Local Government Summary

State governments can advance policies and programs that impact many sectors. These initiatives complement the existing landscape of utility programs, leveraging resources from the state’s public and private sectors to generate energy and cost savings that benefit consumers. State governments can work directly with local citizens, spurring investments in energy efficiency by offering financial incentives. State financial incentives are an important instrument for increasing the use of energy efficient technologies that provide benefits to both residents and the state overall. The incorporation of a financial incentive can make energy efficiency investments more alluring for private and public entities, particularly by lowering inhibitive upfront costs. Financial incentives also complement other efficiency policies such as appliance standards and energy codes, overcoming market barriers for cost-effective technologies.

A state’s own facilities, fleets, and operations also offer a unique opportunity for state governments to lead by example, incorporating energy efficiency measures into their facilities and achieving significant energy cost savings. State governments have often become leaders in energy efficiency by taking action through legislation or executive order to improve efficiency in their own buildings and vehicles. These policies help improve the environmental and economic performance of states’ assets while promoting energy conservation to the broader public.