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Incentives/Policies for Renewables & Efficiency

Printable Version
Energy Efficiency Resource Standard   

Last DSIRE Review: 01/07/2013
Program Overview:
State: California
Incentive Type: Energy Efficiency Resource Standard
Eligible Efficiency Technologies: Custom/Others pending approval
Applicable Sectors: Investor-Owned Utility, Gas Utilities
Electric Sales ReductionVaries by utility (see below)
Electric Peak Demand ReductionVaries by utility (see below)
Natural Gas Sales ReductionVaries by utility (see below)
Web Site:
Authority 1:
CA Public Utilities Code § 9615
Authority 2:
CA Public Resources Code § 25310
Authority 3:
Date Enacted:
CPUC Decision No. 08-07-047
Authority 4:
Date Enacted:
CPUC Decision No. 09-09-047

The California Legislature emphasized the importance of energy efficiency and established broad goals with the enactment of Assembly Bill 2021 of 2006. The bill calls for a 10% reduction in forecasted electricity consumption within 10 years. The bill also requires the California Energy Commission (CEC), the California Public Utilities Commission (CPUC) and other interested parties to develop a statewide estimate of all cost-effective electricity and natural gas savings and to develop efficiency savings and demand reduction targets for the next 10 years. This study must be updated every three years.

Having already developed interim efficiency goals for each of the utilities from 2004 through 2013, the CPUC developed new goals in 2008 for years 2012 through 2020. The goals consist of separate electricity savings and demand reduction requirements for each of the three investor-owned electrical utilities and energy savings requirements for the state's three gas utilities.

Electricity Savings Requirements

  2012 2013 2014 2015 2016 2017 2018 2019 2020
PG&E 1,114 GWH 1,277 GWH 793 GWH 765 GWH 787 GWH 797 GWH 814 GWH 816 GWH 817 GWH
SCE 1,093 GWH 1,139 GWH 784 GWH 750 GWH 778 GWH 789 GWH 802 GWH 805 GWH 808 GWH
SDGE 158 GWH 214 GWH 164 GWH 154 GWH 156 GWH 159 GWH 162 GWH 162 GWH 163 GWH
Total 2,365 GWH 2,630 GWH 1,741 GWH 1,669 GWH 1,720 GWH 1,745 GWH 1,778 GWH 1,783 GWH 1,788 GWH

Demand Reduction Requirements

  2012 2013 2014 2015 2016 2017 2018 2019 2020
PG&E 251 MW 236 MW 228 MW 241 MW 257 MW 258 MW 270 MW 270 MW 269 MW
SCE 239 MW 240 MW 189 MW 193 MW 213 MW 215 MW 222 MW 222 MW 223 MW
SDGE 31 MW 41 MW 38 MW 38 MW 40 MW 40 MW 41 MW 42 MW 42 MW
Total 521 MW 517 MW 455 MW 472 MW 510 MW 514 MW 533 MW 533 MW 534 MW

Natural Gas Savings Requirements

  2012 2013 2014 2015 2016 2017 2018 2019 2020
PG&E 17.1 MTherms 25.1 MTherms 31 MTherms 32 MTherms 32 MTherms 31 MTherms 32 MTherms 32 MTherms 33 MTherms
SoCal Gas 32 MTherms 36 MTherms 34 MTherms 35 MTherms 34 MTherms 33 MTherms 34 MTherms 34 MTherms 34 MTherms
SDGE 4.1 MTherms 5.7 MTherms 6 MTherms 6 MTherms 6 MTherms 6 MTherms 6 MTherms 6 MTherms 6 MTherms
Total 53.2 MTherms 66.8 MTherms 71 MTherms 73 MTherms 73 MTherms 70 MTherms 72 MTherms 73 MTherms 73 MTherms

The required energy savings will be primarily met through incentive programs for utility customers, but utilities can also count the energy savings resulting from these other policies:

  • Sate building code
  • Federal and state appliance standards
  • Statewide market transformation efforts

Public utilities in California are not regulated by the CPUC. Still, Assembly Bill 2021 requires them to pursue energy efficiency as well. The law required them by June 1, 2007 to identify all cost-effective energy efficiency and demand reduction possibilities, and to establish energy reduction goals for the next 10 years. Public utilities are required to update these studies every three years and to submit them to the CEC.

  Terrie Prosper
California Public Utilities Commission
State Building
505 Van Ness Avenue
San Francisco, CA 94102
Phone: (415) 703-2160
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.