Report Energy Efficiency Resource Standards (EERS)

Background

In recent years, states have been actively updating and expanding their Energy Efficiency Resource Standards (EERS), which require utilities to achieve a certain percentage of energy savings based on the amount of electricity or natural gas sold in the state. States have implemented these long-term efficiency goals to decrease electricity and natural gas consumption and promote efficient technologies that reduce pollution associated with energy generation and use. A recent analysis by the American Council for an Energy-Efficient Economy found that in 2017, states with an EERS achieved annual incremental savings of 1.2% of retail electricity sales on average; by comparison, states without an EERS only achieved savings of 0.3%.

Texas adopted the first EERS standards in 1999 and since then, over 30 other states have successfully implemented EERS programs that remain in place today, with Virginia being the most recent. Some of the more recent state revisions to EERS policies include expanding standards to require efficiency targets for natural gas, extending standards to require efficiency targets in future years and establishing mandatory targets to replace voluntary goals. For example, in 2019 Washington for the first time expanded its EERS to include requirements for natural gas utilities and New Mexico enacted legislation requiring that the state set efficiency targets for 2026 through 2030 no later than 2025. During the 2020 session, Virginia enacted comprehensive clean energy legislation establishing statutory utility energy savings requirements for 2022 through 2025 and directing the state corporation commission to establish targets for future years. While most recent state action has targeted updating or expanding EERS policies, a few states—including Florida, Indiana, and Ohio—have enacted policies that effectively eliminate their EERS programs.

Policy Design

The vast majority of states with EERS programs enacted legislation creating a framework for efficiency targets and implementation, while a smaller number enforce efficiency requirements by regulation only. In particular, five of the states with EERS programs currently in effect, including Arizona, Arkansas, New Hampshire, New York, and Oregon, implement their binding EERS requirements through state utility commission order without any statutory directive. At least four states—Delaware, Utah, Missouri, and South Dakota— and Washington, D.C. currently implement voluntary goals without any binding requirements. State EERS policies also diverge on a number of design elements, including the stringency of the targets set, the entities regulated, and the use of spending restrictions or requirements.

Of the 33 states currently implementing EERS policies, 21 set specific savings requirements for natural gas, the remaining 12 states set targets for electricity-only. Some states, like New Jersey, require specific incremental annual savings while other states, like Hawaii, set cumulative targets that must be met by a certain year. Annual incremental energy savings targets vary among states from less than 1% to more than 2%. Some states like Colorado and Maine also set specific targets for reduction in peak demand.

Four states have designated a third party other than the state utility commission or regulated utility to administer their EERS programs. Maine, Oregon, Vermont, and Wisconsin all rely on third-party administrators to ensure utilities meet energy efficiency targets. In these states, the EERS plans developed by the third-party administrator are reviewed and approved by the state utility commission.

At least two states, North Carolina and Nevada, currently implement binding EERS requirements through a joint Renewable Portfolio-Energy Efficiency Standard. Other states like Utah and South Dakota combined voluntary RPS and energy efficiency targets and allow for a portion of a utility’s RPS compliance obligation to be satisfied through energy efficiency or demand-side measures.

Several states—including Illinois, Iowa, Pennsylvania, Texas and Wisconsin—also set cost caps limiting efficiency program costs that may be passed onto consumers during a given time period. Other states, like Vermont and Virginia, implement their EERS through spending requirements, mandating utility expenditures on efficiency programs without establishing specific energy savings targets. Additionally, at least seven states require that regulated utilities implement all cost-effective efficiency measures.

