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States Leading the Charge for Energy Efficiency: A Closer Look at US Progress

In a tumultuous political landscape where climate change action has been sidelined, states across the US are stepping up to the plate to drive energy efficiency initiatives forward. With the federal government taking a backseat in this crucial arena, the responsibility now falls on state policymakers to spearhead efforts that reduce fossil fuel consumption and curb greenhouse gas emissions.

The American Council for an Energy-Efficient Economy (ACEEE) recently released a report highlighting the significant strides made by states in implementing energy-efficiency resource standards (EERS). These standards, established by legislatures or utility regulators, require utilities to execute programs aimed at cutting energy consumption each year. Unfortunately, only 26 states, along with the District of Columbia, have set such standards, leaving much room for improvement.

Jasmine Mah, a senior research analyst at the Council, emphasizes the need for more robust action, noting that since 2012, only three states have added EERS. Conversely, states like New Hampshire, Ohio, and Iowa have scaled back their commitments, signaling a concerning trend. Mah stresses the importance of state policymakers and regulators in reversing this decline, urging them to recognize the positive impacts of EERS implementation.

Barry Rabe, a political scientist at the University of Michigan, underscores the economic benefits associated with energy efficiency measures. While some states may prioritize efficiency less when energy supplies are abundant, Rabe points out that the decline in interest coincides with the surge in natural gas usage across the country.

Despite these challenges, many states have gone beyond basic policies to adopt “next-generation” initiatives aimed at reducing greenhouse gas emissions and serving low-income populations. While nearly all states with EERS have implemented at least one next-generation effort, only nine have fully embraced these programs, indicating ample room for growth.

Mah highlights that while low-income targets are common goals, few states address energy affordability concerns. The report showcases several states leading the charge in innovative energy efficiency programs, such as Illinois’ commitment to clean energy by 2050 and Massachusetts’ goal of installing half a million heat pumps by 2030.

President Trump’s recent efforts to repeal the 2022 Inflation Reduction Act may not impact state EERSs significantly, as they are primarily funded through utility bill fees. Justin Brant, utility program director at the Southwest Energy Efficiency Project, lauds this funding mechanism as an effective means to generate substantial funds for energy-efficiency initiatives.

Critics of Arizona’s EERS point to the costs incurred by customers, but data shows that investments in energy efficiency have yielded substantial returns. Brant notes that these programs benefit all customers, not just participants, illustrating the wide-reaching impact of energy efficiency measures.

Looking ahead, Brant suggests that states should consider implementing programs that encourage customers to stagger their daily energy usage, a practice known as time shifting. Lowering peak energy demand will be crucial as renewable energy sources play a larger role in the national energy grid.

As states forge ahead with energy efficiency efforts, it is clear that their commitment to sustainability and economic prosperity will shape the future of the nation’s energy landscape. By prioritizing innovative solutions and embracing next-generation initiatives, states are leading the way towards a cleaner, more sustainable energy future.