Utilities may recover the prudent costs of energy efficiency programs through a DSM tariff, and utilities may also request the Commission to consider the use of performance incentives to assist in achieving the goals.

Arizona also has natural gas efficiency standards requiring 6% cumulative savings by 2020 (see Docket No. RG-00000B-09-0428 and Decision No. 71855). As in the case of electric cooperatives, gas cooperatives must propose annual savings goals that achieve 75% of the standard; propane companies must meet 50% of the standard. Energy savings from renewable energy projects sponsored by an affected utility may count towards meeting up to 25% of the standard in any given year.

Salt River Project has also set long-term energy savings goals through its Sustainable Portfolio Principles. These principles establish targets for the utility through its 2020 fiscal year and ramp up to 2% beginning in FY 2018.

Last Updated: July 2016

Summary: For 2020-2022, savings targets are 1.20% of 2018 baseline sales for electric utilities, and 0.5% of baseline sales for natural gas utilities. Incremental savings targets were 0.9% annually for 2015-2018, and 1.0% for 2019, with yearly incremental natural gas savings of 0.5% for 2017-2019. 

In 2018 the PSC ordered higher incremental savings targets in Docket No. 13-002-U, Order No. 43. For program years 2020-2022, the utilities are now required to hit savings targets 1.20% of 2018 baseline sales for electric utilities and 0.50% of 20l8 baseline sales for natural gas utilities. 

In December 2010, Arkansas PSC adopted an energy efficiency resource standard (see Docket No. 08-144-U). The targets set by the Public Service Commission were moderate, rising from a yearly reduction of 0.25% of total electric kilowatt hour (kWh) sales in 2011, to 0.5% in 2012, and 0.75% in 2013. Natural gas targets were set at 0.2% in 2011, 0.3% in 2012, and 0.4% in 2013.

In January 2013, the Public Service Commission issued an order in Docket 13-002-U seeking comment on proposed savings goals for the next three-year program cycle. The proposed goals by the PSC staff would double the previous yearly electricity savings levels to 1% of sales in the first program year, 1.25% in the second, and 1.5% in the third.  Proposed savings targets for natural gas would more than double the previous targets: 0.6%, 0.8%, and 1% per year. Based on stakeholder feedback, the PSC rescheduled the filing date to June 1, 2014, for the next three-year program cycle, and pushed back the start year so that the new program cycle is 2015-2017. For 2014, the PSC directed program administrators to use the energy savings targets, budgets, and the incentive structure previously approved for Program Year 2013 (unless program administrators seek to make modifications to program plans for approval by the PSC). In September 2013, the PSC issued an order setting an electricity savings target of 0.9% and a natural gas savings target of 0.6% for 2015. These targets were extended through 2016.

In December 2015, the PSC issued an order extending the 0.9% electricity savings target through 2018, ramping up to 1.0% in 2019, with a natural gas savings target of 0.5% for 2017-2019.

Last Updated: July 2018

Summary: Electric: Incremental savings targets average about 1.6% (gross) of retail sales from 2020-2025. Natural Gas: Incremental savings target of ~0.6% (gross) from 2020-2025.

Following California’s 2001 electricity crisis, the main state resource agencies worked together along with the state’s utilities and other key stakeholders and developed the California Integrated Energy Policy Report that included energy savings goals for the state’s IOUs. The CPUC formalized the goals in Decision 04-09-060 in September 2004. The goals called for electricity use reductions in 2013 of 23 billion kWh and peak demand reductions of 4.9 million kW from programs operated over the 2004–2013 period. The natural gas goals were set at 67 MMTh per year by 2013.

The California Legislature emphasized the importance of energy efficiency and established broad goals with the enactment of Assembly Bill 2021 of 2006. The bill required the California Energy Commission (CEC), the California Public Utilities Commission (CPUC) and other interested parties to develop efficiency savings and demand reduction targets for the next 10 years. Having already developed interim efficiency goals for each of the IOUs from 2004 through 2013, the CPUC developed new electric and natural gas goals in 2008 for years 2012 through 2020, which call for 16,300 GWh of gross electric savings over the 9-year period (see CPUC Decision 08-07-047). 

In 2015, California essentially doubled its energy efficiency goals by passing SB 350.  This bill requires the State Energy Resources Conservation and Development Commission to establish annual targets for statewide energy efficiency savings and demand reduction that will achieve a cumulative doubling of statewide energy efficiency savings in electricity and natural gas final end uses of retail customers by January 1, 2030. The bill requires the PUC to establish efficiency targets for electric and gas corporations consistent with this goal. It also requires local publicly-owned electric utilities to establish annual targets for energy efficiency savings and demand reduction consistent with this goal. In May 2016, the CPUC reported initial estimates of the impact of SB350, available here

In August 2019, the CPUC adopted updated 10-year efficiency goals for the state's major electric and gas IOUs. Over the first five years (2020-2025) targets translate to roughly 1.6% gross electric savings and 0.6% gross gas savings, including codes & standards supportive efforts (link).

Last reviewed: August 2020

Summary: Electric: Starting in 2019, savings targets for PSCo are raised from 400 GWh to 500 GWh per year, or roughly 1.7% of sales. Natural Gas: Savings targets commensurate with spending targets (at least 0.5% of prior year’s revenue).  There are no efficiency program requirements for municipal utilities or rural electric cooperatives.

HB 1227, signed in June 2017, extends electric efficiency programs to 2028 and requires the commission to set goals of at least 5% peak demand reduction and 5% energy savings by 2028 for demand-side management programs implemented during 2019 through 2028 when compared to 2018 baseline.

The Colorado legislature passed HB-07-1037 in April 2007, which amended Colorado statutes C.R.S. 40-1-102 and 40-3.2-101-105 by requiring the Colorado Public Utilities Commission (COPUC) to establish energy savings goals for investor-owned electric and gas utilities. The EERS statute does not set a fixed schedule of statewide percentages of energy savings to be achieved by particular years, nor does it require the acquisition of all cost-effective energy efficiency resources. Instead, it set an overall multi-year statewide savings goal for investor-owned electric utilities of at least 5% of the utility's retail sales (and a 5% peak demand reduction) relative to a 2006 baseline to be met by the end of 2018. HB 1227 (June 2017) extended programs to 2028, requiring the commission to set goals of at least 5% peak demand reduction and 5% energy savings by 2028 for demand-side management programs implemented during 2019 through 2028 compared to a 2018 baseline. The statute includes a similar goal for reduction of peak demand of 5% of the retail system peak in 2006. 

For investor-owned natural gas utilities, the EERS legislation structured the requirement in two parts. First, the natural gas IOUs must set DSM spending targets of more than 0.5% of revenues from customers in the prior year. Energy savings targets are then established by COPUC commensurate with spending and are stated in terms of quantity of gas saved per dollar of efficiency program spending.

COPUC has modified targets several times since 2008 (see Docket No. 07A-420E, Decision C08-0560, Docket No. 08A-518E, Decision No. R09-0542). In May 2011, COPUC approved new goals for Public Service Company of Colorado (PSCo) for the 2012-2020 period. The goals begin at 1.14% of sales in 2012, ramping up to 1.35% in 2015, and reaching 1.68% in 2020. The goals set out to achieve 3,984 GWh in the nine-year period (see Docket No. 10A-554EG, Decision No. C11-0442). The Commission ruled in Proceeding No. 17A-0462EG that PSCo's goal for annual energy savings for 2019-2023 be 500 GWh, an increase from the goal of 400 GWh that had been in effect.

