May 17, 2006—An Energy Efficiency Resource Standard (EERS) could save as much energy as improving US vehicles’ fuel economy to 40 mpg, and would triple the energy efficiency savings of the Energy Policy Act of 2005, according to a report issued by the American Council for an Energy-Efficient Economy (ACEEE).
The report, Energy Efficiency Resource Standards: Experience and Recommendations, profiles energy efficiency resource standard policies in ten states and four European countries, and concludes that implementation of similar policies at the federal or state level could reduce nationwide energy use by nearly 5% in 2020 and save consumers and businesses about $170 billion from efficiency measures implemented over the 2007-2020 period.
According to the report, an EERS consists of electric and/or gas energy savings targets for utilities, with flexibility to achieve the target through a market-based trading system. EERS targets are achieved through end-user energy-saving improvements, aided and documented by utilities or other program operators. Distribution system efficiency improvements, combined heat and power (CHP) systems, and other high-efficiency distributed generation systems may be included as well.
To date, EERS programs are most commonly implemented at the state level but can also be implemented over smaller or wider areas. EERS-like programs are now in operation in several states, including Texas, Hawaii, Nevada, Connecticut, California, Vermont, Pennsylvania, and Colorado. Illinois and New Jersey are planning to implement EERS programs soon.
ACEEE recommends that both state governments and the federal government enact EERS policies covering both electric and gas utilities. At the state level, an EERS can generally be established by a state legislature or by its utility commission. At the federal level, an act of Congress will be required.
Energy Efficiency Resource Standards: Experience and Recommendations is available for free download from ACEEE, or a hard copy can be purchased for $20 plus $5 p&h from ACEEE Publications (see the site).
