Commercial Buildings and Technology Initiative

Energy Efficiency Programs and Procurement

Northeast states in recent years have enacted several milestone policies to mandate the procurement of all cost effective energy efficiency before turning to traditional fossil fuel generation, have established aggressive new energy efficiency resource standards or have otherwise approved significantly higher budgets for energy efficiency programs. (For details, see state-by-state activities in navigation box to the right.)

Energy Efficiency Programs and Procurement

While legislation and other directives can set an important tone for how states will address energy efficiency to meet resource needs, NEEP also understands the importance of following such policies through to be sure that related regulatory directives match the intent of the legislation.

With regard to the procurement of all cost effective energy efficiency some roadblocks have been encountered with regard to the implementation of such policies by state energy regulators, or through concerns raised about the impact on utility rates from such procurement policies.

NEEP works with our partners, allies and other stakeholders to develop or access effective research and analysis to bolster the case for the procurement of all cost-effective energy efficiency, specifically in the context of regulator concerns about the cost impact on ratepayers.

Energy Efficiency Programs and Procurement

In recent months NEEP has advocated in relevant proceedings or circumstances for full implementation of mandates to procure all cost effective energy efficiency; for the allocation of committed proceeds from the Regional Greenhouse Gas Initiative (RGGI) to energy efficiency programs; and for the recognition of energy efficiency as a first order resource to meet state and regional economic, energy and environmental needs and goals.

NEEP made formal written comments in protest of plans by Gov. Martin O'Malley of Maryland and Gov. M. Jodi Rell of Connecticut to divert proceeds from their states' RGGI auctions to purposes other than what had been originally agreed to and which were outside of the spirit of the initial RGGI accord between the states. In NEEP's view, the greatest consumer benefit and the the most effective method for reducing states' share of carbon as agreed to under RGGI is to invest the RGGI proceeds in cost-effective energy efficiency measures.

In addition, NEEP filed formal comments in protest of Rell's plans to divert millions of dollars from the Connecticut Energy Efficiency Fund (CEEF) to the state's general fund to help address its budget gap.

NEEP also registered its opposition to proposed legislation to eliminate the Office of Consumer Counsel in Connecticut, noting the office's long record of assisting ratepayers to access energy efficiency resources.

Elsewhere in Connecticut, NEEP registered its strong support for the Integrated Resource Plan as developed by Connecticut Light and Power and The United Illuminating Company, in compliance with Act 07-242, An Act Concerning Electricity and Energy Efficiency. In particular, NEEP commended the Plan's foresighted finding that "[l][ong-term and sustained funding is required to ramp-up and maintain the infrastructure needed to achieve Expanded [energy efficiency.]" NEEP also provided several recommendations on specific program elements of the plan.

In Maine, NEEP continues to provide input into discussions over the future administration of the state's energy efficiency programs. Last fall, NEEP submitted to the Public Utility Commission a conceptual proposal to create a new administrative model for the state's efficiency programs that would remove administration from the PUC and house it with an independent, third-party administrator. This spring, NEEP offered similar comments at a hearing on a bill that would establish just such a new administrative model for the state.

In Massachusetts, NEEP is monitoring a number of working groups and other stakeholder activities leading up to the submittal of coordinated three-year energy efficiency program plans, which were filed on April 30. See the filings at: http://www.ma-eeac.org/plan430.htm.

NEEP has also joined with a number of other energy efficiency and environmental advocates in an effort to urge policymakers in Massachusetts to seize the tremendous opportunity being presented by the American Reinvestment and Recovery Act (ARRA) to substantial increase funding for energy efficiency programs and projects in the state. NEEP has also outlined its specific recommendations in a letter to DOER Commissioner Philip Guidice.  For a summary of the energy efficiency sections of the ARRA, see the article in NEEP Notes at http://www.neep.org/newsletter/1Q2009/stimulus.html.

In New Jersey, NEEP recently presented its comprehensive recommendations to the Board of Public Utilities regarding a best in class program portfolio to meet the requirements of the state's Energy Master Plan. The program portfolio was developed by NEEP through a collaborative process and includes a number of public policy recommendations to complement the aggressive new program approach. (See: http://www.neep.org/newsroom/NJfinalreport.pdf)

And in New York, staff is reviewing the latest draft State Energy Plan and is filing comments on the energy efficiency portions of that plan.