Energy Efficiency Resource Standards (EERS) Workgroup

Purpose
The Energy Efficiency Resource Standards (EERS) Workgroup was established by the Energy Conservation and Efficiency Act of 2009 to assist the planning process and implementation of EERS energy reduction objectives and quantitative targets.

Background
On July 29, 2009, Governor Jack Markell signed SB 106, which became the Energy Conservation and Efficiency Act of 2009, into law. The legislation designates energy efficiency as a priority energy resource in the state that should be considered before other new supply-side resources are obtained. The law also encourages cost effective reductions in energy consumption and peak demand by establishing some of the most progressive energy use reduction targets in the country.

The legislation creates Energy Efficiency Resource Standards (EERS) which require a percentage reduction in energy use through energy efficiency and conservation measures. The goals are a 10 percent natural gas consumption savings and 15 percent electricity consumption and peak demand savings by 2015. A 2 percent reduction in electricity consumption and peak demand and a 1 percent natural gas savings are also required by 2011. Compliance is met by state electric and natural gas utilities, and the percentage savings are measured as a percentage of total retail sales.

The legislation establishes a workgroup tasked with completing a report on the feasibility and impacts of pursuing the EERS percentage reduction goals and providing recommendations to the Secretary of the Department of Natural Resources and Environmental Control for the planning and implementation of the policy. The report must be completed and submitted to the DNREC Secretary no later than December 31, 2010. The Secretary will issue regulations outlining compliance standards and procedures by the end of July, 2010.

The 11-member workgroup consists of the State Energy Coordinator and includes representatives of Delmarva Power & Light, Delaware Electric Cooperative, Chesapeake Utilities, the Delaware Municipal Electric Corporation, the Delaware Public Service Commission (PSC), the Public Advocate, the Delaware Sustainable Energy Utility (SEU), the Weatherization Assistance program manager, and two members of the public with experience representing, respectively, low-and moderate-income families and environmental concerns.

After the completion of the recommendations report, the workgroup will meet at least once yearly to develop and review annual savings targets and to assess the progress toward compliance with the quantitative energy savings targets.

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