DOE and EPA Release an Energy Efficiency Action Plan for States

DOE and the U.S. Environmental Protection Agency (EPA) have released an updated version of the National Action Plan Vision for 2025: A Framework for Change, which lays out a proposed energy efficiency action plan for state policy makers.

If implemented by all states, the plan could lower energy demand across the country by 50%, achieve more than $500 billion in net savings over the next 20 years, and reduce annual greenhouse gas emissions equivalent to those from 90 million vehicles.

The report, which was released under the National Action Plan for Energy Efficiency initiative, was produced by more than 60 energy, environmental, and state policy leaders from across the country. The updated action plan encourages investment in low-cost energy efficiency programs and shows the progress that the states are making toward their goals, while identifying areas for additional progress. The report is accompanied by two technical assistance documents that offer cost-effectiveness tests for energy efficiency programs and best practices for providing data to businesses.

The National Action Plan for Energy Efficiency initiative began in 2005, and is directed by a leadership group of 30 electric and gas utilities, 20 state agencies, and 12 other organizations. The initiative provides guidance to the states to help electric and natural gas ratepayers increase energy efficiency while saving money. More than 120 organizations have endorsed the original recommendations of the action plan.

States, utilities, and other organizations are currently spending about $2 billion per year on energy efficiency programs, which have saved energy customers nearly $6 billion annually. In terms of policy, about one-third of states have established energy savings targets and addressed utility disincentives for energy efficiency, while about half have established energy efficiency programs for key classes of customers and have reviewed and undated their building codes.

See the DOE press release, the full version of the action plan (PDF 622 KB), the executive summary of the action plan (PDF 290 KB), and the National Action Plan for Energy Efficiency page on the EPA Web site.

EPA Sets Renewable Fuel Requirement of 10.21% for 2009

The EPA announced on Monday that the 2009 renewable fuel standard (RFS) will require most refiners, importers, and non-oxygenate blenders of gasoline to displace 10.21% of their gasoline with renewable fuels such as ethanol. That requirement aims to ensure that at least 11.1 billion gallons of renewable fuels will be sold in 2009, in keeping with the targets established by the Energy Independence and Security Act of 2007, which President Bush signed into law in December 2007. While the RFS requirement is increasing by about 23% - from 9 billion gallons in 2008 to 11.1 billion gallons in 2009 - the percentage requirement is increasing by nearly a third, from 7.76% in 2008 to 10.21% in 2009.

The larger relative increase in the percentage requirement reflects the fact that fuel consumption is expected to be lower in 2009, so a greater percentage of renewable fuel is needed to reach 11.1 billion gallons of renewable fuels. Based on data from DOE's Energy Information Administration, the EPA anticipates that 138.47 billion gallons of gasoline blends will be sold in 2009 in the 48 contiguous states plus Hawaii (Alaska doesn't participate in the program). That's down from the 144.5 billion gallons of blended gasoline that the EPA expected to be sold in those 49 states this year. See the EPA press release and the pre-publication version of the accompanying Federal Register notice (PDF 68 KB).