An Energy Efficiency Resource Standard (EERS) is both a state and federal policy that sets annual energy efficiency targets for a long-term period of time. An EERS is similar in concept to a Renewable Energy Standard (RES). Where an RES dictates to electric service providers a certain percentage of energy generation from renewable sources, an EERS requires a percentage reduction in energy use from energy efficiency measures. Savings are generally achieved by helping end-use customers save energy through energy efficiency programs, including the use of rebates and other incentives. In effect, a federal EERS would complement existing state-level energy efficiency standards by setting a national goal for energy savings that would be implemented over a specific period of time.

The American Clean Energy Security Act of 2009 (which did not become law) set a 5% efficiency target, with an option for governors to petition that an additional 3% of the reductions come from efficiency in a given state. As baseline, business-as-usual projections for efficiency savings are close to 5% of nationwide electricity sales in 2020, the savings generated from a 10% requirement would have a more significant and positive impact on our economy. The proposed EERS in the Senate bill (ACELA), however, would have only required 4% savings by 2020, which would have produced no new energy savings, according to ACEEE.

As of October 2011, twenty-four states have passed an EERS requiring utilities selling electricity to annually save a certain percentage of sales through energy efficiency. Three states have voluntary goals. The strongest EERS requirements exist in Vermont and Massachusetts, which require around 2.5 percent savings annually. State level standards implemented in California, Connecticut, Hawaii, Nevada, and Texas have all met or are on track to meet their long-term targets. The policy may be adopted for both electricity and natural gas through the legislative or regulatory process, or both. For a complete summary of state-level EERS policies and impacts, see the State EERS Policy Brief.

At both the federal and state levels, an EERS is a critical policy that lays the foundation for sustained investment in energy efficiency. The long-term goals associated with an EERS sends a clear signal to market actors on the importance of energy efficiency in utility program planning, creating a level of certainty to encourage large-scale, productive investment in energy efficiency technology and services.

⇒ FInd out which states have EERS's in place with ACEEE's State Energy Efficiency Policy Database.