Challenges in EERS Implementation

While more than half of the nation’s states have successfully established EERS polices, some states have been unsuccessful in fully implementing EERS programs after passing enabling legislation. For example, Alaska enacted House Bill 306 in 2010, committing to a statewide 15% increase in per capita energy efficiency between 2010 and 2020, but never codified this commitment or implemented regulations to facilitate such efficiency increases. Other states, like Delaware, did codify their EERS targets, but never adopted regulations necessary to enforce the standards. Note that Delaware is currently in the process of developing binding EERS requirements. Additionally, some states have backtracked after enacting legislation that requires state energy efficiency targets. While Florida law requires the state to set efficiency targets, the Florida Public Service Commission recently approved utility plans with negligible requirements, effectively eliminating the state’s EERS program. Similarly, Ohio passed legislation in 2019 that effectively eliminated it’s EERS program after the end of 2020.

Energy Efficiency Resource Standards or Voluntary Targets

Arizona

• Title: Electric Energy Efficiency Standards.
• Effective Date: 2011.
• Applicable Sectors: Investor-owned utilities (gas and electric); electric cooperatives.
• Requirement: 2.5% annually for electric utilities; at least 75% of annual targets for gas companies. Rulemaking is ongoing to update these for 2020-2030.
• Description: Public service corporations that provide electric services to retail customers were required to achieve 22% cumulative energy savings by the end of 2020 with incremental savings of 2.5% per year in 2016 through 2020. Requires gas distribution cooperatives to achieve at least 75% of annual energy savings requirements. . As of August 2021, rulemaking was ongoing to extend the state’s EERS, including required savings equal to a 35% reduction in 2020 peak demand by 2030. They also would include an annual MWh savings target of 1.3%, averaged over each 3-year planning period.
• Enabling Statute, Code or Order: Ariz. Admin. Code § 14-2-2401 et seq.

Arkansas

• Title: Energy Saving Targets.
• Effective Date: 2011.
• Applicable Sectors: Investor-owned utilities (electric & gas).
• Requirement: 1% for electric and 0.5% for natural gas in 2019; 1.2% for electric and 0.5% for natural gas in 2020 through 2022.
• Description: Saving requirements for 2019 are 1% of 2015 retail sales for electric utilities and 0.5% of 2015 retail sales for natural gas utilities. For 2020 through 2022, saving requirements are 1.2% of 2018 retail sales for electric utilities and 0.5% of 2018 retail sales for natural gas utilities.
• Enabling Statute, Code or Order: Order No. 31, Docket No. 13-002-U; Order No. 43, Docket No. 13-002-U.

California

• Title: Energy Efficiency Goals.
• Effective Date: 2004.
• Applicable Sectors: Investor-owned utilities (electric & gas).
• Requirement: Utility-specific annual targets for 2018-2030.
• Description: In 2015, California enacted Senate Bill 350, comprehensive clean energy legislation, which in part requires the state to set annual energy savings and peak demand reduction targets that double total energy savings for electricity and natural gas by 2030. In 2017, the state Public Utilities Commission adopted utility-specific annual energy savings goals for 2018-2030, but deferred the adoption of cumulative targets. The PUC revised these annual targets in 2019 after conducting a study finding a decreasing future potential for energy savings from certain electricity programs. The 2019 update sets utility-specific annual targets for 2020-2030.
• Enabling Statute, Code or Order: CPUC Decision 17-09-025.

Colorado

• Title: Energy Savings and Peak Demand Reduction Goals.
• Effective Date: 2007.
• Applicable Sectors: Investor-owned utilities (electric & gas).
• Requirement: 5% by 2028; gas utility savings targets commensurate with expenditures equal to at least 0.5% of revenues.
• Description: In 2017, Colorado enacted House Bill 1227, which extended the state’s EERS for electric utilities out to 2028 and required the state Public Utility Commission to set targets to reduce peak demand by 5% and achieve energy savings of 5% compared to a 2018 baseline. Gas utilities are required to adopt expenditure targets equal to at least 0.5% of the utility’s revenues from the prior year and establish savings targets commensurate with such expenditures.
• Enabling Statute, Code or Order: Colo. Rev. Stat. § 40-3.2-103; Colo. Rev. Stat. § 40-3.2-104.

