Brief #9: The Energy Efficiency Resource Standard
Energy efficiency resource standards (EERS) mandate that energy providers meet a quantified energy savings goal through energy efficiency. They can be expressed as a percentage of retail sales (based on projected demand or a historical baseline), as an absolute reduction in retail sales, or as a reduction in peak demand, and they can apply to electricity, natural gas or both. As of April 2010, 22 states have an EERS in place, two have a combined EERS and renewable portfolio standard, and one has a voluntary goal, while at least four others are considering the policy. This paper presents the details of the EERS currently in place, explains the challenges of measuring the effectiveness of an EERS, and explores several issues that a state should consider when implementing an EERS.
The brief is the ninth and final report in a series entitled Energy Efficiency State Policies, developed by Matthew Brown, a partner with Harcourt Brown LLC. Harcourt Brown LLC is a consulting firm with a specialty in financing for clean energy and environmental strategy.
