,,ii  #aad? ,,congress  #a/ ,session    
,s4 #ajfc  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,april #bb1 #bjae,mr4  
,frank5 introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,en]gy & ,natural ,res\rces  ,a ,,bill  
,to am5d title ,,vi ( ! ,public ,utility
 ,regulatory ,policies ,act ( #aigh to  
e/abli% a ,f$]al en]gy effici5cy res\rce
 /&>d = electricity & natural gas       
suppli]s1 & = o!r purposes4  #a4 ,%ort  
title ,?is ,act may be cit$ z ! ,am]ican
 ,en]gy ,effici5cy ,act4  #b4 ,en]gy    
effici5cy res\rce /&>d = retail         
electricity & natural gas suppli]s  7a7 
,9 g5]al ,title ,,vi ( ! ,public        
,utility ,regulatory ,policies ,act (   
#aigh 7#af ,u4,s4,c4 #bfja et seq47 is  
am5d$ by add+ at ! end ! foll[+3  #faj4 
,f$]al en]gy effici5cy res\rce /&>d =   
retail electricity & natural gas        
suppli]s  7a7 ,def9itions ,9 ?is        
section3 7#a7 ,base quantity  7,a7 ,9   
g5]al ,! t]m base quantity1 ) respect to
 a retail electricity suppli] or retail 

natural gas suppli]1 means1 = ea* cal5d>
 ye> = :i* a p]=mance /&>d is e/abli%$  
"u subsection 7c71 ! av]age annual      
quantity ( electricity or natural gas   
deliv]$ by ! retail electricity suppli] 
or retail natural gas suppli] to retail 
cu/om]s dur+ ! #c cal5d> ye>s imm$iately
 prec$+ ! fir/ ye> t compliance is      
requir$ "u subsection 7c77#a74  7,b7    
,exclusion ,! t]m base quantity1 )      
respect to a retail natural gas suppli]1
 does n include natural gas deliv]$ =   
purposes ( electricity g5]ation4  7#b7  
,cu/om] facility sav+s ,! t]m cu/om]    
facility sav+s means a r$uction 9       
end-use electricity or natural gas      
consumption 7includ+ wa/e heat en]gy    
sav+s7 at a facility ( an end-use       
consum] ( electricity or natural gas    
s]v$ by a retail electricity suppli] or 
natural gas suppli]1 z comp>$ to--  7,a7
 9 ! case ( a new facility1 consumption 
at a ref]5ce facility ( av]age          
effici5cy2  7,b7 9 ! case ( an exi/+    
facility1 consumption at ! facility dur+

 a base p]iod ( n less ?an #a ye>2  7,c7
 9 ! case ( new equipm5t t replaces     
exi/+ equipm5t at ! end ( ! useful life 
( ! exi/+ equipm5t1 consumption by new  
equipm5t ( av]age effici5cy ( ! same    
equipm5t type1 except t cu/om] sav+s "u 
?is subp>agraph %all n be c\nt$ t[>ds   
cu/om] sav+s "u subp>agraph 7,a7 or     
7,b72 &  7,d7 9 ! case ( new equipm5t t 
replaces exi/+ equipm5t ) rema9+ useful 
life-- 7i7 consumption ( ! exi/+        
equipm5t = ! rema9+ useful life ( !     
equipm5t2 &  7ii7 !reaft]1 consumption (
 new equipm5t ( av]age effici5cy4  7#c7 
,electricity sav+s ,! t]m electricity   
sav+s means r$uctions 9 electricity     
consumption a*iev$ ?r\gh measures       
implem5t$ aft] ! date ( enactm5t ( ?is  
section1 z det]m9$ 9 accordance )       
regulations promulgat$ by ! ,secret>y1 t
 are limit$ to--  7,a7 cu/om] facility  
sav+s ( electricity1 adju/$ to reflect  
any associat$ increase 9 fuel           
consumption at ! facility2  7,b7        
r$uctions 9 di/ribution sy/em losses (  

