Utility Energy Efficiency Vision Can Save Billions of Dollars While Fighting Climate Change

More than 60 energy, environmental and other organizations have collaborated on a new report that could save Americans more than $500 billion in energy costs over 25 years and reduce annual greenhouse gas emissions equivalent to those from 90 million vehicles. This report, the National Action Plan for Energy Efficiency Vision for 2025, provides a framework for states, utilities and other stakeholders to consider when seeking policies and programs to achieve all cost effective energy efficiency measures.

“Environmental responsibility is everyone’s responsibility – and today I’m pleased to see states, utilities and energy customers are taking this motto to heart,” said EPA Administrator Stephen L. Johnson. “By committing to conservation, Americans are making the vision for an energy efficient future a reality today.”

“Opportunities to increase and maximize energy efficiency in our homes, commercial buildings, and industrial facilities are both enormous and quantifiable and are a key component of the president’s robust energy initiatives,” Kevin Kolevar, DOE assistant secretary for Electricity Delivery and Energy Reliability, said. “The national action plan recognizes the role of prioritizing energy efficiency through incentive based programs and policies, which can reduce energy use, benefit our environment and add to a company’s bottom line.”

The action plan, launched in 2006, is facilitated by the Environmental Protection Agency and the Department of Energy. The plan provides five recommendations for helping states and utilities overcome policy, regulatory, and other barriers that limit investment in energy efficiency even when investment in more efficient homes, buildings and industries would cost less than new supply and would lead to overall lower energy bills. Along with the vision for 2025, the Action Plan Leadership Group released a number of ’how-to’ resources to help parties meet energy efficiency commitments and announced new commitments under the action plan from more than 30 organizations. The list of organizations and their new commitments can be found at: epa.gov/eeactionplan under Leadership Commitments.

The action plan is advancing the dialogue on removing barriers to energy efficiency as a resource to serve electricity customers and promoting policy and program best practices among gas and electric utilities, their regulators and partner organizations. Nearly 120 organizations have already taken action over the past year to make the action plan a reality. These commitments to energy efficiency from 42 utility commissions and state and local agencies, 34 utilities, 9 large-end-users, and nearly 40 other organizations have helped remove barriers to energy efficiency by establishing and supporting new energy efficiency programs, collaborating and the state and local levels, exploring policies to align utility incentives with cost-effective energy efficiency, educating stakeholders and meeting aggressive energy savings goals.

The action plan was developed by a leadership group of more than 60 organizations. The leadership group includes 30 electric and gas utilities, 17 state agencies, and 12 other organizations, with 24 organizations observing the work of the leadership group.