Report examines state policies on energy savings programs for low income households
A new report from the American Council for an Energy-Efficient Economy (ACEEE) found that most states do not require utilities to have energy savings targets for low-income or marginalized households.
The report revealed that roughly half of U.S. states require utilities to achieve energy savings targets – known as efficiency resource standards (EERS) — through their customer energy efficiency programs. However, among those 25 states and Washington DC, only three have targets for energy savings among low-income or historically marginalized households. Those three are Massachusetts, Pennsylvania, and Washington DC.
The report calls on state legislatures to remedy this by including this in their EERS policies. States can do this by requiring utilities to devote funding toward incentives for home efficiency improvements for low-income households.
“Energy efficiency can make a real difference in people’s lives, especially for the most vulnerable. States need to require that efficiency programs achieve minimum levels of energy savings for low-income and other underserved households,” Jasmine Mah, research analyst at ACEEE and a co-author of the report, said. “States that do not track energy savings among underserved households have no way of knowing if the resources invested in those households are benefiting them. Tracking energy savings data in addition to spending data allows states to tailor their programs to maximize their impact.”
Massachusetts is a leader in tracking equity metrics, the report found. The state requires utility efficiency programs to report their spending in environmental justice communities and among renters, households with limited English language proficiency, and minority- and woman-owned small businesses. Also, Pennsylvania requires that low-income customers account for at least 6 percent of utility efficiency programs’ total energy savings.
The report also revealed that seven states include equitable workforce development and procurement practices in their utility efficiency programs. It calls on states to provide job training for groups that have typically been underrepresented in the clean energy sector. Illinois is leading the way in this area, providing grants and loans to woman- and minority-owned businesses in the renewable energy and energy efficiency sectors.
Further, the report recommends that states not only solicit feedback from disinvested communities, but also set aside decision-making seats for representatives of those communities when designing and implementing energy programs.
The report also recommends funding to address barriers that prevent participation in efficiency programs, such as the need for “pre-weatherization” repairs. In Illinois, both Ameren and ComEd are required to invest at least 15 percent of their low-income efficiency budget on pre-weatherization work.