Last Updated: July 2019

Summary: Requirement for acquisition of all cost-effective efficiency resources, equivalent to yearly incremental electricity savings targets of ~1.11% and natural gas savings of 0.59% through 2021. 

Established by Public Act 98-28, An Act Concerning Energy Independence, the state’s Renewable Portfolio Standard (RPS) requires that electricity providers and wholesale suppliers obtain 27% of their retail load from renewable energy and energy efficiency by 2020. In 2011, Public Act 11-80,  An Act Concerning the Establishment of the Department of Energy Environmental Protection and Planning for Connecticut’s Energy Future, created DEEP and laid the groundwork for pursuing all cost-effective energy efficiency across the state. Public Act 11-80 also required DEEP to issue a new and updated Comprehensive Energy Strategy plan for Connecticut every three years, which considers all energy needs of the state, including but not limited to: electricity, cooling, heating, and transportation. In February 2018,  DEEP issued the 2018 Comprehensive Energy Strategy to advance Connecticut's goal of creating a cheaper, cleaner, more reliable energy future for all the state's residents and businesses.

Through the 2019-2021 Conservation & Load Management Plan’s (2019-2021 Plan) energy efficiency programs, the utilities will help DEEP meet two strategies focused on energy efficiency in buildings: (1) ensure sustainable and equitable funding for efficiency, and (2) advance market transformation of the energy efficiency industry.  

For the 2019-2021 Plan, Connecticut’s utilities expect to achieve 843 annual GWH savings (1.11% of sales) and 2,073 annual MMcf savings (0.59% of sales), which is enough to power 100,000 homes for one year. These projected energy savings resulting from the 2019-2021 Plan’s programs shows how energy efficiency is a valuable resource for the state and will “flatten” electricity consumption in Connecticut over the next few years.

Last reviewed: August 2019

Summary: Delaware does not have a mandatory EERS. However, energy savings targets have been set by the Energy Efficiency Advisory Council (EEAC) and affected energy providers are currently working to meet these goals.

Established by SB 150, House Amendment 2 in 2014, the Delaware Energy Efficiency Advisory Council convened to establish guidance on cost-effective energy efficiency programs. The Delaware Energy Efficiency Advisory Council (EEAC) provides guidance to energy providers in developing energy efficiency, energy conservation, peak demand reduction, and emission-reducing fuel switching programs for all customer classes. The EEAC collaborates with the Public Service Commission (PSC) and Public Advocate (PA) to guide energy providers in establishing 3-year program  portfolios that must be approved by the PSC or other appropriate regulatory body.

The Act set up an eleven-member stakeholder workgroup to assist in developing key regulations, assessing the feasibility and impact of pursuing the established targets, reviewing progress annually, and recommending changes to the plan as needed. In its June 2011 report, the workgroup identified several issues that undercut the effectiveness of the policy. First, the level of proposed funding (gathered through an energy efficiency charge on customer bills) made it unlikely that the state would meet the targets established in the Energy Efficiency Resource Standards Act. Second, the workgroup found that conflicting state statutes muddied the institutional structure around efficiency program implementation and accountability, making it impossible to determine which entity (utilities, the Sustainable Energy Utility, or the Public Service Commission) has accountability for EERS performance results and the development of enforcement mechanisms.  

Given the lack of final implementation rules, and the funding and institutional challenges outlined above, Delaware's energy savings targets are considered voluntary.

Established by SB 150, House Amendment 2 in 2014, the EEAC convened to establish guidance on cost-effective energy efficiency programs. The EEAC has established voluntary energy savings targets (electric and gas), similar to the EERS. Utilities and program administrators are encouraged through the EEAC to develop and implement energy efficiency programs that will yield a reduction in electric and natural gas usage. Programs plans are designed around a 3-year timeframe but have the ability to be updated annually, with annual targets increasing each year to reach the cumulative 3-year goal. The incremental energy efficiency targets are incremental annual savings as a percent of forecasted sales: (2016/2017) E – 0.4% G – 0.2%; (2018) E – 0.7% G – 0.3%; (2019) E – 1.0% G – 0.5%. The EEAC approved the 2020-2022 energy savings goals in May 2020.  The EEAC has set one three-year, cumulative average goal for electric (0.7% of total electric sales) and gas (0.2% total gas sales) energy savings.

Last reviewed: September 2020

The Clean and Affordable Energy Act of 2008 (CAEA) requires the Mayor, through DOEE, to contract with a private entity to conduct sustainable energy programs on behalf of the District of Columbia. The CAEA authorizes the creation of a District of Columbia Sustainable Energy Utility (DCSEU) and designates the SEU to be the one-stop resource for energy efficiency and renewable energy services for District residents and businesses. The DCSEU operates under a performance-based contract with DOEE, with input and recommendations from the SEU Advisory Board, and oversight from the Council of the District of Columbia.

Laws allow for multi-year performance contracts, and as a result DCSEU will be able to operate on a multi-year contract with a 5-year base period and another 5-year extension period.  This contract has energy use reduction targets for electricity and natural gas. The target is 0.85% of 2009 electric and gas consumption in D.C. However, this goal is not mandatory and DCSEU earns performance compensation at levels below that.

In January 2019, Mayor Bowser signed the Clean Energy DC Omnibus Amendment Act of 2018 increasing the District's Renewable Portfolio Standard to 100% by 2032 and making significant improvements to the energy efficiency of existing buildings. The bill also tripled the Sustainable Energy Trust Fund (SETF) per therm assessment on natural gas (to $0.04515 per therm in 2020) and doubled the per kWh assessment on electricity (to $0.0029016 per kWh in 2020). Electricity from renewable sources covered by RECs under the RPS is exempt from the SETF. In 2020 and 2021, $15 million in SETF revenue will go to fund the Green Finance Authority (the Green Bank), decreasing to $10 million annually for 2022-2025. For 2020 and beyond, at least 20% of SETF funds generated by the increased assessment on natural gas will go specifically towards low-income residents (bill assistance, energy efficiency, weatherization, fuel-switching programs).

For more information on Energy Efficiency Resource Standards, click here.

Last reviewed: July 2019

Florida does not have an EERS.

The Florida Energy Efficiency and Conservation Act (FEECA -- Sections 366.80-85 and 403.519 of the Florida Statutes) established the authority for the Florida Public Service Commission to set targets for energy and peak demand savings and to require each affected utility to develop and implement energy efficiency programs. The Public Service Commission must revisit the goals at least every five years. Specific electricity and peak demand savings goals were set for each of the seven "FEECA utilities" in 2014 for 2015 through 2024, averaging 990.6 GWh annually. These goals are lower than those approved by the Commission in 2009. The Commission identified fewer programs as cost effective due to more stringent building codes and appliance efficiency standards, as well as lower avoided costs resulting from lower natural gas prices

In 2019, the Commission adopted the same goals approved by the Commission in 2014. The most recent status of Florida's Energy Efficiency and Conservation efforts for utilities under the Commission's oversight can be found in the Commission's January 2020 FEECA Report. A comprehensive description of the goal-setting process and methodology can be found in Order No. PSC-14-0696-FOF-EU. 