Connecticut

• Title: Conservation and Load Management Plan.
• Effective Date: 2007.
• Applicable Sectors: Investor-owned utilities (electric & gas).
• Requirement: 1.11% for electric and 0.59% for gas in 2019-2021.
• Description: In 2013, Connecticut enacted Public Act No. 13-298, requiring electric and gas companies to submit a joint conservation and load management plan to the state for review and approval. The 2019-2021 plan requires annual average incremental savings of 1.11% for electric companies and 0.59% for natural gas companies.
• Enabling Statute, Code or Order: Conn. Gen. Stat. Ann. § 16-245m; 2019-2021 Conservation and Load Management Plan (2018).

Delaware (voluntary)

• Title: Energy Efficiency Resource Standards.
• Effective Date: 2009.
• Applicable Sectors: Electricity and natural gas (statewide).
• Voluntary Targets: As established by the Energy Efficiency Advisory Council.
• Description: In 2009, Delaware initially enacted its Energy Efficiency Resource Standards setting goals out to 2015 (15% by 2015 for electric; 10% by 2015 for gas), but never established implementation rules to enforce the standards. In 2014, Delaware enacted legislation that created the Energy Efficiency Advisory Council (EEAC) to facilitate the deployment of energy efficiency programs. Program plans are designed around a 3-year timeframe, with annual targets increasing each year to reach the cumulative 3-year goal. The EEAC set cumulative average targets for 2020-2022 in May 2020. Binding targets are under review but have not yet been established.
• Enabling Statute, Code or Order: Del. Code. Ann. tit. 26, § 1500 et seq; Del. Code Ann. tit. 29, § 8051 et seq.

District of Columbia (voluntary)

• Title: Sustainable Energy Programs.
• Effective Date: 2008.
• Applicable Sectors: Electric and natural gas.
• Voluntary Targets: As established by the Sustainable Energy Utility.
• Description: In 2008, D.C. enacted the Clean and Affordable Energy Act authorizing the mayor to enter into third-party contracts with a Sustainable Energy Utility (SEU) tasked with developing, coordinating, and providing programs for sustainable use of energy. An SEU is statutorily required to, at a minimum, reduce per capita energy consumption and peak demand growth and reduce energy demand growth among D.C.’s largest users. Contractual energy efficiency goals are set through the third-party contracting process. The SEU reported total electricity and natural gas savings in excess of fiscal year 2018 contractual goals. In 2018, D.C. enacted the Clean Energy DC Omnibus Amendment Act expanding funds for administering SEU contracts.
• Enabling Statute, Code or Order: D.C. Code Ann. § 8-1774.01 et seq.

Hawaii

• Title: Energy-Efficiency Portfolio Standards.
• Effective Date: 2004. Note that the state’s current standalone EERS became effective in 2009.
• Applicable Sectors: Electric (statewide target).
• Requirements: 4,300 GWh reduction by 2030.
• Description: In 2004, Hawaii enacted a Renewable Portfolio Standard (RPS) legislation that included “energy savings” within its definition of “renewable energy” effectively implementing a combined RPS-EERS program. In 2009, the state enacted legislation creating a standalone EERS program requiring that statewide electricity consumption be reduced by 4,300 GWh by 2030 and directing the public utility commission to establish interim goals for 2015, 2020 and 2025.
• Enabling Statute, Code or Order: Hawaii Rev Stat. § 269-96; Senate Bill 2474 (2004); House Bill 1464 (2009).

