ACEEE'S GRAPEVINE ONLINE

May 25, 2006

EFFICIENCY RESOURCE STANDARDS: THE NEXT BIG BANG FOR ENERGY POLICY

An Energy Efficiency Resource Standard (EERS) could save as much energy as improving U.S. vehicles' fuel economy to 40 mpg, according to Energy Efficiency Resource Standards: Experience and Recommendations, which ACEEE released in February. An Energy Efficiency Resource Standard 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 efficiency providers. Savings from distribution system efficiency improvements, combined heat and power (CHP) systems, and other high-efficiency distributed generation systems may be included as well. The report profiles energy efficiency resource standard policies in ten states (adopted in TX, HI, NV, CT, CA, VT, PA, and CO; pending in IL and NJ) and four European countries (U.K., Italy, France, and Belgium) and makes recommendations for similar state and federal policies. The report concludes that implementation of EERS policies at the federal or state level could reduce energy use nationwide by nearly 5% in 2020 and save consumers and businesses about $170 billion from efficiency measures implemented over the 2007–2020 period.

Read the full press release.

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