Last reviewed: June 2020

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: July 2018

Summary: Cumulative electricity savings of 4,300 GWh by 2030 (equal to approximately 30% of forecast electricity sales, or 1.4% annual savings).

Hawaii’s renewable portfolio standard (RPS) was codified in HRS §269-91, et seq. and amended in 2006, 2008, and 2009. The RPS requires investor-owned utilities and rural electric cooperative utilities to use “renewable electrical energy” to meet 10% of net electricity sales by the end of 2010, 15% by 2015, 25% by 2020, and 40% by 2030. Savings from energy efficiency programs and combined heat and power systems (among other measures) may count towards meeting up to 50% of the standard through 2014. The Public Utilities Commission may assess penalties against a utility for failing to meet the RPS, unless the failure was beyond the reasonable control of the utility.  

Beginning in 2015, electrical energy savings will no longer be able to count toward Hawaii’s RPS and will instead count towards Hawaii’s Energy Efficiency Portfolio Standard (EEPS), which was established in 2009 with the passage of HR 1464. Hawaii's EEPS sets a goal to reduce electricity consumption by 4,300 GWh by 2030 (equal to approximately 30% of forecast electricity sales, or 1.4% annual savings). Renewable displacement or offset technologies, including solar water heating and sea-water air-conditioning district cooling systems, count towards the EEPS after 2015.

The Public Utilities Commission (PUC) must establish interim goals to be achieved by 2015, 2020, and 2025, and may adjust the 2030 standard to maximize cost-effective energy efficiency programs and technologies. The PUC has yet to establish rules for the stand-alone EEPS, including eligible technologies; responsibility for doing so falls on the EEPS Technical Working Group established in 2012. Current energy efficiency targets in Hawaii are set in HI PUC Order, Docket No. 2010-0037 and are subject to revision.

Hawaii has no energy efficiency resource standard in place for natural gas due to the fact that natural gas plays only a minimal role in the state's overall energy portfolio.

Last Updated: August 2018

There is currently no EERS in place.  

For more information on Energy Efficiency Resource Standards, click here.

Last reviewed: July 2019

Summary: Electric: Vary by utility, averaging 1.77% of sales from 2018 to 2021, 2.08% from 2022 to 2025, and 2.05% from 2026 to 2030. Natural Gas: 8.5% cumulative savings by 2020 (0.2% incremental savings in 2011, ramping up to 1.5% in 2019). 

The scope of energy efficiency activity in Illinois began a dramatic expansion in July 2007 when the state legislature passed the Illinois Power Agency Act (IPAA), which includes requirements for energy efficiency and demand-response programs. The IPAA establishes an EERS that sets incremental annual electric and natural gas savings targets based on the previous year’s consumption, beginning on June 1 of that year (see § 220 ILCS 5/8-103). The electric savings requirement began at 0.2% in 2008 and ramped up to a requirement of 2% annual savings in 2015 and thereafter. The natural gas goals began in 2012 with a 0.2% reduction from 2011 sales and ramp up to 1.5% annual savings by 2019 (see Public Act 96-0033). However, due to a 2.0% rate impact cap, regulators had approved lower targets with incremental electric savings targets varying by utility from about 0.5% to 0.7% per year.

Future Energy Jobs Bill (SB 2814) was enacted into law as Public Act 99-0906 in December 2016 with an effective date of June 1, 2017. The legislation requires ComEd to achieve a cumulative 21.5% reduction and Ameren to achieve a 16% reduction in energy use by 2030, and also requires $25 million per year to be spent on programs to help low-income homes become more efficient. Goals are measured as the change in cumulative savings that consider both newly acquired savings as well as lost savings due to previously administered measures reaching the end of their Expected Measure Life.

Some of the provisions of the Act include adding 220 ILCS 5/8-103B to the Public Utilities Act. This Section shifts responsibility of the DCEO-administered electric efficiency programs to the various utilities. Public Act 99-0906 also revises the gas utility statute (220 ILCS 5/8-104) and assigns the gas utilities the responsibilities that were previously assigned to DCEO as well. Public Act 99-0906 also increases the cost cap (previously 2.0%) to 3.5% for the first four years, 3.75% for the four years that begin in 2022, and 4% for the five years that begin on January 1, 2026. For January 1, 2031 and beyond there is no reference to a cost cap. The new Act also eliminates the provisions for energy efficiency procurement by the Illinois Power Agency.

Last reviewed: July 2019

Although the state has implemented savings targets in the past, no EERS is currently in place.

Indiana’s Commission ordered all jurisdictional electric utilities to begin submitting three-year DSM plans in July 2010, indicating their proposals and projected progress in meeting yearly savings goals outlined by the Commission. The goals began at 0.3% incremental savings in 2010, increasing to 1.1% in 2014, and leveling at 2% in 2019. Load management and direct load control initiatives, including peak-shaving, that result in net-energy savings was counted towards the goal. 

The decision also outlined a portfolio of core programs, called Energizing Indiana, offered by all affected utilities. The statewide approach offered consumers a uniform set of energy efficiency programs, using coordinated marketing, outreach, and consumer education strategies. The programs included: residential lighting, home energy audits, low-income weatherization, energy-efficient schools, and commercial and industrial. Energizing Indiana was administered by a single independent, third-party entity, which was contracted by all of the utilities. Utilities were able to oversee additional programs.

In March 2014, the Indiana legislature voted to end Energizing Indiana programs, effectively eliminating the state's EERS. Governor Pence neither signed nor vetoed the bill, and it became law in April 2014. Governor Pence voiced his support for energy efficiency, directing legislators and regulators to consider new frameworks for energy efficiency in the future. The 2015 legislative session of the Indiana General Assembly resulted in SEA 412 (Senate Enrolled Act 412), signed into law by the Governor. SEA 412 requires a public utility to submit an integrated resource plan to the IURC. After 2017, the utilities will be required to seek approval of new energy efficiency plans at least once every three years. Indiana allows utilities to recover the cost of these programs through rates, although certain industrial customers can opt out based on their electric usage. SEA 412 also requires that EM&V procedures be included in an electricity supplier's energy efficiency plan. Additionally, SEA 412 provides that the IURC may not require a third-party administrator to implement an electricity supplier's energy efficiency program or plan.

The IURC is in the process of a rulemaking to update and revise the commission's administrative rules for integrated resource planning and DSM cost recovery.

Indiana Administrative Code provides guidelines for demand-side recovery electric utilities, as well as lost-revenue recovery and demand-side management incentives.

Last Updated: October 2018

Summary: For the 2019-2023 planning period, targets vary by utility, with average incremental electricity savings of 0.89% per year and natural gas savings between 0.10% and 0.29% of retail sales.   

For the 2019-2023 planning period IPL set incremental electric savings goals that average 0.77% of retail sales per year during the five-year period (See Docket No. EEP-2018-0003.) and MidAmerican set incremental electric savings goals that average 1% of retail sales.  (See Docket No. EEP-2018-0002.)

