February 26, 2009

ON THE HORIZON: PA AND OH ENERGY EFFICIENCY STUDIES, MI'S BOLD STEPS IN MI, AND NEW STATE NETWORK E-NEWSLETTER

ACEEE is set to release two timely reports on the potential for energy efficiency in Pennsylvania and Ohio. The current state of the economy has crippled many states' budgets, making it difficult for them to cope with increasing unemployment and falling tax revenues. But while darkness looms over the financial sector, the sun is rising on energy efficiency. Energy efficiency can exert a positive force in states' economies by creating new "green collar" jobs while providing relief for consumers faced with rising energy costs. The added boon of federal funding from the American Recovery and Investment Act, which includes $6.3 billion for state energy efficiency and clean-energy grants, will provide funds for states to make those initial investments.

In March, ACEEE will release Potential for Energy Efficiency, Demand Response, and On-Site Solar Energy in Pennsylvania. In 2008, Pennsylvania passed two major pieces of legislation: The Alternative Energy Investment Fund, which establishes a $650 clean energy fund to provide incentives for energy efficiency and clean energy resources; and Act 129, which imposes new energy efficiency requirements on electric distribution companies, with the overall goal of reducing energy consumption and demand. With this legislation in place and our report as a guide, the Commonwealth is poised to make great strides in efficiency. The report examines the potential for energy efficiency with regards to electricity, natural gas, fuel oil, and propane and also includes an analysis of the potential for on-site solar energy. In addition, it looks at the energy efficiency potential in the two largest metropolitan areas in the state, Philadelphia and Pittsburgh. The wide scope of the Pennsylvania study makes it the most extensive report ACEEE has published in its State Clean Energy Resource Project (SCERP).

Mid-March will see the release of ACEEE's Ohio report entitled The Potential for Energy-Efficiency in Ohio. On May 1, 2008, Governor Ted Strickland signed Senate Bill 221, which included legislation mandating an Energy Efficiency Resource Standard (EERS) requiring utilities to reduce electricity consumption by at least 22% by 2025. The introduction of the bill was meant to alleviate the effects of a slumping economy and volatile energy markets, exaggerated by the pending expiration of Ohio's rate stabilization plans, which were created when Ohio committed to deregulation in 2001. The Public Utilities Commission of Ohio (PUCO) is deliberating over how utilities will be allowed to achieve the 22% savings, an issue ACEEE addresses in the report by suggesting a suite of five policies that the PUCO should allow to contribute towards that target. The implementation of these five policies will help meet a significant portion of the EERS target, minimizing the savings that ultimately will have to come from utility-sponsored programs. An additional five supporting policies, such as workforce development and updated building energy codes, will catalyze indigenous job growth and help provide much-needed financial relief to Ohio's residents.

More information on ACEEE’s State Clean Energy Resource Project (SCERP) activities are on our Web site.

Michigan's Bold Step to "Put Utilities in the Energy Efficiency Business"

On February 3rd, Michigan Governor Jennifer Granholm announced a bold "clean energy" goal:  to reduce Michigan’s use of fossil fuels for electricity generation 45% by 2020. The Governor called for aggressively increasing energy efficiency efforts, in part by reforming regulation to “put our utilities in the energy efficiency business,” and for dramatically expanding the use of in-state renewable resources, both through utility-scale applications as well as through a proposed “feed-in tariff” for residential and business customers. She also directed the Department of Environmental Quality and the Michigan Public Service Commission to rigorously scrutinize any proposals for new coal-fired power plants to assess whether clean energy resources would be a viable and lower-cost alternative.

This bold proposal was particularly applauded by ACEEE Utilities Program Director Marty Kushler who resides in Michigan and has been working hard to improve Michigan’s energy efficiency policies and performance. Read the ACEEE press release. Read the text of the Governor’s speech.

ACEEE's New State Network E-Newsletter

As the ACEEE Policy team prepares to draft the 2009 State Energy Efficiency Scorecard Report and update our online State Energy Efficiency Policy Database, the input of stakeholders at the state level will be vitally important. In order to ensure accurate, up-to-date information, ACEEE has begun to establish a network of contacts at the state level to share policy and program developments. In addition to these two projects, ACEEE will send its state network an e-newsletter highlighting new energy efficiency policy developments and program accomplishments. The March e-newsletter, intended for state energy offices, will highlight proven energy efficiency programs that can be easily implemented with incoming State Energy Program funds appropriated in the February stimulus package. The e-newsletter will be posted on the ACEEE Web site.

To learn more or to get involved in the state network, please contact Michael Sciortino: 202-507-4028 or e-mail: msciortino@aceee.org.

More information about ACEEE’s State Clean Energy Resource Project (SCERP) is available on our Web site.

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