New efficiency standard could cut costs

The Energy Efficiency Resource Standard--introduced by a Massachusetts Congressman--could cut energy costs, energy use, and the effects of climate change.


The new Energy Efficiency Resource Standard (EERS)—introduced by Rep. Edward Markey (D-Mass.) on Feb. 4—could save consumer dollars and thwart the effects of climate change, according to the Alliance to Save Energy . Markey’s office claims the legislation—also known as the Save American Energy Act—would cost-effectively cut electricity and natural gas demand and, in combination with another Markey-authored bill creating a renewable electricity standard, create more than a half million jobs and save U.S. consumers more than $180 billion.

The EERS would require electric and gas utilities to reduce demand by 15% and 10%, respectively, by 2020 by helping utility customers make their homes and businesses more energy efficient. Utilities could count savings from appliance standards, building codes, and other government programs toward those targets. And while utilities would be responsible for meeting the energy efficiency requirements, they could help to achieve them by buying savings from states and other third parties such as Energy Service Companies.

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