Iowa's rate-regulated natural gas utilities also set incremental energy savings goals for 2019-2023. IPL's goal averages 0.17% (See Docket No. EEP-2018-0003), MidAmerican's goal averages 0.26% (See Docket No. EEP-2018-0002), and Black Hills' goal averages 0.12% (See Docket No. EEP-2018-0004 and modification in EEP-2013-0001) of retail sales.

Last reviewed: July 2019

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: July 2015

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last reviewed: July 2019

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last reviewed: September 2020

Summary: Annual savings targets of ~2.3% for electric and 0.1% for natural gas for 2020-2022.

The Maine Public Utilities Commission (MPUC) approved the fourth Triennial Plan of Efficiency Maine, which develops, plans, coordinates, and implements energy efficiency programs in the state. The fourth Triennial Plan sets annual savings targets for 2020-2022 of 2.3% for electricity and 0.1% for natural gas, along with additional savings targets for other fuels.

The 10- and 20-year targets established by statute are far-reaching and were incorporated into the strategy and budgets of the Triennial Plan. Targets were revised in 2013, when Maine legislators overrode the governor’s veto to pass LD 1559. Targets include capturing all cost-effective energy efficiency (both electricity and natural gas); reducing electricity and natural gas consumption 20% by 2020; reducing oil heating use 20% in the same timeframe; and conducting weatherization of all homes for which homeowners are willing to share the costs of cost-effective weatherization to a minimum standard.

Last reviewed: July 2019

Summary: Beginning in 2016 and through 2023, utilities must ramp up programs by 0.2% per year, leveling out at 2% incremental savings per year as a percent of 2016 weather-normalized gross retail sales and electricity losses.

The EmPOWER Maryland Energy Efficiency Act of 2008 directed the Maryland Public Service Commission (PSC) to require electric utilities in the state to provide energy efficiency services to its customers to achieve 10% of the 15% per-capita electricity use reduction goal by 2015 calculated against a 2007 baseline (Order 82344). The 15% goal is equivalent to approximately 8,303 GWh. Utility programs must also achieve a reduction in per capita peak demand of at least 5% by end of 2011, 10%  by 2013, and 15% by 2015.

The Maryland Energy Administration (MEA) and other public and private stakeholders, including the Department of Housing and Community Development (excluding weatherization programs funded through the EmPOWER Maryland surcharge) aimed toward achieving the remaining 5% of the overall 2015 electricity savings, although no specific legal requirement exists.

Legislative goals ended in 2015. The goals were essentially achieved by the participating utilities with final achievement rates of 99% for the energy savings (MWh) goal and 100% for the peak demand savings (MW) goal. On a per capita basis, the Maryland electric utilities and cooperatives as a whole met the 10% reduction goal for energy use, but did not meet the 15% demand reduction goal, with 11% and 8% achieved respectively.

The PSC issued new EmPOWER targets with Order 87082 in July 2015. The order requires utilities to ultimately achieve savings of 2% per year by ramping up incremental savings at a rate of 0.2% per year beginning in 2016. This commitment was renewed during the 2017 legislative session with the passage of Senate Bill (“SB”) 184 / House Bill (“HB”) 514, which codified Commission Order No. 87082 regarding post-2015 electric energy efficiency goals. Work groups were established by Order 87082 to determine natural gas goals and limited income goals. The proposals were filed in February 2018 and will be discussed at the semi-annual hearings in May 2018.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: June 2018

Summary: Electric: Yearly incremental savings targets began at 1.4% in 2010, ramping up to 3.18% in 2017. Current 2019-2021 targets set at ~2.7% of retail sales. Natural Gas: Targets began at 0.63% in 2010, ramping up to 1.20% in 2017. Current 2019-2021 targets set at 1.25% of retail sales.

 The Green Communities Act requires that electric and gas utilities procure all cost-effective energy efficiency before more expensive supply resources, requiring a three-year planning cycle. In January 2019, the DPU approved the fourth 3-year (2019-2021) electric and gas energy efficiency plans under the Green Communities Act, continuing the state’s progress toward the most ambitious energy savings targets in the country. The first electric efficiency procurement plan called for incremental savings 1.0% in 2009, 1.4% in 2010, 2.0% in 2011, and 2.4% in 2012. The state's fourth three-year plan calls for savings to average 2.7% of annual sales. The energy efficiency investments in 2019-2021 are expected to save 3,461 annual GWh of electricity by 2021. The statewide totals are comprised of individual program administrator savings.

The state's natural gas plan will save 95.9 MMTherms over the 2019 to 2021 plan period (equivalent to 1.2% of sales).

Overall, the fully funded 2019-2021 electric and natural gas efficiency procurement plans will yield net consumer benefits of nearly $8.56 billion.

Last reviewed: August 2020

Summary: Electric targets set at 1% annual incremental savings. Natural Gas goals require 0.75% annual incremental savings. Targets terminate in 2021 for non-rate regulated utilities, representing approximately 10% of Michigan's electric load. It should be noted utility financial incentives under PA 342 have spurred utilities to pursue upwards of 1.5% annual electric savings. And recent IRPs approved for Consumers and DTE call for 2% savings for 2021 and beyond.

Michigan adopted an EERS in October 2008, when the Clean, Renewable, and Efficient Energy Act was signed into law, requiring all electric and natural gas utilities to provide energy waste reduction programs. PA 295 required electric utilities to achieve 0.3% savings in 2009; 0.5% in 2010; 0.75% in 2011; and 1.0% in each year from 2012 to 2015. Targets continued each year thereafter at 1% incremental electricity savings relative to the prior year’s total retail electricity sales. Targets for natural gas utilities started in 2009 at 0.1% savings as a percent of annual retail natural gas sales, eventually ramping up to 0.75% in each year from 2012 to 2015. PA 342, passed in December 2016, maintains the 1.0% (electric) and 0.75% (gas) targets in perpetuity for most utilities, except for non-rate regulated utilities for which targets extend through 2021. An earlier 2% spending cap for electric and natural gas utilities was also removed by the legislation.

Each MWh of savings achieved by a utility in a given year qualifies for one energy waste reduction credit. Excess credits can be "banked", i.e., can be used to meet up to one-third of the required energy savings in the year following the year in which they were achieved. Excess credits cannot be banked if a utility has opted to receive incentive payments for exceeding its savings targets in a particular year.

Regulated investor-owned utilities are responsible for 88.9% of the statewide electric savings targets; municipal utilities represent 7.8% of savings; and electric cooperatives, 3.4%. Most efficiency programs are administered by the utilities, although some have opted to fund a state-selected program administrator, Efficiency United, through an alternative compliance payment mechanism specified in Act 295. Although Efficiency United program services are not subject to the statutory savings targets, equivalent contractual targets were imposed by the Commission. Large electric customers, as determined by their peak use, may administer their own programs.

Last reviewed: August 2020

Summary: Electric and Natural Gas: 1.5% incremental savings each year beginning in 2010, adjustable to a minimum of 1% savings.

Minnesota investor-owned electric and gas utilities are subject to the energy savings requirements of the Next Generation Energy Act (NGEA), passed by the Minnesota Legislature in 2007 (Minnesota Statutes 2008 § 216B.241). Among its provisions, the Act set incremental energy-saving goals for utilities of 1.5% of retail sales annually, commencing with the first triennial plan period that began January 1, 2010. Of the 1.5%, the first 1% must be met with direct energy efficiency energy savings, or conservation improvements. This may include savings from efficiency measures installed at a utility’s own facilities. The NGEA also allows savings to be achieved indirectly through energy codes and appliance standards. Up to 0.5% may be met by efficiency enhancements to each utility’s generation, transmission, and distribution infrastructure.