Illinois

• Title: Energy Efficiency and Demand-Response Measures.
• Effective Date: 2007.
• Applicable Sectors: Electric utilities serving more than 500,000; gas utilities.
• Requirements: Varies by the number of customers served for electric utilities: 2030 cumulative reductions of 16% or 21.5%; for gas utilities: incremental annual savings of 1.5% in 2019 and later.
• Description: Electric utilities serving at least 500,000 customers are required to achieve an increasing percentage of cumulative savings until reaching a 2030 target. Those electric utilities serving more than 500,000 but less than 3,000,000 customers are required to achieve cumulative savings of 8.2% in 2019, 9% in 2020 and 9.8% in 2021 until reaching 16% in 2030, and those serving 3,000,000 or more customers are required to achieve cumulative savings of 9.1% in 2019, 10.4% in 2020 and 11.8% in 2021 until reaching 21.5% in 2030. Gas utilities are required to achieve incremental annual savings of 1.5% in 2019 and every year thereafter. Note that Illinois also implements a cost cap for energy efficiency measures of 3.5% in 2019 through 2021, increasing to 3.75% in 2022 and 4% in 2026.
• Enabling Statute, Code or Order: Ill. Rev. Stat. ch. 220 § 5/8-103; Ill. Rev. Stat. ch. 220 § 5/8-104; Ill. Rev. Stat. ch. 220 § 5/8-103B.

Iowa

• Title: Energy Efficiency Plans.
• Effective Date: 2008.
• Applicable Sectors: Investor-owned Utilities (electric & gas).
• Requirements: Utility-specific, as approved by the Iowa Utilities Board.
• Description: Rate-regulated electric and gas utilities are required to file five-year energy efficiency plans with the Iowa Utilities Board (IUB). In 2018, Iowa enacted legislation that implemented an energy efficiency utility cost cap of 2% for electric and 1.5% for gas. Approved Energy Efficiency Plans for regulated utilities for the 2019-2023 compliance period can be found here.
• Enabling Statute, Code or Order: Iowa Code § 476.6; Senate File 2386 (2008); Senate File 2311 (2018).

Maine

• Title: Efficiency Maine Trust Triennial Plan.
• Effective Date: 2010.
• Applicable Sectors: Electric and natural gas utilities.
• Requirements: Annual savings determined by Triennial Plans; 2.3% for electric and 0.1% for natural gas from 2020-2022.
• Description: State law requires the Efficiency Maine Trust Board to develop a Triennial Plan that includes a cost-benefit analysis of energy savings programs aimed at achieving energy reduction targets, including reducing peak-load demand for electricity by 300 MW and achieving electricity and natural gas savings of at least 20% by 2020. The Public Utility Commission must review and approve each Triennial Plan. The Fourth Triennial Plan for FY 2020-2022 can be found here. Maine’s EERS are administered by a third party, Efficiency Maine.
• Enabling Statute, Code or Order: Me. Rev. Stat. Ann. tit. 35-A §10101 et seq.; House Papers 1038 (2009); House Papers 1128 (2013).

Maryland

• Title: Energy Efficiency Programs.
• Effective Date: 2008.
• Applicable Sectors: Investor-Owned Utilities (electric only).
• Requirement: Savings increase of 0.2% per year until reaching 2% per year.
• Description: Maryland’s EERS as initially enacted in 2008, established a statewide goal of reducing electricity consumption and peak demand by 15% by the end of 2015. The Maryland Public Service Commission established new post-2015 targets in Order 87082, which were codified in 2017 through the passage of Senate Bill 184. For the 2018-2020 and 2021-2023 compliance cycles, electric utilities are required to increase annual energy savings by 0.2% per year until achieving annual incremental savings of 2%.
• Enabling Statute, Code or Order: Md. Public Utilities Code Ann. § 7-211; Senate Bill 184 (2017).

Massachusetts

• Title: Efficiency Investment Plans.
• Effective Date: 2008.
• Applicable Sectors: Electric and gas utilities.
• Requirements: As established in approved three-year joint plan; current 2019-2021 incremental savings target of 2.7% of retail sales for electric, 1.25% of natural gas.
• Description: State law requires electric and gas utilities to submit a joint energy efficiency investment plan to the Department of Public Utilities for review and approval every three years. Utilities are required to deploy all available energy efficiency programs that are cost-effective.
• Enabling Statute, Code or Order: Mass. Gen. Laws Ann. ch. 25 § 21; Massachusetts Joint Statewide Electric and Gas Three-Year Energy Efficiency Plan (2019-2021).

