1

 

State Energy Efficiency Resource Standards (EERS)

April 2015

An energy efficiency resource standard (EERS) is a long-term (3+ years), binding energy savings 

target for utilities or third-party program administrators. Savings are achieved through energy 

efficiency programs for customers. An EERS is one of the most effective ways for a state to 

guarantee long-term energy savings. In 2013, states with an EERS achieved incremental 

electricity savings of 1.1% of retail sales on average, compared to average savings of 0.3% in 

states without an EERS. 

Twenty-four1 states are currently implementing EERS policies requiring electricity savings

(Figure 1). Of these states, 15 also have EERS policies in place for natural gas. Seven of the 24 

states have requirements that utilities or third-party administrators achieve all cost-effective 

energy efficiency. 

Figure 1. States with electric EERS policies in place (as of April 2015).

 

1 This count includes 22 states with a standalone EERS policy and two states that allow energy efficiency to count 

toward renewable energy standards (RES). This count does not include Indiana and Ohio, where EERS policies have 

been eliminated. Additional states have some form of targets, but for the following reasons we do not consider them 

EERS: Florida (previous targets were underfunded, and recent targets are so low as to be meaningless); Utah, 

Missouri, and Virginia (voluntary standards with no binding requirement).
EERS POLICY BRIEF

Texas adopted the nation’s first EERS in 1999, and many states followed suit in the mid-2000s. 

These policies have contributed to notable energy and bill savings in many states. All of the topten energy-saving states in 2013 had an EERS policy in place.2 Furthermore, nearly every state 

with an EERS has met or surpassed their targets in recent years.

3

In early 2014, 26 states were implementing EERS policies. However, EERS policies in Indiana 

and Ohio were recently rolled back due to political aversion to mandatory clean energy policies. 

In these states, many utilities continue to run programs. However, with no clear policy in place 

to guide savings, these states are no longer included in our list of EERS policies. 

This policy brief summarizes each state electricity and natural gas EERS policy currently in 

place. Table 1 outlines current policy approaches for electricity EERS policies. Table 2 describes 

natural gas EERS policies. For a more in-depth look at individual state EERS policies, visit 

ACEEE’s State and Local Policy Database.

4

Table 1. Electricity EERS policy status by state

 State

 Year enacted

- Authority

 Applicability 

(% sales affected)5 Electricity energy efficiency resource standard Reference

1

Arizona

2010

Regulatory6

IOUs, Co-ops (~59%)

Incremental savings targets began at 1.25% of 

sales in 2011, ramping up to 2.5% in 2016 

through 2020 for cumulative annual electricity 

savings of 22% of retail sales, of which 2% may 

come from peak demand reductions.

Co-ops must meet 75% of targets.

Docket No. RE-00000C-09-

0427, Decision 71436

Docket No. RE-00000C-09-

0427, Decision 71819

2

Arkansas

2010

Regulatory

IOUs (~53%)

Annual reduction of 0.75% of total electric kWh 

sales in 2014 and 0.9% in 2015.

The Commission has withheld a ruling on targets 

for 2016-2017 pending a potential study.

Order No. 17, Docket No. 08-

144-U;

Order No. 1, Docket No. 13-

002-U

Order No. 7, Docket No. 13-

002-U

 

2 2013 is the most recent year for which complete data is available. See The 2014 State Energy Efficiency Scorecard 

(Gilleo et. al, 2014) for more details. http://aceee.org/research-report/u1408

3 See Energy Efficiency Resource Standards: A New Progress Report on State Experience (Downs and Cui, 2014) for more 

details: http://aceee.org/research-report/u1403

4 http://database.aceee.org/

5 This does not take into account whether large customers are eligible to opt-out of programs. For more information 

on large customer opt-out, see The 2014 State Energy Efficiency Scorecard (Gilleo et. al, 2014):

http://aceee.org/research-report/u1408

6 EERS policies under regulatory authority were set without legislation requiring specific savings levels or calling 

upon the state public utility commission to set savings targets.
EERS POLICY BRIEF

 State

 Year enacted

- Authority

 Applicability 

(% sales affected)5 Electricity energy efficiency resource standard Reference

3

California

2004 and 2009

Legislative7

IOUs (~78%)

Long-term goals of ~0.9% incremental savings

each year through 2020. However specific goals 

have been adjusted upward in recent years, to ~ 

1.1% of sales in 2015. Demand reduction of 

4,541 MW through 2020.