All electric and natural gas utilities, including municipal utilities and co-operatives, must set energy efficiency spending goals based on a percentage of revenue. Prior to the Next Generation Energy Act going into effect fully in 2010, Minnesota utilities were required to spend a percentage of gross operating revenue (0.5% gas, 1.5% electric, 2% for Xcel Energy's electric utility) on energy efficiency programs rather than to achieve a set amount of energy savings. In practice, however, these minimum spending requirements are often irrelevant, as utilities must spend more than these minimum percentages to achieve the 1.5% EERS.

The NGEA allows a utility to request a lower target (based on historical experience, an energy conservation potential study, and other factors), but for investor-owned utilities that target can be no lower than 1% per year. Lower savings can also be justified if the Commissioner of Commerce determines that additional savings are not cost-effective to ratepayers, the utility, participants, and society. In 2009, the state legislature passed interim legislation to reduce the mandated level of savings during the first three years for natural gas utilities, establishing an interim average annual savings goal of 0.75% over 2010-2012 for utilities that submit a “ramp up” plan that averages annual savings of 1% in subsequent years (Minnesota Session Laws 2009, Ch. 110, Sec. 32).

Last reviewed: September 2020

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last reviewed: July 2020

Missouri has only voluntary goals for electric utilities to help the Commission review progress toward an expectation that the utility can achieve a goal of all cost effective demand-side savings including: a) incremental annual energy and demand savings in 4 CSR 240-20.094(2), and b) cumulative annual energy and demand savings in 4 CSR 240-20.094(2)(B), e.g., 0.3% incremental annual energy savings in 2012, ramping up annually to 0.9% in 2015 and 1.7% in 2019 for cumulative annual energy savings of 9.9% by 2020. The voluntary goals are not mandatory, and no penalty or adverse consequence will accrue to a utility that is unable to achieve the annual energy and demand savings goals.

Last reviewed: July 2019

There is currently no EERS in place. 

For more information on Energy Efficiency Resource Standards, click here.

Last reviewed: July 2020

There is currently no EERS in place. Each of the state's major public power utilities have self-imposed energy efficiency targets, including Omaha Public Power District, Nebraska Public Power District, and Lincoln Electric System.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: July 2017

Summary: 25% renewable energy by 2025—energy efficiency may currently meet 20% of the standard in any given year, but phases out of the RPS over time.

In 1997, Nevada established a renewable portfolio standard (RPS) as part of its restructuring legislation. Assembly Bill (AB) 3 in 2005 revised the RPS, increasing the portfolio requirement to 20% by 2015 and allowing utilities to use energy efficiency to help meet the requirements. Amendments in Senate Bill 358 in 2009 raised the portfolio requirement to 25% by 2025. Energy efficiency measures qualify if they are subsidized by the electric utility, reduce demand (as opposed to shifting peak demand to off-peak hours), and are implemented or sited at a retail customer’s location after January 1, 2005. AB1 of 2007 expanded the definition of efficiency resources to include district heating systems powered by geothermal hot water. For years 2015 to 2019 not more than 20 percent of the RPS can be met utilizing energy efficiency. This amount drops to 10 percent for calendar years 2020 to 2024 before reducing to zero for 2025.

The Public Utilities Commission of Nevada (PUCN) established a program to allow energy providers to buy and sell portfolio energy credits (PECs) in order to meet energy portfolio requirements. The number of kWh saved by energy efficiency measures is multiplied by 1.05 to determine the number of PECs. For electricity saved during peak periods as a result of efficiency measures, the credit multiplier is increased to 2.0. PECs are valid for a period of four years. The PUCN currently has an open rulemaking regarding the annual savings goals in Docket Nos. 17-07011 and 17-08023.

In 2013, the legislature voted to phase out this energy efficiency allowance in order to effectively increase the requirement for new renewable energy.  

In June 2017, SB 150 was signed into law directing the PUCN to establish annual energy savings goals for NV Energy and to establish performance-based incentives that an electric utility can recover if it exceeds those goals.

Nevada has no natural gas EERS.

Last Updated: July 2018

Summary: Incremental electric savings of 0.8% in 2018, ramping up to 1.0% in 2019, and 1.3% in 2020. Natural gas savings of 0.7% in 2018, 0.75% in 2019, and 0.8% in 2020.

The Commission approved the implementation of an EERS for 2018-2020 for the state’s gas and electric utilities in EERS Order No. 26-095 on January 2, 2018.

Commission Authorization: In August 2016, the New Hampshire Public Utilities Commission approved an EERS to help the state achieve the objectives set out in its 10-year State Energy Strategy. Commission-approved energy efficiency programs will be implemented in accordance with this framework beginning January 1, 2018. The EERS has an overarching goal of achieving all cost-effective energy efficiency, which it hopes to achieve incrementally through a framework of three-year planning periods. During the first three-year period, the cumulative goal for electric savings will be 3.1% of delivered 2014 kWh sales, with interim annual savings goals of 0.80%, 1.0%, and 1.3%. The cumulative goal for gas savings will be 2.25% of delivered MMBtu 2014 sales, with interim annual savings goals of 0.70%, 0.75%, and 0.80%. Funding for the EERS will come from increases to the system benefits charge (SBC) and the local distribution adjustment charge (LDAC), both current components of electric and gas bills, respectively.

Legislative Mandates: The New Hampshire Senate passed HB 1129 in 2014, calling for the development of long term goals that take into account and complement any goals developed by the New Hampshire Public Utilities Commission. In February 2015, NHPUC staff issued a straw proposal for an EERS for the period 2015-2025. For electricity savings, staff assumed a gradual increase in savings from 2015 to 2025 and determined total savings of about 9.76% of 2012 kWh electrical usage were attainable over the period.

In December 2015, testimony was filed proposing frameworks and general terms for the implementation of an EERS in New Hampshire. A Settlement Agreement, including the establishment of an EERS, was approved by the Commission in Order No. 25,932 in August 2016. 

For more information on Energy Efficiency Resource Standards, click here.

Last reviewed: July 2019

In May 2018, New Jersey adopted an EERS when the governor signed clean energy bill A3723, which requires that electric and gas utilities achieve a minimum of 2% electric and 0.75% annual gas savings of the average annual usage in the prior three years, within five years of implementation of their energy efficiency and peak demand reduction programs, and until such time as all cost-effective energy efficiency is achieved in each utility territory.

The Board of Public Utilities has adopted utility and state savings targets and quantitative performance indicators (QPIs) based on the 2019 NJ Market Potential Study in transitioning to this new EE framework, slated to begin by July 1, 2021. The utility savings goals, based on the study, are 2.15% for electric 1.10% for gas savings. The Board has established a triennial review process ahead of each utility filing cycle, which will review and establish for the next five program years: targets for utility and state annual energy use reductions, metrics, weighing structure of metrics, cost recovery mechanisms, performance incentive and penalty structure, cost to achieve ranges, and program administration and design. 