Michigan

• Title: Incremental Energy Savings.
• Effective Date: 2008.
• Applicable Sectors: Electric providers and natural gas providers.
• Requirements: 1% of preceding year’s sales for electricity; 0.75% of preceding year’s sales for natural gas.
• Description: Under the Clean and Renewable Energy and Energy Waste Reduction Act, annual incremental savings requirements are determined based on the providers’ total sales during the previous year. Through 2021, electric providers are required to implement waste reduction programs that achieve savings equivalent to 1% of the provider’s total annual retail electricity sales during the previous year. Gas providers are required to implement waste reduction programs that achieve energy savings equivalent to 0.75% of the provider’s total annual retail natural gas sales during the previous year.
• Enabling Statute, Code or Order: Mich. Comp. Laws § 460.1077; Senate Bill 483 (2016).

Minnesota

• Title: Energy-Saving Goals.
• Effective Date: 2007.
• Applicable Sectors: Electric utilities and natural gas utilities.
• Requirements: 1.5% incremental savings, adjustable down to 1%.
• Description: Although electric and gas utilities are generally required to have an annual every-savings goal equivalent to 1.5% of total annual retail sales, the Commissioner of Commerce has the discretion to reduce a particular utility’s energy-savings targets upon request. The commissioner may not approve a savings goal of less than 1%.
• Enabling Statute, Code or Order: Minn. Stat. § 216B.241; Senate File 145.

Missouri (voluntary)

• Title: Demand-Side Programs.
• Effective Date: 2011.
• Voluntary Targets: 1.7% by 2019; 1.9% by 2020.
• Description: Missouri established, via regulation, voluntary energy efficiency goals for electric utilities. The applicable state regulations explicitly state that such energy efficiency goals are not mandatory and no penalties can be imposed on utilities that do not meet these targets. Voluntary annual incremental savings targets are 1.7% of total energy for 2019 increasing to 1.9% in 2020. There is also a voluntary static target of reducing annual peak demand by 1%. The objective of such annual incremental targets is to achieve cumulative 2020 savings of 9.9% of total annual energy and 9% of peak demand.
• Enabling Statute, Code or Order: Mo. Code Regs. tit. 4 § 240-20.094.

Nevada

• Title: Energy Efficiency Measure.
• Effective Date: 2005.
• Applicable Sectors: Investor-owned utilities (electric-only).
• Requirements: 20% of RPS requirement (50% by 2030) in 2019; 10% in 2020-2024; 0% in 2025.
• Description: Nevada currently administers its EERS as part of its Renewable Portfolio (RPS) program. In 2019, up to 20% of a utility’s compliance obligation may be met through energy efficiency measures, decreasing to 10% in 2020 through 2024 and fully phasing out by 2025. Nevada enacted Senate Bill 150 (2017), which directed the state Public Utilities Commission to regulate energy savings goals for each electric utility. In 2019, Nevada enacted Senate Bill 358, increasing the state’s renewable portfolio target from 25% in 2025 to 50% in 2030.
• Enabling Statute, Code or Order: Nev. Rev. Stat. § 704.7821; Nev. Rev. Stat. § 704.783.

New Hampshire

• Title: Energy Efficiency Resource Standards.
• Effective Date: 2016.
• Applicable Sectors: Electric utilities and natural gas utilities.
• Requirements: Electric savings of 4.2% of 2019 delivery sales total for 2021-2023 (or 436,606 MWh/year); gas savings of 2.8% annually compared to 2019 sales baseline (or 701,884 MMBtu/year)
• Description: In 2016, the New Hampshire Public Utilities Commission approved a settlement agreement establishing EERS savings goals for gas and electric utilities. The order requires gas and electric utilities to achieve a certain savings percentage based on statewide delivered sales in 2014. The EERS targets, as a percentage of 2014 delivered sales, were 1% for electricity and 0.75% for gas in 2019 increasing to 1.3% for electricity and 0.8% for gas in 2020. These were intended to achieve total savings of 3.1% of electric sales and 2.25% of gas sales by 2020 as compared to the 2014 baseline. In 2020, the state’s utilities submitted a 2021-2023 draft plan for consideration by state regulators, working with state staff, that will require annual electricity savings of 4.2% compared to 2019, or 436,606 MWh annually. This target is increased from the 3.2% set in the 2018-2020 plan. It would also require natural gas savings of 2.8% annually from the 2019 baseline, or 701,884 MMBtu per year
• Enabling Statute, Code or Order: Or. No. 25,932; RSA 125-O:5-a.

