Energy Efficiency Resource Standards (EERS)
An energy efficiency resource standard (EERS) establishes long-term energy savings that utilities must meet through customer-based efficiency programs. These programs can include demand-side measures, like incentivizing high-efficiency appliances and building retrofits, or improvements in the utility’s distribution network. Targets can be set through legislation or by directing the state’s utility commission to set energy efficiency targets, and are usually updated on a three, four, or five-year cycle. Depending on the state, EERS administrators and/or utilities must typically develop plans outlining how they will meet the required energy savings, which are subject to approval by the state’s utility commission.
EERSs are normally set as mandatory targets or voluntary goals, but they can also happen when energy efficiency is an eligible resource in a state’s renewable portfolio standard or by incentivizing utilities to meet their own goals. Targets can range anywhere from 0.5% annual energy savings up to 3% in some states. EERSs can apply to electric and gas utilities, with states setting different savings targets depending on the utility type. Electric EERSs usually have higher energy savings targets than gas EERSs, and they are more common across states.
Key Resources
Advancing Equity through Energy Efficiency Resource Standards
Policy Explainer: Energy Efficiency Resource Standards
Environment Guide to Action: Energy Efficiency Programs and Resource Standards
Next Generation Energy Efficiency Resource Standards
Model States
Illinois
Electric utilities are required to achieve cumulative persisting annual savings of 21.5% by 2030 for utilities serving more than 3,000,000 retail customers, and cumulative persisting annual savings of 16% by 2030 for utilities serving between 500,000 and 3,000,000 retail customers. Savings are relative to average consumption over 2014-2016.
Gas utilities are required to achieve annual energy savings of 1.5% each year.
Maryland
Electric utilities are required to achieve a greenhouse gas (GHG) emissions reduction equivalent of annual electricity savings of 2% in 2024, 2.24% in 2025 and 2026, and 2.5% for each year after that. Utilities must achieve annual energy savings for low-income residential units for the 2024-2026 EmPOWER cycle, starting at 0.53% in 2024 and increasing to 1.0% in 2026.
Gas utilities are not subject to an EERS.
Minnesota
Investor-owned electric utilities are required to achieve annual savings equivalent to 1.75% of gross annual energy sales, and public electric utilities are required to achieve annual savings equivalent to 1.5% of gross annual energy sales.
Investor-owned and public gas utilities are required to achieve annual savings equivalent to 1.0% of gross annual energy sales.
New Jersey
Electric utilities are required to achieve energy savings equivalent to 1.31% in 2024, 1.66% in 2025, 2% in 2026, and 2% in 2027.
Gas utilities are required to achieve energy savings equivalent to 0.61% in 2024, 0.68% in 2025, 0.75% in 2026, and 0.75% in 2027.
Energy Efficiency Resource Standards (EERS) By State
| Status | State Sort descending | Region | Components | YR Enacted | |
|---|---|---|---|---|---|
| Not Enacted |
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Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
Southeast | |||
| Not Enacted |
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Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
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West | |||
| Enacted |
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Electric utilities are required to achieve annual 1.3% energy savings for 2023-2025, and a 35% reduction in 2020 peak demand by 2030. Gas utilities are not subject to an EERS. Establishing Policies
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|
Southwest | 2022 | ||
| Enacted |
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Electric utilities are required to achieve 1.2% energy savings for 2024-2026, relative to 2022 sales. Gas utilities are required to achieve 0.5% energy savings for 2024-2026, relative to 2022 sales. Establishing Policies
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|
Southeast | 2023 | ||
| Enacted |
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Electric utilities are required to achieve savings targets ranging from 1737.3 gigawatt hours (GWh) to 8,482.8 GWh for 2024-2035, depending on the utility. Gas utilities are required to achieve savings targets ranging from 17.1 million metric therms (MMTherms) to 189.3 MMTherms for 2024-2035, depending on the utility. Establishing Policies
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|
West | 2023 | ||
| Enacted |
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Electric utilities are required to reduce retail system peak demand by 5% by 2028 relative to 2018 levels, and achieve annual energy savings of 440 gigawatt hours (GWh) for 2024-2026. Gas utilities are required to achieve annual energy savings of 814,000 dekatherms (Dth) in 2024, 860,000 Dth in 2025, and 903,000 Dth in 2026. Establishing Policies
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|
West | 2017 | ||
| Enacted |
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Electric utilities are required to achieve energy savings of 524 gigawatt hours (GWh) for 2022-2024. Gas utilities are required to achieve energy savings of 1,424 million cubic feet (MMcf) for 2022-2024. Establishing Policies
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|
Northeast | 2022 | ||
| Enacted |
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Electric and gas utilities are subject to voluntary energy savings targets, which are determined by the Delaware Energy Efficiency Advisory Council. Establishing Policies
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|