Utilities must pursue all cost-effective efficiency 

resources.

CPUC Decision 04-09-060;

CPUC Decision 08-07-047;

CPUC Decision 14-10-046

AB 995

4

Colorado

2007

Legislative

IOUs (~57%)

Black Hills follows PSCo incremental savings 

targets of 0.8% of sales in 2011, increasing to 

1.35% of sales in 2015. For the period 2015-

2020, PSCo must achieve incremental savings of 

at least 400 GWh per year.

Colorado Revised Statutes 40-

3.2-101, et seq. ; 

Docket No. 12A-100E Dec. 

R12-0900; 

Docket 10A-554EG

Docket No. 13A-0686EG Dec. 

C14-0731

5

Connecticut

2007 & 2013

Legislative

IOUs (~94%)

Targets equivalent to incremental savings of 

~1.4% per year through 2015.

Utilities must pursue all cost-effective efficiency 

resources.

Planning is currently underway for the 2016-2018 

Conservation and Load Management Plan.

Public Act No. 07-242

Public Act No. 13-298

2013-2015 Electric and 

Natural Gas Conservation and 

Load Management Plan

6

Hawaii

2004 and 2009

Legislative

Statewide goal (100%)

In 2009, transitioned away from a combined RPSEERS to a standalone EEPS goal to reduce 

electricity consumption by 4,300 GWh by 2030 

(equal to ~30% of forecast electricity sales, or 

1.4% incremental savings per year).

HRS §269-91, 92, 96

HI PUC Order, Docket 2010-

0037

7

Illinois

2007

Legislative

Utilities with over 

100,000 customers, 

Illinois DCEO (~88%)

Electric: Legislative targets of 0.2% incremental 

savings in 2008, ramping up to 2% in 2015 and 

thereafter. Annual peak demand reduction of 

0.1% through 2018.

Energy efficiency measures may not exceed an 

established cost-cap. As a result, regulators have 

approved lower targets in recent years, with 

incremental electric savings targets varying by 

utility from ~ 0.5% to 0.7% per year.

S.B. 1918

Public Act 96-0033

§ 220 ILCS 5/8-103

Case No. 13-0495

Case No. 13-0498

8

Iowa

2009

Legislative

IOUs (75%)

Electric: Incremental savings targets vary by utility 

from ~1.1-1.2% annually through 2018. 

Senate Bill 2386

Iowa Code § 476

Docket EEP-2012-0001

 

7 Legislation governing EERS policies may not include specific targets. In many cases, referenced legislation requires 

or explicitly enables the state public utility commission to set targets.
EERS POLICY BRIEF

 State

 Year enacted

- Authority

 Applicability 

(% sales affected)5 Electricity energy efficiency resource standard Reference

9

Maine8

2009

Legislative

Statewide goal (100%)

Electric savings of 20% by 2020, with incremental

savings targets of ~1.6% per year.

Efficiency Maine operates under an all costeffective mandate. 

Efficiency Maine Triennial Plan

H.P. 1128 – L.D. 1559

10

Maryland

2008

Legislative9

Statewide Goal (100%)

15% per-capita electricity use reduction goal by 

2015 (10% by utilities, 5% achieved 

independently). 15% reduction in per capita peak 

demand by 2015, compared to 2007. 

The next round of targets are currently under 

discussion. Utilities have submitted plans for 

2016-2018 with incremental targets of ~0.7% –

1.7% per year.

