Report, Next Generation Energy Efficiency Resource Standards Update

This report studies what are termed “next generation” elements of energy efficiency resource standards. Of the 26 states with an EERS, 23 (including DC) have next generation features to use the EERS to help achieve additional goals. These include:

1. Mandatory emissions reduction targets or a decarbonization goal
2. Electrification, including enabling and encouragement policies and sometimes explicit targets
3. Minimum targets for underserved customers, such as low-income households
4. Energy burden maximums or affordability provisions

In addition, a few states have additional EERS provisions, such as peak demand savings (a key feature of the Texas EERS) and requirements for measures with long-term savings (e.g., a provision in the Illinois EERS).

Case studies are provided for five states (Illinois, Massachusetts, Michigan, Minnesota, and New York) with long-term EERSs that include substantial next generation features. In these case studies, the report highlights substantial low-income and electrification progress in Massachusetts and New York and growing efforts in these areas in the other case study states.

The report makes recommendations for efforts that can be led by legislators, regulators, or other key parties, such as state energy offices and energy efficiency organizations.