Southeast | 2014 | ||
| Not Enacted |
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Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
Southeast | |||
| Not Enacted |
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Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
Southeast | |||
| Enacted |
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Electric utilities are required to achieve annual savings equivalent to 1.4% of electricity sales; utilities must achieve a 30% reduction in electricity usage by 2030, relative to a 2008 baseline. Gas utilities are not subject to an EERS. Establishing Policies
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|
West | 2020 | ||
| Not Enacted |
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Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
West | |||
| Enacted |
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Electric utilities are required to achieve cumulative persisting annual savings of 21.5% by 2030 for utilities serving more than 3,000,000 retail customers, and cumulative persisting annual savings of 16% by 2030 for utilities serving between 500,000 and 3,000,000 retail customers. Savings are relative to average consumption over 2014-2016. Gas utilities are required to achieve annual energy savings of 1.5% each year. Establishing Policies
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|
Midwest | 2021 | ||
| Not Enacted |
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Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
Midwest | |||
| Enacted |
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Electric and gas utilities are subject to utility-specific energy savings targets, as approved by the Iowa Utilities Board. Establishing Policies
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|
Midwest | 2022 | ||
| Not Enacted |
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Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
Midwest | |||
| Not Enacted |
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Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
Southeast | |||
| Enacted |
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Electric and gas utilities are required to achieve energy savings equivalent to 0.4% of 2020-2024 average annual energy sales in 2026, increasing 0.05% each year 2026-2029 to reach 0.55% energy savings by 2029. Establishing Policies
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|
Southeast | 2023 | ||
| Enacted |
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Electric utilities are required to achieve energy savings equivalent to 175,115 megawatt-hours (MWh) in 2023, 143,993 MWh in 2024, and 145,035 MWh in 2025. Gas utilities are required to achieve energy savings equivalent to 135,389 million British thermal units (MMBtu) in 2023, 78,776 MMBtu in 2024, and 77,907 MMBtu in 2025. Establishing Policies
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|
Northeast | 2022 | ||
| Enacted |
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Electric utilities are required to achieve a greenhouse gas (GHG) emissions reduction equivalent of annual electricity savings of 2% in 2024, 2.24% in 2025 and 2026, and 2.5% for each year after that. Utilities must achieve annual energy savings for low-income residential units for the 2024-2026 EmPOWER cycle, starting at 0.53% in 2024 and increasing to 1.0% in 2026. Gas utilities are not subject to an EERS. Establishing Policies
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|
Southeast | 2024 | ||
| Enacted |
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Electric utilities are required to reduce cumulative greenhouse gas (GHG) emissions by 504,000 metric tons for 2022-2024. Gas utilities are required to reduce cumulative GHG emissions by 341,000 metric tons for 2022-2024. Establishing Policies
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|
Northeast | 2021 | ||
| Enacted |
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Electric utilities are required to achieve annual energy savings equivalent to 1% of preceding year’s sales for electricity for 2017-2025, and 1.5% starting in 2026, with additional incentives for 2% savings or higher. Gas utilities are required to achieve annual energy savings equivalent to 0.75% of preceding year’s sales for natural gas for 2017-2025, and 0.875% starting in 2026. Establishing Policies
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|
Midwest | 2023 | ||
| Enacted |
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Investor-owned electric utilities are required to achieve annual savings equivalent to 1.75% of gross annual energy sales, and public electric utilities are required to achieve annual savings equivalent to 1.5% of gross annual energy sales. Investor-owned and public gas utilities are required to achieve annual savings equivalent to 1.0% of gross annual energy sales. Establishing Policies
Empty column
|
Midwest | 2021 | ||
| Not Enacted |
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Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
Southeast | |||
| Enacted |
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Electric utilities are subject to a voluntary annual energy savings targets of 1.9%. Gas utilities are not subject to an EERS. Establishing Policies
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|
Midwest | 2018 | ||
| Not Enacted |
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Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
West | |||
| Not Enacted |
Empty column
Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
Midwest | |||
| Enacted |
Empty column
Electric utilities are required to achieve annual energy savings equivalent to 1.5% of retail electricity sales in 2016 for 2021-2025. Gas utilities are not subject to an EERS. Establishing Policies