Md. Public Utility Companies 

Code § 7-211

MD PSC Dockets 9153-9157

11

Massachusetts

2009

Legislative

IOUs, Co-ops, Muni’s, 

Cape Light Compact 

(~86%)

Incremental savings of 1.4% in 2010, 2.0% in 

2011; 2.4% in 2012; 2.5% in 2013 increasing to 

2.6% by 2015.

Planning is currently underway for the 2016-2018 

cycle.

All cost-effective efficiency requirement.

D.P.U. Order 09-116 through 

09-128

D.P.U. Order 12-100 through 

12-111

M.G.L. ch. 25, § 21; 

12

Michigan

2008

Legislative

Statewide Goal (100%)

0.3% incremental savings in 2009, ramping up to 

1% in 2012 and each year thereafter.

Act 295 of 2008

13

Minnesota

2007

Legislative

Statewide Goal (100%)

1.5% incremental savings in 2010 and each year 

thereafter. Minn. Stat. § 216B.241

14

Nevada

2005 and 2009

Legislative

IOUs (~62%)

20% of retail electricity sales to be met by 

renewables and energy efficiency by 2015, and 

25% by 2025. Energy efficiency may meet a 

quarter of the standard through 2014, but is 

phased out of the RPS by 2025.

NRS 704.7801 et seq.

NRS 704.7801 as amended

15

New Mexico

2008 and 2013

Legislative

IOUs (68%)

5% reduction from 2005 total retail electricity 

sales by 2014, and an 8% reduction by 2020. N.M. Stat. § 62-17-1 et seq.

 

8 The Maine Public Utilities Commission voted in March 2015 to restrict funding for Efficiency Maine beginning in 

2016. This may result in the inability of Efficiency Maine to operate under its all cost-effective efficiency mandate, at 

which point we would no longer consider Maine to have an EERS in place.

9 Targets for 2016 and beyond will be determined by the Maryland Public Service Commission.
EERS POLICY BRIEF

 State

 Year enacted

- Authority

 Applicability 

(% sales affected)5 Electricity energy efficiency resource standard Reference

16

New York

2008

Regulatory

Statewide Goal (100%)

Electric: Incremental savings of ~1% per year 

through 2015.

EEPS targets through 2015 applied to utilities and 

NYSERDA. Current REV proceeding includes utility 

targets equivalent to ~ 0.4% in 2016 but no 

NYSERDA targets. Future targets are currently 

under discussion.

NY PSC Order, Case 07-M0548

NY PSC Order, Case 07-M0748

NY PSC Case 14-M-0101

17

North Carolina

2007

Legislative

Statewide Goal (100%)

Renewable Energy and Energy Efficiency Portfolio 

Standard (REPS) requires renewable generation 

and/or energy savings of 6% by 2015, 10% by 

2018, and 12.5% by 2021 and thereafter. Energy 

efficiency is capped at 25% of target, increasing to 

40% in 2021 and thereafter.

N.C. Gen. Stat. § 62-133.8

04 NCAC 11 R08-64, et seq.

18

Oregon

2010

Regulatory

Energy Trust of Oregon 

(~70%)

Incremental targets average ~1.3% of sales 

annually for the period 2015-2019. 

Energy Trust of Oregon 2015-

2019 Strategic Plan

Grant Agreement between 

Energy Trust of Oregon and OR 

PUC

19

Pennsylvania

2004 and 2008

Legislative

Utilities with over 

100,000 customers 

(~93%)

3% cumulative savings from 2009 to 2013; 

~2.3% cumulative savings from 2014-2016. EERS 

includes peak demand targets.

Proposed targets for the phase include 

incremental savings of ~0.8% per year, but a final 

order has not yet been issued.

Energy efficiency measures may not exceed an 

established cost-cap.

66 Pa C.S. § 2806.1; 

PUC Order Docket No. M-2008-

2069887; 

PUC Implementation Order 

Docket M-2012-2289411

PUC Tentative Implementation 

Order Docket M-2014-

2424864

20

Rhode Island

2006

Legislative

IOUs, Muni’s (~99%)

Electric: Incremental savings of 2.5% in 2015

2.55% in 2016, and 2.6% in 2017. EERS includes 

demand response targets.