New Jersey

• Title: Energy Efficiency Program.
• Effective Date: 2018.
• Applicable Sectors: Public utilities (electric & gas).
• Requirements: Annual reductions of 2% for electric and 0.75% for gas within five years.
• Description: Each electric and gas public utility is required to implement an energy efficiency program that achieves 2% and 0.75% annual energy savings, respectively, based on the average annual usage during the previous three-year period. Of note, utilities must achieve their required annual energy savings within five years of program implementation. Additionally, gas utilities are not required to reduce natural gas used for distributed energy to comply with annual targets.
• Enabling Statute, Code or Order: N.J. Rev. Stat. § 48:3-87.9.

New Mexico

• Title: Energy Savings Targets.
• Effective Date: 2008.
• Applicable Sectors: Electric utilities.
• Requirement: 5% by 2025.
• Description: State law requires electric utilities to achieve savings of 5% of the total 2020 retail sales by 2025. In 2019, New Mexico enacted House Bill 291 requiring the Public Regulation Commission to set energy savings targets for 2026 through 2030 no later than June 30, 2025.
• Enabling Statute, Code or Order: N.M. Stat. Ann. § 62-17-1.

New York

• Title: Energy Efficiency Portfolio Standard.
• Effective Date: 2008.
• Applicable Sectors: Electric utilities and natural gas utilities (statewide target).
• Requirements: Energy savings of 185 trillion BTU below 2025 projections (goal); 3% incremental annual reduction in electricity sales, and 1.3% for natural gas by 2025.
• Description: New York’s energy efficiency standards are established by regulation through the State Public Service Commission (PSC) order. In 2018, the PSC approved statewide energy efficiency targets out to 2025. A description of New York’s energy efficiency program and the order approving current targets can be found here. In 2019, New York enacted legislation codifying an energy savings goal of 185 trillion BTU below forecasted 2025 energy consumption levels. 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 energy savings as a percentage of sales of 3.0% for electric in 2025, and 1.3% for gas in 2025.
• Enabling Statute, Code or Order: NY PSC Case 07-M-0548 (2008); NY PSC Case 18-M-0084 (2018); Senate Bill 6599 (2019).

North Carolina

• Title: Renewable Energy and Energy Efficiency Portfolio Standard (REPS).
• Effective Date: 2007.
• Applicable Sectors: Electric-only (statewide target).
• Requirements: Public electric utilities in the state must obtain renewable energy power and energy efficiency savings of 12.5% of 2020 retail sales in 2021 and thereafter. As of 2021, 40% of this requirement can be met with energy efficiency measures.
• Description: North Carolina administers a combined EERS/RPS program and provides for the deployment of energy efficiency measures in meeting a certain percentage of total REPS requirements. Presently, electric utilities may use energy efficiency measures to meet up to 25% of their REPS requirement. In 2021, the allowable percentage of energy efficiency measures that can count toward a utility’s REPS compliance obligation to 40%.
• Enabling Statute, Code or Order: N.C. Gen. Stat. § 62-133.8.