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|
West | 2017 | ||
| Enacted |
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Electric utilities are required to achieve energy savings equivalent to 2.84% of 2022 delivery sales for 2024-2026. Gas utilities are required to achieve energy savings equivalent to 2.04% of 2022 delivery sales for 2024-2026. Establishing Policies
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|
Northeast | 2023 | ||
| Enacted |
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Electric utilities are required to achieve energy savings equivalent to 1.31% in 2024, 1.66% in 2025, 2% in 2026, and 2% in 2027. Gas utilities are required to achieve energy savings equivalent to 0.61% in 2024, 0.68% in 2025, 0.75% in 2026, and 0.75% in 2027. Establishing Policies
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|
Northeast | 2023 | ||
| Enacted |
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Electric utilities are required to achieve energy savings equivalent to 5% of 2020 total retail electricity sales between 2021-2025. The Public Regulation Commission must set savings targets for 2026-2030. Gas utilities are not subject to an EERS. Establishing Policies
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|
Southwest | 2019 | ||
| Enacted |
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Electric utilities are required to achieve energy savings equivalent to 3% of electricity sales by 2025. Gas utilities are required to achieve energy savings equivalent to 1.3% of natural gas sales by 2025. Establishing Policies
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|
Northeast | 2018 | ||
| Enacted |
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Public electric utilities in the state must obtain renewable energy power and energy efficiency savings of 12.5% of 2020 retail sales in 2021 and thereafter. 40% of this requirement can be met with energy efficiency measures annually. Gas utilities are not subject to an EERS. Establishing Policies
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|
Southeast | 2007 | ||
| Not Enacted |
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Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
Southwest | |||
| Enacted |
Empty column
Electric and gas utilities were subject to quantitative energy savings requirements between 2015 and 2019. The 2020-2024 Strategic Plan replaced quantitative energy savings and generation goals with progress indicators across five focus areas that guide energy efficiency investments through an ongoing, iterative analysis of progress in these areas. Establishing Policies
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|
West | 2019 | ||
| Enacted |
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Electric utilities are required to achieve a statewide energy savings target for 2021-2016 that is equivalent to 3.1% of 2009-2010 statewide energy sales. Energy savings targets vary by utility, ranging from 2.4% to 3.5%. Gas utilities are not subject to an EERS. Establishing Policies
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|
Northeast | 2020 | ||
| Enacted |
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Electric utilities are required to achieve total energy savings equivalent to 1,397,644 lifetime megawatt-hours (MWh) in 2024, 1,401,610 lifetime MWh in 2025, and 1,413,953 lifetime MWh in 2026. Gas utilities are required to achieve total energy savings equivalent to 7,058,839 lifetime million British thermal units (MMBtu) in 2024, 7,090,690 lifetime MMBtu in 2025, and 7,119,585 lifetime MMBtu in 2026. Establishing Policies
Empty column
|
Northeast | 2023 | ||
| Not Enacted |
Empty column
Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
Southeast | |||
| Enacted |
Empty column
Electric utilities are required to achieve annual energy savings of 0.4% of peak demand. Gas utilities are not subject to an EERS. Establishing Policies
Empty column
|
Southwest | 2011 | ||
| Not Enacted |
Empty column
Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
West | |||
| Enacted |
Empty column
Electric utilities are required to achieve energy savings equivalent to 204,000 megawatt hours (MWh) for 2024-2026. Gas utilities are required to achieve energy savings equivalent to 381,300 million British thermal units (MMBtu) for 2024-2026. Establishing Policies
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|
Northeast | 2023 | ||
| Enacted |
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Phase 1 electric utilities are required to achieve 2% energy savings by 2025 and Phase 2 utilities are required to achieve 5% savings by 2025, relative to 2019 sales. The State Corporation Commission will establish efficiency savings targets for 2026–2028. Gas utilities are not subject to an EERS. Establishing Policies
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|
Southeast | 2024 | ||
| Enacted |
Empty column
Electric and gas utilities are subject to utility-specific energy savings targets, as approved by the Washington Utilities and Transportation Commission. Establishing Policies
Empty column
|
West | 2019 | ||
| Not Enacted |
Empty column
Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
Southeast | |||
| Enacted |
Empty column
Electric utilities are required to achieve statewide energy savings equivalent to 31,676,270 gross life cycle megawatt-hours (MWh) for 2023-2026. Gas utilities are required to achieve statewide energy savings equivalent to 776,085,000 gross life cycle therms for 2023-2026. Establishing Policies
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|
Midwest | 2022 | ||
| Not Enacted |
Empty column
Energy efficiency resource standards (EERS) establish targets and deadlines for utilities to reduce electricity demand through efficiency or "demand side" programs. Empty column
|
West |