California Energy Efficiency Obligation

In 2014, the California government introduced an energy efficiency obligation for all sectors except transport, covering electricity and gas. The obligation seeks to achieve an energy savings of 6 092 GWh per year, and an incremental energy savings of 0.3% when compared to total fuel consumption. Obligated parties include electricity and natural gas investor-owned utilities. Publicly-owned electric utilities, accounting for over 25% of overall load in the state, also face statutory energy savings obligations. Efficiency targets for electricity and gas utilities are set based on a legal standard of "all potentially achievable cost-effective" efficiency savings. Current goals: electricity, average goal for IOUs of about 1.15% of retail sales electricity through 2024. Natural Gas: Incremental savings target of 0.56% through 2024. Targets are expected to double as a result of a new law - SB350. Eligible energy efficiency measures include lighting, advisory, HVAC, appliances, process pumps, air compressors, building retrofits, windows, and refrigeration. Calculation of measures is based on deemed savings. 4% of the statewide energy efficiency budget is dedicated to monitoring and evaluation, including M&V of programs implemented under California's obligation. The CPUC oversees monitoring and evaluation of utility programmes.

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