Ohio

• Title: Energy Efficiency Programs.
• Effective Date: 2008.
• Applicable Sectors: Investor-owned utilities (electric-only).
• Requirements: 1% in 2019-2020; 2% in 2021 and thereafter.
• Description: Under state law, electric utilities are required to implement programs that achieve annual incremental savings of 1% in 2017-2020, increasing to 2% in 2021 and every year thereafter. However, Ohio enacted House Bill 6 in 2019, which effectively eliminates the state’s EERS program provided a total energy savings of 17.5% has been achieved since 2009. Utilities were already expected to surpass this savings target by the end of 2020. The bill also prevented the public utilities commission from approving any cost-recovery mechanism after the commission deems these saving to have been met. EERS-related programs ended at the close of 2020.
• Enabling Statute, Code or Order: Ohio Rev. Code Ann. § 4928.66.

Oregon

• Title: Energy Savings Goals.
• Effective Date: 2010 (first long-term plan).
• Applicable Sectors: Electric utilities and natural gas utilities.
• Requirements: Electricity savings of 240 average MW and 24 million therms of natural gas between 2015 and 2019. The 2020-2024 plan replaces quantitative energy savings and generation goals with progress indicators across five focus areas that will guide energy efficiency investments through an ongoing, iterative analysis of progress in these areas.
• Description: In 1999, Oregon enacted legislation that authorized the Oregon Public Utility Commission to direct funding for renewable energy and efficiency programs through a third-party nongovernmental organization. Oregon’s EERS are administered by a third party, the Energy Trust of Oregon, and integrated into utility Integrated Resource Plans for Public Utility Commission review and approval. Energy Trust establishes EERS through its five-year strategic planning process. The current plan for 2020 through 2024 can be found here.
• Enabling Statute, Code or Order: Or. Rev. Stat. § 757.612; Senate Bill 1149 (1999).

Pennsylvania

• Title: Energy Efficiency and Conservation Program.
• Effective Date: 2008.
• Applicable Sectors: Electric utilities with more than 100,000 customers.
• Requirements: Utility-specific as established by Public Utility Commission Order.
• Description: State law requires the Pennsylvania Public Utility Commission (PUC) to establish additional incremental energy savings requirements beyond the 2013 requirement of 3% total consumption savings and 4.5% annual peak demand savings provided that the PUC determines the benefits of the existing programs outweigh the costs to consumers. The PUC is required to evaluate costs and benefits beginning in 2013 and every five years thereafter.
• Enabling Statute, Code or Order: Pa. Cons. Stat. Ann. tit. 66, § 2806.1.

Rhode Island

• Title: Energy Efficiency Program Plans.
• Effective Date: 2006.
• Applicable Sectors: Electric and natural gas utilities.
• Requirements: Average annual incremental savings from 2018-2020 of 2.5% for electric and 0.97% for gas.
• Description: Pursuant to state law, the Rhode Island Energy Efficiency and Resource Management Council establishes triennial energy efficiency targets for electric and natural gas utilities for Public Utility Commission review and approval. Rhode Island’s Triennial Plan for 2018 through 2020 establishes the following annual incremental efficiency targets as a percentage of total 2015 energy load as follows: 2.4% in 2018, 2.6% in 2019, and 2.53% in 2020 for electricity, and 0.94% in 2018, 0.97% in 2019, and 0.99% in 2020 for gas.
• Enabling Statute, Code or Order: R.I. Gen. Laws § 39-1-27.7; National Grid 2018-2020 Energy Efficiency and System Reliability Procurement Plan (2017).

South Dakota (voluntary)

• Title: Renewable, Recycled and Conserved Energy Objective.
• Effective Date: 2008; 2009.
• Applicable Sectors: Electric providers.
• Voluntary Targets: 10% by 2015.
• Description: Electric providers may voluntarily participate in the state’s renewable energy program and implement energy conservation measures in meeting the program’s voluntary targets.
• Enabling Statute, Code or Order: S.D. Admin. R. 20:10:38:01 et seq.

Texas

• Title: Goal for Energy Efficiency.
• Effective Date: 1999.
• Applicable Sectors: Electric utilities.
• Requirements: Utility specific- 30% of annual growth in demand; 0.4% of peak demand.
• Description: Under state law, electric utilities are required to achieve energy savings equivalent to no less than 30% of the utility’s annual growth in customer demand. Electric utilities are also required to achieve savings equivalent to 0.4% of peak demand.
• Enabling Statute, Code or Order: Tex. Utilities Code Ann. § 39.905.