Last reviewed: June 2020

Summary: 5% reduction from 2005 total retail electricity sales by 2014, and an 8% reduction by 2020. HB 291 calls for a further 5% reduction from 2020 total retail electricity sales for programs implemented from years 2021 to 2025

In 2008, New Mexico legislature passed HB 305, which amended the Efficient Use of Energy Act (first passed in 2005) and established energy efficiency targets for the state. The 2008 law required investor-owned utilities to achieve a 5% reduction from 2005 total retail electricity sales by 2014 and a 10% reduction by 2020 (see NM Stat. § 62-17-1 et seq.).

The state’s targets were amended in 2013 with the passage of HB 267. The law established a fixed tariff rider for funding energy efficiency and load management programs. The bill was a compromise among energy efficiency advocates, New Mexico’s utilities, and representatives of the Public Regulation Commission, and preserved the targets but reduced the energy savings requirement in 2020 for electric utilities from 10% to 8% of sales.

In early 2019, the New Mexico legislature passed HB 291, requires efficiency programs by public utilities to achieve savings no less than 5% of 2020 total retail kWh sales from programs implemented in years 2021 through 2025. Also, no later than June 30, 2025, the commission shall adopt, through HB 291 rulemaking, energy savings targets for electric utilities for years 2026 through 2030 based on cost-effective and achievable energy savings and provide utility incentives based on savings achieved.

Distribution cooperative utilities, which are not fully regulated by the PRC, must annually consider self-imposed electricity reduction targets and design demand-side management programs to enable them to meet those targets. Each cooperative utility must submit a report to the PRC annually describing their demand-side management efforts from the previous year.

New Mexico has no natural gas EERS.

Last reviewed: July 2019

Summary: New York State has established a 2025 target to achieve 185 Tbtu savings (see New Efficiency, New York report), with 2025 utility targets ramping up to 3% of incremental electric sales and 1.3% for natural gas (January 2020 Order).

In 2008, the New York State Public Service Commission established the New York Energy Efficiency Portfolio Standard (EEPS) proceeding. As part of a statewide program to reduce electricity usage by 15% of the forecast levels by the year 2015 (with comparable results in natural gas conservation), the PSC established interim targets and funding through the year 2011. The PSC required utilities to file energy efficiency programs, and NYSERDA, as well as independent parties, were invited to submit energy efficiency program proposals for Commission approval. In 2011, the Commission reauthorized a majority of the EEPS programs for the 4-year period ending December 31, 2015, with revised targets and budgets where appropriate. NYSERDA was authorized to operate a limited number of programs through December 31, 2018. Additionally, three gas efficiency programs run by National Fuel Gas Corporation pursuant to its rate cases were consolidated into the EEPS program.

In 2014, New York initiated a proceeding, Case 14-M-0101, "Reforming the Energy Vision," to further discuss the state's energy efficiency resource standard, along with other major elements of the state's utility regulatory structure.  In February 2015, the Commission issued an order in Case 14-M-0101 that, among other things, established a new framework for post-2015 electric energy efficiency programs. A similar framework is expected to be established for gas energy efficiency programs—a Notice of Proposed Rulemaking was published in the NYS Register on April 15, 2015. A new case, 15-M-0252, was established for the utilities post-2015 energy efficiency programs.

In January 2016, the PSC authorized NYSERDA's Clean Energy Fund (CEF) framework, which outlines a minimum 10-year energy efficiency goal of 10.6 million MWh measured in cumulative first-year savings.  Explicit energy efficiency budgets and targets for 2016 were also established, along with an annual process whereby utilities would propose post-2016 energy efficiency budgets and targets for approval. This included the filing of Energy Efficiency Transition Implementation Plans (ETIPs), to address the energy efficiency efforts specifically associated with proposed budgets and targets. In 2017, NYS utilities began transitioning from energy efficiency programs being funded through a surcharge to a more integrated approach with costs recovered through rates like other ordinary components of the revenue requirement.

In April 2018, DPS and NYSERDA issued a white paper, New Efficiency: New York, which established a statewide all-fuels target of 185 TBtu cumulative annual site energy savings for 2015-2025, relative to forecasted site energy consumption in 2025.  The white paper also provided a number of strategies the state could pursue in order to achieve the goal.

In December 2018, the PSC approved new energy efficiency targets for investor-owned utilities for 2019 and 2020 and adopted an overall increase in the energy savings goal to be achieved across the investor-owned utilities through 2025; this action more than doubled utility energy efficiency savings targets over the 2019-2025 period relative to sustaining historic (2017) targets. The overall goal established in the December 2018 PSC Order was inclusive of a subsidiary target to reach an annual three percent reduction in electricity sales by 2025, and of a minimum 5 TBtu subtarget for savings from the installation of heat pumps. Twenty percent of the additional levels of energy efficiency investment are to be dedicated to low- and moderate-income households. In April 2019, the NY Utilities filed a report with their own proposal for the increased 2021 through 2025 targets for each utility.

In January 2020, the PSC authorized annual incremental utility-specific budgets and savings targets for electric, gas and heat pump portfolios.  These targets ramp to a statewide EE savings as a percentage of sales metric of 3.0% for electric in 2025, and 1.3% for gas in 2025.

Last Updated: August 2020

Summary: Renewable Energy and Energy Efficiency Portfolio Standard (REPS): 12.5% by 2021 and thereafter. Energy efficiency is capped at 25% of the 2012-2018 targets and at 40% of the 2021 target.

North Carolina Senate Bill 3 was finalized in 2008, introducing the state’s combined Renewable Energy and Energy Efficiency Portfolio Standard (REPS). Under REPS, public electric utilities in the state must obtain renewable energy power and energy efficiency savings of 3% of prior-year electricity sales in 2012, 6% in 2015, 10% in 2018, and 12.5% in 2021 and thereafter. For IOUs, energy efficiency is capped at 25% of the 2012-2018 targets and at 40% of the 2021 target. Co-operative and municipal utilities may satisfy all of their REPS requirement of 10% savings by 2018 with energy efficiency, excluding small set-asides for solar and other resources. Utilities demonstrate compliance by procuring renewable energy credits (RECs) earned after January 1, 2008. Under North Carolina Utility Commission rules, an REC is equivalent to 1 MWh of electricity generated by a renewable energy facility or avoided through an efficiency measure.

Since the REPS goals are cumulative, the 12.5% target in 2021 requires 5% of its sales in 2021 to be met with energy efficiency over the entire 13-year period in which energy efficiency savings may be counted. Averaged over three years, each target period until 2018 requires yearly incremental savings of 0.25%. The final period from 2018 to 2020 will allow yearly incremental energy savings of 0.83%. Utilities plan to employ more than the full quarter allowable over the next ten years. Industrial customers may opt-out of utility energy efficiency programs and not bear the costs of new programs if they implement their own programs. 

Each electric power supplier must file a REPS compliance plan for Commission review as part of its Integrated Resource Planning (IRP) filing on or before September 1 of each year. A utility’s IRP filing must include a comprehensive analysis of all resource options considered by the utility, including demand-side management and energy efficiency, which must result in “the least cost mix of generation and demand reduction measures achievable….”(N.C. Gen. Stat. §62-2(3a)). According to Commission Rule R8-60, IRP filings must include a 15-year forecast of demand-side resources, among other requirements for the assessment and characterization of the demand-side resource.

