Welcome to Highlights- Efficiency News that Matters to the Northeast

It's been a roller coaster of a year in energy efficiency - with lots of exciting developments at the state and federal levels, and many disappointing ones- as hard-pressed states raid millions in efficiency funds. We've seen national leadership on high performance buildings, codes and standards, improved coordination among federal agencies, a tremendous influx of funding under the Recovery Act and movement on federal energy and climate legislation.

Maine is poised to launch new all-fuel programs under the Efficiency Maine Trust, Vermont is seeking a long-term arrangement for VEIC to deliver Efficiency Vermont programs, New Hampshire is inching towards more comprehensive energy policies that put efficiency as a first-order resource. Massachusetts is into its first year under the ground-breaking integrated programs set in motion under the Green Communities Act. Several states are moving forward with appliance standards legislation, clean energy financing initiatives, and rate structures that will decouple rates from volumetric sales.

Yet the economic downturn has taken a heavy toll on clean energy funding across the region, with raids undermining the progress of states who have been national leaders in efficiency. New Jersey, Connecticut and the District of Columbia are taking millions in ratepayer funds to bridge budget deficits. In New York, Maryland, New Jersey and most recently New Hampshire, huge chunks of Regional Greenhouse Gas Initiative (RGGI) auction proceeds are being diverted for the same purpose. In some cases, states are using Recovery Act funding to back-fill these raids, a clear violation of agreements by governors that stimulus fund should be used to supplement and not supplant existing funding.

There's no doubt that we're in for a bit more rough sailing as the economy recovers. But as always, NEEP maintains that investing in energy efficiency is a key strategy to drive that recovery - creating jobs and putting money back in people's pockets, while making strides towards policy goals aimed at capturing all cost-effective efficiency, increasing system reliability and curbing harmful emissions.

These raids point to worrisome trends, and underscore the need to safeguard funding and prevent back-sliding on the many gains of our region's efficiency efforts. We at NEEP look forward to working with many of you to ensure forward movement on efficiency policies, programs and funding. Thank you for reading, and please let us know what you think.

Natalie Hildt
Public Policy Outreach Manager
nhildt@neep.org