electricity a*iev$ by a retail          
electricity suppli]1 z comp>$ to losses 
attributable to new or replacem5t       
di/ribution sy/em equipm5t ( av]age     
effici5cy1 z def9$ 9 regulations        
promulgat$ by ! ,secret>y2  7,c7 ,,*p   
sav+s2  7,d7 codes & /&>ds sav+s (      
electricity2 &  7,e7 fuel swit*+ en]gy  
sav+s t results 9 net sav+s (           
electricity4  7#d7 ,natural gas sav+s ,!
 t]m natural gas sav+s means r$uctions 9
 natural gas consumption f measures     
implem5t$ aft] ! date ( enactm5t ( ?is  
section1 z det]m9$ 9 accordance )       
regulations promulgat$ by ! ,secret>y1 t
 are limit$ to--  7,a7 cu/om] facility  
sav+s ( natural gas1 adju/$ to reflect  
any associat$ increase 9 electricity    
consumption or consumption ( o!r fuels  
at ! facility2  7,b7 r$uctions 9        
leakage1 op]ational losses1 &           
consumption ( natural gas fuel to op]ate
 a gas di/ribution sy/em1 a*iev$ by a   
retail natural gas suppli]1 z comp>$ to 
simil> leakage1 losses1 & consumption   

dur+ a base p]iod ( n less ?an #a ye>2  
7,c7 codes & /&>ds sav+s ( natural gas2 
&  7,d7 fuel swit*+ en]gy sav+s t       
results 9 net sav+s ( natural gas4  7#e7
 ,retail electricity suppli]  7,a7 ,9   
g5]al ,! t]m retail electricity suppli] 
means1 = any giv5 cal5d> ye>1 an        
electric utility t sells n less ?an     
#a1jjj1jjj megawatt h\rs ( electric     
en]gy to electric consum]s = purposes   
o!r ?an resale dur+ ! prec$+ cal5d> ye>4
  7,b7 ,inclusions & limitations ,=     
purposes ( det]m9+ :e!r an electric     
utility qualifies z a retail electricity
 suppli] "u subp>agraph 7,a7--  7i7     
deliv]ies by any affiliate ( an electric
 utility to electric consum]s = purposes
 o!r ?an resale %all be consid]$ to be  
deliv]ies by ! electric utility2 &  7ii7
 deliv]ies by any electric utility to a 
lessee1 t5ant1 or affiliate ( ! electric
 utility %all n be consid]$ to be       
deliv]ies to electric consum]s4  7#f7   
,retail natural gas suppli]  7,a7 ,9    
g5]al ,! t]m retail natural gas suppli] 

means1 = any giv5 cal5d> ye>1 a local   
di/ribution company 7z def9$ 9 section  
#b ( ! ,natural ,gas ,policy ,act (     
#aigh 7#ae ,u4,s4,c4 #ccja771 t deliv]$ 
to natural gas consum]s m ?an           
#e1jjj1jjj1jjj cubic feet ( natural gas 
= purposes o!r ?an resale dur+ ! prec$+ 
cal5d> ye>4  7,b7 ,inclusions &         
limitations ,= purposes ( det]m9+ :e!r a
 p]son qualifies z a retail natural gas 
suppli] "u subp>agraph 7,a7--  7i7      
deliv]ies ( natural gas by any affiliate
 ( a local di/ribution company to       
consum]s = purposes o!r ?an resale %all 
be consid]$ to be deliv]ies by ! local  
di/ribution company2 &  7ii7 deliv]ies (
 natural gas to a lessee1 t5ant1 or     
affiliate ( a local di/ribution company 
%all n be consid]$ to be deliv]ies to   
natural gas consum]s4  7b7 ,e/abli%m5t (
 program  7#a7 ,regulations ,n lat] ?an 
#a ye> aft] ! date ( enactm5t ( ?is     
section1 ! ,secret>y %all1 by           
regulation1 e/abli% a program to        
implem5t & en=ce ! requirem5ts ( ?is    