North Carolina has no natural gas EERS.

Last reviewed: July 2019

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: July 2017

HB 6 (2019) effectively terminated the state’s previously enacted EERS, which had been in place since 2008. Specifically, HB 6 lowered the state’s efficiency standard from 22% to 17.5% cumulative energy savings―a goal utilities anticipate surpassing in 2020―and allows utilities to count their savings collectively. Given the bill prohibits PUCO from approving a cost recovery mechanism after the 17.5% target is reached, programs are scheduled to be discontinued at the close of 2020.

Before it's dismantling under HB 6, Ohio’s previous EERS had been enacted under Senate Bill 221 in 2008 and included both an Energy Efficiency Portfolio Standard (EEPS) and Alternative Energy Portfolio Standard (RPS), among other provisions. For efficiency, the law required a gradual ramp up to a cumulative 22% reduction in electricity use by 2025. Beginning in 2009, the Act required investor-owned utilities and retail suppliers to implement energy efficiency programs that achieve energy savings equal 0.3% of sales, ramping up to 1% in 2014, and 2% in 2021. The baseline for which energy savings were calculated against is the average number of total kilowatt hours sold by electric distribution utilities during the preceding three years. Ohio’s EEPS also included peak demand reduction targets of 0.75% annually through 2018.

Last Updated: May 2020

There is currently no EERS in place. 

For more information on Energy Efficiency Resource Standards, click here.

Last reviewed: July 2020

Summary: Electric- Incremental targets average ~1.3% (gross) of sales annually for the period 2020–2021. Natural gas: ~0.5% of sales annually for 2020–2021.

SB 1157 (2016) directs electric utilities to plan for and pursue all cost-effective energy efficiency. ETO's 2021 Action Plan can be found here.

Annual goals for Energy Trust reflect an increment in their Strategic Plan goal. These annual goals are codified by the OPUC and then incorporated into each utilities’ Integrated Resource Plan (IRP), along with a 20-year forecast of achievable, technical energy efficiency potential. In this sense, Energy Trust’s IRP goals represent a minimum resource standard and energy efficiency savings supplied by Energy Trust function as a resource supplied each year to the utilities to meet their IRP goals. Goals include savings from NEEA programs.

Last reviewed: June 2020

Electric: Varying targets have been set for IOUs amounting to yearly statewide incremental savings of 0.8% savings for 2016-2020. EERS includes peak demand targets. Energy efficiency measures may not exceed an established cost-cap.

On June 11, 2015, the Commission adopted additional incremental reductions in consumption for a Phase III of the Act 129 Energy Efficiency and Conservation Program. Phase III began on June 1, 2016, and will end on May 31, 2021. Phase III requires a cumulative average savings of approximately 3.7% (range of 2.6% to 5.0%) from energy efficiency and also includes a DR requirement with average annual savings of 425 MW. (See pages 35 and 57 of the implementation order, Docket #M 2014-2424864, for details on DR and EE, respectively).

Pennsylvania has no natural gas EERS although three natural gas distribution companies have submitted voluntary Energy Efficiency & Conservation (EE&C) plans.

Last reviewed: June 2020

Summary: Electric: 1.7% in 2012 ramping up to 2.6% by 2017. Current 2018-2020 targets average 2.5% of retail sales. Natural Gas: ~0.4% of sales in 2011 ramping up to 1.1% in 2017. Current 2018-2020 targets average 0.97% of retail sales.

The Rhode Island legislature unanimously passed the Comprehensive Energy Conservation, Efficiency and Affordability Act of 2006 in June 2006. This act establishes a Least Cost Procurement mandate, requiring utilities to acquire all cost-effective energy efficiency with input and review from the Energy Efficiency and Resource Management Council (EERMC). Under the Least Cost Procurement mandate, National Grid is required to participate in strategic long-term planning and invest in all energy efficiency that is cost-effective and cheaper than supply on behalf of its customers.

The act also established requirements for strategic long-term planning and purchasing of least-cost supply and demand resources. Utilities must submit 3-year and annual energy efficiency procurement plans, which offer program details, as well as spending and savings goals. Hearings are held once a year before the Rhode Island Public Utilities Commission to review program plans. Yearly incremental savings goals for electricity during the 2012-2014 period began at 1.7%, increasing to 2.5% in 2014 (Docket 4284, 4295). Targets for 2015-2017 ranged from 2.5% to 2.6%; 2.5% for 2018-2021 (Docket 4443).

Rhode Island’s EERS policy also includes natural gas targets. Savings goals for the 2012-2014 period ranged from 0.6% in 2012 to 1.0% in 2014 (Docket 4284, 4295). Targets for 2015-2017 ranged from 1% to 1.1%; ~0.97% for 2018-2020 (Docket 4443).

Last reviewed: July 2019

There is currently no EERS in place.  

Last Updated: June 2020

There is currently no EERS in place.

Utilities may voluntarily participate in the state's Renewable, Recycled, and Conserved Energy Objective (ARSD 20:10:38). Energy efficiency counts toward this objective.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: July 2018

The Tennessee Valley Authority (TVA) stated in its 2008 Environmental Policy that in order to meet its objective of reducing the rate of carbon emissions, it needed to reduce load growth by at least one-quarter over five years through energy efficiency and demand-side initiatives.

In its 2011 integrated resource plan, TVA included savings goals from energy efficiency and demand-response in its recommended planning direction. The goals included reductions in peak demand of 3,600-5,100 MW and energy savings of 11,400-14,400 GWh to be met by the year 2020. These ranges include savings already achieved through 2010, when the planning process began. The degree to which these goals are binding in the long term is unclear and therefore is not considered an EERS. 

Last Updated: July 2018

Summary: 20% Incremental Load Growth in 2011 (equivalent to ~0.10% incremental savings per year); 25% in 2012, 30% in 2013. After 2013, the goal metric is shifting to 0.4% of peak.

In 1999, Texas became the first state to establish an energy efficiency resource standard, requiring electric utilities to offset 10% of load growth through end-use energy efficiency (Texas Senate Bill 7). Demand growth is the average growth of the five previous weather-adjusted peak demands for each utility. In 2007, after several years of meeting this goal at low costs, the legislature increased the standard to 15% of load growth by December 31, 2008, and 20% of load growth by December 31, 2009 (Texas House Bill 3693).  The legislation also required utilities to submit energy savings goals. The Public Utility Commission of Texas (PUCT) approved these rules in March 2008.

While the 2007 legislation required utilities to submit GWh savings goals to ensure they did not overly focus on load management, the PUCT determined that utilities could convert their demand savings goals into corresponding energy savings goals. In practice, however, the energy savings (MWh) resulting from Texas utility demand-response and energy efficiency programs are about twice the amount of the energy saving goals.

In 2010, the PUCT approved Substantive Rule § 25.181, which increased the goals from 20% of electric demand growth to 25% growth in demand in 2012 and 30% in 2013. The rule also established customer cost caps to limit efficiency expenditures. The cost caps may not affect every utility, but some have already hit the caps, which are inhibiting investment in cost-effective energy efficiency programs.