Utilities must acquire all cost-effective energy 

efficiency.

R.I.G.L § 39-1-27.7

Docket No. 4443

21

Texas

1999 and 2007

Legislative

IOUs (~73%)

20% incremental load growth in 2011 (equivalent 

to ~0.10% annual savings); 25% in 2012, 30% in 

2013 onward. Peak demand reduction targets of 

0.4% compared to previous year.

Energy efficiency measures may not exceed an 

established cost cap.

Senate Bill 7;

House Bill 3693;

Substantive Rule § 25.181

Senate Bill 1125

22

Vermont

2000

Legislative

Efficiency Vermont, 

Burlington Electric

(100%)

Average incremental electricity savings of about 

2.1% per year from 2015 – 2017. EERS includes 

demand response targets.

Energy efficiency utilities must set budgets at a 

level that would realize all cost-effective energy 

efficiency.

30 V.S.A. § 209; 

VT PSB Docket EEU-2010-06

Efficiency Vermont Triennial 

Plan 2015-17
EERS POLICY BRIEF

 State

 Year enacted

- Authority

 Applicability 

(% sales affected)5 Electricity energy efficiency resource standard Reference

23

Washington

2006

Legislative

IOUs, Co-ops, Muni’s 

(~81%)

Biennial and Ten-Year Goals vary by utility. Law 

requires savings targets to be based on the 

Northwest Power Plan, which estimates potential 

incremental savings of about 1.5% per year

through 2030 for Washington utilities. 

All cost-effective conservation requirement.

Ballot Initiative I-937

WAC 480-109

WAC 194-37

24

Wisconsin

2011

Legislative

Statewide Goal (100%)

Focus on Energy targets include incremental 

electricity savings of ~0.77% of sales per year in 

2015-2018

Energy efficiency measures may not exceed an 

established cost-cap.

Order, Docket 5-GF-191

Order 9501-FE-120

2005 Wisconsin Act 141

Table 2. Natural gas EERS policy status by state

 State

 Year enacted

- Authority

 Applicability 

(% sales affected) Natural gas energy efficiency resource standard Reference

1

Arizona

2010

Regulatory

IOUs (~85%)

~0.6% incremental savings per year (for 

cumulative savings of 6% by 2020). 

Docket No. RG-00000B-09-

0428 Dec. No. 71855

2

Arkansas

2010

Regulatory

IOUs (~60%)

Annual reduction of 0.40% in 2014 and 0.5% in 

2015. 

The Commission has withheld a ruling on targets 

for 2016-2017 pending a potential study.

Order No. 15, Docket No. 08-

137-U

Order No. 1, Docket No. 13-

002-U

Order No. 7, Docket No. 13-

002-U

3

California

2004 and 2009

Legislative

IOUs (~82%)

619 gross MMTh between 2012 and 2020.

Utilities must pursue all cost-effective efficiency 

resources.

CPUC Decision 04-09-060;

CPUC Decision 08-07-047;

CPUC Decision 14-10-046

AB 995

4

Colorado

2007

Legislative

IOUs (~72%)

Savings targets commensurate with spending 

targets (at least 0.5% of prior year’s revenue).

Colorado Revised Statutes 40-

3.2-101, et seq. ; 

Docket 10A-554EG

Docket No. 13A-0686EG Dec. 

C14-0731
EERS POLICY BRIEF

 State

 Year enacted

- Authority

 Applicability 

(% sales affected) Natural gas energy efficiency resource standard Reference

5

Connecticut

2007 & 2013

Legislative

IOUs (100%)

Average incremental savings of ~60 MMTherms

per year through 2015.

Utilities must pursue all cost-effective efficiency 

resources.

Planning is currently underway for the 2016-2018 

Conservation and Load Management Plan.

Public Act No. 13-298

2013-2015 Electric and 

Natural Gas Conservation and 

Load Management Plan

6

Illinois

2007

Legislative

Utilities with over 

100,000 customers, 

Illinois DCEO (~88%)

8.5% cumulative savings by 2020 (0.2% 

incremental savings in 2011, ramping up to 1.5% 

in 2019).