section1 includ+ by--  7,a7 def9+ ! t]ms
 ,,*p sav+s1 code & /&>ds sav+s1 comb9$ 
heat & p[] sy/em1 co/-effective1 fuel   
swit*+ en]gy sav+s1 report+ p]iod1      
?ird-p>ty effici5cy provid]1 & wa/e heat
 en]gy sav+s2  7,b7 e/abli%+ measurem5t 
& v]ification proc$ures & /&>ds t c\nt  
only measures & sav+s t are additional  
to bus9ess-z-usual cu/om] pur*ase       
practices2  7,c7 e/abli%+ requirem5ts "u
 :i* retail electricity suppli]s &      
retail natural gas suppli]s %all--  7i7 
demon/rate1 docum5t1 & report !         
compliance ( ! retail electricity       
suppli]s & retail natural gas suppli]s )
 ! p]=mance /&>ds "u subsection 7c72 &  
7ii7 e/imate ! impact ( ! /&>ds on      
curr5t & future electricity & natural   
gas use 9 ! s]vice t]ritories ( !       
suppli]s2  7,d7 e/abli%+ requirem5ts    
gov]n+ applications =1 & implem5tation  
(1 delegat$ ,/ate adm9i/ration "u       
subsection 7e72 &  7,e7 e/abli%+ rules  
to gov]n transf]s ( electricity or      
natural gas sav+s betwe5 suppli]s &     

?ird-p>ty effici5cy provid]s s]v+ ! same
 ,/ate & betwe5 suppli]s & ?ird-p>ty    
effici5cy provid]s s]v+ diff]5t ,/ates4 
7#b7 ,coord9ation ) ,/ate programs ,9   
e/abli%+ & implem5t+ ?is section1 !     
,secret>y %all1 to ! maximum ext5t      
practicable1 pres]ve ! integrity &      
incorporate be/ practices ( exi/+ ,/ate 
en]gy effici5cy programs4  7c7 ,p]=mance
 /&>ds  7#a7 ,compliance obligation ,n  
lat] ?an ,may #a ( ! cal5d> ye>         
imm$iately foll[+ ea* report+ p]iod--   
7,a7 ea* retail electricity suppli] %all
 submit to ! ,secret>y a report1 9      
accordance ) regulations promulgat$ by !
 ,secret>y1 demon/rat+ t ! retail       
electricity suppli] has a*iev$          
cumulative electricity sav+s 7adju/$ to 
acc\nt = any attrition ( sav+s measures 
implem5t$ 9 prior ye>s7 9 ea* cal5d> ye>
 t are equal to ! applicable p]c5tage ( 
! base quantity ( ! retail electricity  
suppli]2 &  7,b7 ea* retail natural gas 
suppli] %all submit to ! ,secret>y a    
report1 9 accordance ) regulations      

promulgat$ by ! ,secret>y1 demon/rat+ t 
x has a*iev$ cumulative natural gas     
sav+s 7adju/$ to acc\nt = any attrition 
( sav+s measures implem5t$ 9 prior ye>s7
 9 ea* cal5d> ye> t are equal to !      
applicable p]c5tage ( ! base quantity ( 
su* retail natural gas suppli]4  7#b7   
,/&>ds = #bjag ?r\gh #bjcj ,= ea* (     
cal5d> ye>s #bjag ?r\gh #bjcj1 !        
applicable p]c5tages are z foll[s3      
,cal5d> ,year,cumulative ,electricity   
,sav+s ,percentage,cumulative ,natural  
,gas ,sav+s ,p]c5tage#bjag #a4jj        
#j4ejbjah #b4jj #a4bebjai #c4jj         
#b4jjbjbj #d4be #c4jjbjba #e4ej         
#d4jjbjbb #g4jj #e4jjbjbc #h4ej         
#f4jjbjbdaj4jj #g4jjbjbeaa4ej           
#h4jjbjbfac4jj                          
#i4jjbjbgad4geaj4jjbjbhaf4ejaa4jjbjbiah4
beab4jjbjcjbj4jjac4jj4  7#c7 ,subsequ5t 
ye>s  7,a7 ,cal5d> ye>s #bjca ?r\gh     
#bjdj ,n lat] ?an ,decemb] #ca1 #bjbh1 !
 ,secret>y %all promulgate regulations  
e/abli%+ p]=mance /&>ds 7express$ z     
applicable p]c5tages ( base quantity =  