In the 2011 legislative session, Texas adopted Senate Bill 1125, which amends the EERS policy by requiring utilities to eventually achieve savings of 0.4% of each company’s peak demand. As a result, utilities with rapidly growing load growth will have more predictable and consistent goals than those that were set based on load growth. The Bill also added focus on reducing demand in the winter. The Bill does not remove the cost caps adopted in 2010.

Texas has no natural gas EERS.

Last Updated: July 2017

In 2008, Utah adopted a renewable portfolio standard (RPS) of 20% by 2025, subject to cost-effectiveness, that allows energy savings from DSM measures to qualify towards the standard without any cap.

Last reviewed: July 2019

Summary: Electric - Annual incremental savings totaling 357,400 MWh over 2018-2020, or approximately 2.4% of annual sales. Natural gas - Three-year annual incremental savings of 192,599 Mcf spanning 2018-2020, or 0.5% of sales.

Vermont does not have traditional EERS legislation with a set schedule of energy-savings percentages for each year. Instead, Vermont law requires EEU budgets to be set at a level that would realize "all reasonably available, cost-effective energy efficiency." Compensation and specific energy-savings levels—not “soft” goals or targets—are determined by the PUC every three years in a Demand Resource Plan proceeding. There is not an explicit penalty for non-performance. However, a portion of the compensation Vermont pays the Vermont Energy Investment Corporation (VEIC) parent company that oversees Efficiency Vermont as the program administrator is contingent on meeting stated goals, subject to a monitoring and verification process. If the administrator does not meet stated goals, the state will withhold compensation, and the administrator potentially will be replaced at the end of the three-year period (DSIRE 2011).

The goal-setting process has changed due to Vermont’s “order of appointment” franchise-like structure. Every three years, a “demand resources plan” proceeding will be held. The proceeding will set budgets and goals for the next 20 years, coinciding with the long-range transmission plan to allow for integration of forecasting (EEU Structure Docket 7466).

Every 6 years there is a performance review for the three EEUs to determine if each appointment should be extended for an additional 6 years.

In addition to the EEU Structure the state’s 2015 Renewable Energy Standard (Act 56) required DUs to addresses building electrification as well as fossil fuel use reduction and is comprised of three components or tiers. While Tier I and II of the RPS address renewable energy requirements, Tier III requires distribution utilities (DUs) to reduce customers’ fossil fuel use through either electrification, efficiency, fuel switching, or storage. This requirement is 2% of a DU’s annual sales starting in 2017 and increasing by 0.67% annually, reaching 12% in 2032.  This program works in conjunction with the traditional EEU programs to deliver benefits to Vermont’s ratepayers. This program operated under Vermont’s administrative rule 4.400.

June 2020

Summary: Electric: The 2020 VCEA requires Dominion Energy to achieve 5% energy savings by 2025 relative to a 2019 baseline. ApCo must achieve 2% by 2025, relative to a 2019 baseline. Statewide these goals translate to average incremental annual savings of approximately 1.2% over four years.

Virginia passed its first mandatory EERS in 2020, replacing earlier voluntary goals. In March 2007, the Virginia legislature passed a bill amending Virginia’s earlier electric industry restructuring law. The governor approved the bill conditionally, requiring the addition of a section on energy conservation, including a goal of 10% electricity savings by 2022 (calculated relative to 2006 sales). The legislature accepted this condition. In 2015, Governor McAuliffe announced a revised goal of 10% electricity savings by 2020. However, a lack of regulatory requirements meant these energy savings goals were considered voluntary.

In April 2020, Governor Northam signed the Virginia Clean Economy Act, establishing an EERS for investor-owned utilities as part of the bill’s goal of reaching 100% clean energy by 2050.

The EERS requires that in 2025, Dominion must save electricity equivalent to at least 5% (relative to 2019 sales) via efficiency measures implemented that year plus ongoing savings from measures implemented in previous years that are still saving energy. Appalachian Power Company must achieve 2% electricity savings by 2025. Statewide it’s estimated these goals translate to incremental annual savings targets of about 1.2% per year, avoiding more than 7 million metric tons of greenhouse gas emissions over four years and continuing to reduce emissions as measures continue to save energy.

The bill also sets up a process to strengthen the EERS after 2025. After that year, the State Corporation Commission will adjust energy efficiency targets every three years. Utilities will also have to prove they are hitting those targets before they are permitted to build new fossil fuel plants.

Last Updated: April 2020

Summary: Utilities set biennial targets to achieve all cost-effective electricity conservation. Electric: Targets average ~0.9% incremental electricity savings per year. Natural gas: HB 1257 (2019) establishes an all cost-effective EERS for natural gas. Specific targets are pending.

Washington voters approved ballot initiative 937, the Energy Independence Act, in November 2006, which set new renewable energy resource and conservation requirements for large electric utilities to meet. The law, codified in Chapter 19.285 RCW, had rules adopted for its implementation in 2007 and 2008 (WAC 480-109WAC 194-37). The energy conservation section requires each qualifying utility (those with more than 25,000 customers in Washington) to “pursue all available conservation that is cost-effective, reliable and feasible.” Seventeen utilities, both publicly-owned and investor-owned, currently meet the definition of qualifying utility.

The law requires utilities to use methodologies consistent with the Northwest Power and Conservation Council’s (NPCC) to determine their achievable ten-year cost-effective conservation potential and update that potential assessment every two years. Utilities also must establish a biennial acquisition target beginning in 2010-2011 and update that target every two years. If a utility does not meet its conservation goals, it must pay an administrative fine for each MWh of shortfall, starting at $50 and adjusting annually for inflation beginning in 2007.

HB 1257 (2019) establishes a natural gas conservation standard requiring each gas company to acquire all conservation measures that are available and cost-effective. Each company must establish an acquisition target every two years, with initial targets taking effect by 2022.

Last reviewed: July 2019

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last reviewed: July 2019

Summary: Electric: ~0.6-0.7% of sales in 2019-2022. Natural Gas: 0.6% of sales in 2019-2022.

2005 Wisconsin Act 141 directs the Public Service Commission to establish energy efficiency and renewable goals and measureable targets at least every four years. The PSCW issued its final order of the Quadrennial Planning Process on November 10, 2010, which adopted electricity and natural gas savings goals for Focus on Energy. The electricity goals, as a percent of peak load and electric sales, amounted to 0.75% in 2011, ramping up to 1.5% in 2014. The PSC also approved natural gas goals of 0.5% in 2011, ramping up to 1% in 2013.

Shortly after the EERS was approved by the Joint Finance Committee of the state legislature, the state limited funding to Focus on Energy to 1.2% of revenues, which resulted in a major reduction in energy efficiency goals.

The Commission in May 2018 set four-year savings goals for the 2019-2022 period, which were guided by the findings of Focus' 2017 potential study regarding total achievable potential available at Focus' $100 million annual funding level. All goals are now set in lifecycle terms, rather than the annual terms the Commission previously used. The minimum electric net life cycle savings target is 22,832 GWh for 2019-2022 or 1,840 GWh first-year savings across 2019- 2022, translating to roughly ~0.6-0.7% of sales per year. The minimum net life cycle natural gas savings goal is 1,243 MMTherms for measures implemented in 2019-2022, or 95.9 MMTherms of first-year savings, equating to approximately 0.6% savings as a percent of sales on a net basis.

Last reviewed: June 2020

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here

Last Updated: July 2016