Utah (voluntary)

• Title: Renewable Portfolio Goal.
• Effective Date: 2008.
• Applicable Sector: Electric companies.
• Requirements: 20% renewables by 2025.
• Description: Electric companies may use demand-side management programs to achieve voluntary statewide renewable portfolio goals through energy efficiency, with no percentage cap.
• Enabling Statute, Code or Order: Utah Code Ann. §54-17-101 et seq.; Utah Code Ann. §10-19-101 et seq.

Vermont

• Title: Energy Efficiency Programs.
• Effective Date: 2000.
• Applicable Sectors: Designated Energy Efficiency Utilities (electric & gas):Efficiency Vermont; Burlington Electric; Vermont Gas Systems.
• Requirements: Utility-specific .
• Description: State law empowers the Public Utility Commission (PUC) to develop and enforce energy efficiency targets, including appointing energy efficiency utilities. It also requires that the PUC establish charges to support energy efficiency programs that realize all cost-effective efficiency measures that are reasonably available. Every three years the Vermont PUC holds a Demand Resources Plan (DRP) proceeding to determine short and long-term energy efficiency savings targets. Vermont’s EERS for electricity is implemented by a third-party –Efficiency Vermont.
• Enabling Statute, Code or Order: Vt. Stat. Ann. tit. 30 § 209; Efficiency Vermont Triennial Plan 2018-2020.

Virginia

• Title: Energy Efficiency Programs.
• Effective Date: 2020.
• Applicable Sectors: Electric utilities.
• Requirements: Utility-specific: 2% for Phase I and 5% for Phase II by 2025.
• Description: In 2020, Virginia enacted legislation creating mandatory energy savings targets for investor-owned utilities. Virginia's energy savings targets had previously been voluntary. Phase I utilities are required to achieve incremental savings of .5% per year using the utility's annual average retail sales in 2019 as a baseline. The targets start at .5% for 2022 increasing to 2% in 2025. Phase II utilities are required to achieve more aggressive annual incremental targets of 1.25% relying on the same 2019 jurisdictional retail sales baseline. The targets start at 1.25% for 2022 increasing to 5% by 2025. The 2020 law also directs the Virginia Corporation Commission to establish new energy savings targets for 2026 through 2028 and for each three-year period thereafter.
• Enabling Statute, Code or Order: Va. Code § 56-596.2; Senate Bill 851 (2020).

Washington

• Title: Energy Conservation Targets.
• Effective Date: 2006 (electric); 2019 (gas).
• Applicable Sectors: Gas companies and electric utilities with more than 25,000 customers.
• Requirements: Utility-specific.
• Description: Pursuant to state law, electric utilities are required to identify and make publicly available biennial conservation targets. They are also required to pursue all available cost-effective, feasible and reliable conservation measures. In 2019, Washington enacted legislation that expanded its energy efficiency targets to include natural gas utilities and required that conservation targets for gas companies take effect by 2022.
• Enabling Statute, Code or Order: Wash. Rev. Code § 19.285.040; Wash. Rev. Code § 80.28.380.

Wisconsin

• Title: Energy Efficiency and Renewable Resource Programs.
• Effective Date: 2011.
• Applicable Sectors: Electric and natural gas utilities (statewide target).
• Requirements: As established by the Wisconsin Public Service Commission approximately 22,832 GWh for electricity and approximately 1,243 million therms for gas (gross life cycle) for 2019-2022
• Description: State law requires that the Wisconsin Public Service Commission set renewable energy and savings targets every four years. In 2018, the PSC established Commission and Program goals for natural gas and electric savings for 2019-2022. Wisconsin’s EERS is administered by a third party—Focus on Energy.
• Enabling Statute, Code or Order: Wis. Stat. § 196.374; PSCW Ord, Docket 5-FE-101 (June 2018).