Energy efficiency measures may not exceed an 

established cost-cap. As a result, regulators have 

approved lower targets in recent years, with 

incremental electric savings targets varying by 

utility from ~ 0.5% to 0.7% per year.

S.B. 1918

Public Act 96-0033

§ 220 ILCS 5/8-103

Case No. 13-0495

Case No. 13-0498

7

Iowa

2009

Legislative

IOUs (100%)

Incremental savings targets vary by utility, ~0.66% 

-1.2% annually through 2018.

Senate Bill 2386

Iowa Code § 476

Docket EEP-2012-0001

8

Maine10

2009

Legislative

Efficiency Maine (100%)

Incremental savings of ~0.3% per year through 

2016.

Efficiency Maine operates under an all costeffective mandate. 

Efficiency Maine Triennial Plan

H.P. 1128 – L.D. 1559

9

Massachusetts

2009

Legislative

IOUs, Co-ops, Muni’s 

(100%)

Incremental savings of 0.63% in 2010, 0.83% in 

2011; 1.0% in 2012; 1.1% in 2013 increasing to 

1.15% by 2015.

Planning is currently underway for the 2016-2018 

cycle.

All cost-effective efficiency requirement.

D.P.U. Order 09-121 through 

09-128

D.P.U. Order 12-100 through 

12-111

M.G.L. ch. 25, § 21; 

10

Michigan

2008

Legislative

Statewide Goal (100%)

0.10% incremental l savings in 2009, ramping up 

to 0.75% in 2012 and each year thereafter.

Act 295 of 2008

11

Minnesota

2007

Legislative

Statewide Goal (100%)

0.75% incremental savings per year in 2010-

2012; 1% incremental savings in 2013 and each 

year thereafter.

Minn. Stat. § 216B.241

 

10 The Maine Public Utilities Commission voted in March 2015 to restrict funding for Efficiency Maine beginning in 

2016. This may result in the inability of Efficiency Maine to operate under its all cost-effective efficiency mandate, at 

which point we would no longer consider Maine to have an EERS in place.
EERS POLICY BRIEF

 State

 Year enacted

- Authority

 Applicability 

(% sales affected) Natural gas energy efficiency resource standard Reference

12

New York

2008

Regulatory

Companies with 

14,000+ customers

(~100%)

Incremental savings of ~0.5% per year through 

2015.

EEPS targets through 2015 applied to utilities and 

NYSERDA. Current REV proceeding includes utility 

targets equivalent to ~ 0.4% in 2016 but no 

NYSERDA targets. Future targets are currently 

under discussion.

NY PSC Order, Case 07-M0548

NY PSC Case 14-M-0101

13

Oregon

2010

Regulatory

Energy Trust of Oregon 

(~89%)

0.3% of sales annually for the period 2015-2019.

Energy Trust of Oregon 2015-

2019 Strategic Plan

Grant Agreement between 

Energy Trust of Oregon and OR 

PUC

14

Rhode Island

2006

Legislative

IOUs, Muni’s (100%)

Incremental savings of 1% in 2015, 1.05% in

2016, and 1.1% in 2017.

Utilities must acquire all cost-effective energy 

efficiency.

R.I.G.L § 39-1-27.7

Docket No. 4443

15

Wisconsin

2011

Legislative

Statewide Goal (100%)

Focus on Energy targets include incremental

national gas savings of ~0.6% of sales per year in 

2015-2018.

Energy efficiency measures may not exceed an 

established cost-cap.

Order, Docket 5-GF-191

Order 9501-FE-120

2005 Wisconsin Act 141

For more information on energy efficiency resource standards, please visit 

http://aceee.org/topics/energy-efficiency-resource-standard-eers

ACEEE Contacts:

Annie Gilleo Maggie Molina

agilleo@aceee.org mmolina@aceee.org

(202) 507-4002 (202) 507-4004