bo? cumulative electricity sav+s &      
cumulative natural gas sav+s7 = ea* (   
cal5d> ye>s #bjca ?r\gh #bjdj4  7,b7    
,requirem5ts ,! ,secret>y %all e/abli%  
/&>ds "u ?is p>agraph at levels reflect+
 ! maximum a*ievable level (            
co/-effective en]gy effici5cy pot5tial1 
tak+ into acc\nt--  7i7 co/-effective   
en]gy sav+s a*iev$ by lead+ retail      
electricity suppli]s & retail natural   
gas suppli]s2  7ii7 opportunities = new 
codes & /&>d sav+s2  7iii7 te*nology    
improvem5ts2 &  7iv7 o!r indicators (   
co/-effective en]gy effici5cy pot5tial  
includ+ diff]5ces betwe5 ,/ates4  7,c7  
,m9imum p]c5tage ,9 no case %all !      
applicable p]c5tages = any cal5d> ye> be
 less ?an ! applicable p]c5tages =      
cal5d> ye> #bjcj4  7#d7 ,delay (        
submission = fir/ report+ p]iod  7,a7 ,9
 g5]al ,not)/&+ p>agraphs 7#a7 & 7#b71 =
 ! #bjag report+ p]iod1 ! ,secret>y may 
accept a reque/ f a retail electricity  
suppli] or a retail natural gas suppli] 
to delay ! requir$ submission (         

docum5tation ( all or "p ( ! requir$    
sav+s = up to #b ye>s4  7,b7 ,plan =    
compliance ,! reque/ = delay "u         
subp>agraph 7,a7 %all include a plan =  
com+ into full compliance by ! end ( !  
#bjah-bjai report+ p]iod4  7#e7 ,apply+ 
unus$ sav+s to future ye>s ,if sav+s    
a*iev$ 9 a ye> exce$ ! p]=mance /&>ds   
specifi$ 9 ?is subsection1 any sav+s 9  
excess ( ! p]=mance /&>ds may be appli$ 
t[>d p]=mance /&>ds specifi$ = future   
ye>s4  7d7 ,en=cem5t & judicial review  
7#a7 ,review ( retail suppli] reports   
7,a7 ,9 g5]al ,! ,secret>y %all review  
ea* report submitt$ to ! ,secret>y by a 
retail electricity suppli] or retail    
natural gas suppli] "u subsection 7c7 to
 v]ify t ! applicable p]=mance /&>ds "u 
subsection 7c7 h be5 met4  7,b7         
,exclusion ,9 det]m9+ compliance ) !    
applicable p]=mance /&>ds "u subsection 
7c71 ! ,secret>y %all exclude report$   
electricity sav+s or natural gas sav+s t
 are n adequately demon/rat$ & docum5t$1
 9 accordance ) ! regulations promulgat$

 "u subsections 7b7 & 7c74  7#b7 ,p5alty
 = failure to docum5t adequate sav+s ,if
 a retail electricity suppli] or a      
retail natural gas suppli] fails to     
demon/rate compliance ) an applicable   
p]=mance /&>d "u subsection 7c71 or to  
pay to ! ,/ate an applicable alt]native 
compliance paym5t "u subsection 7e77#c71
 ! ,secret>y %all assess aga9/ ! retail 
electricity suppli] or retail natural   
gas suppli] a civil p5alty = ea* failure
 9 an am\nt equal to1 z adju/$ =        
inflation 9 accordance ) su* regulations
 z ! ,secret>y may promulgate--  7,a7   
#ajj p] megawatt h\r ( electricity sav+s
 or alt]native compliance paym5t t !    
retail electricity suppli] fail$ to     
a*ieve or make1 respectively2 or  7,b7  
#aj p] million ,btu ( natural gas sav+s 
or alt]native compliance paym5t t !     
retail natural gas suppli] fail$ to     
a*ieve or make1 respectively4  7#c7     
,(fsett+ /ate p5alties ,! ,secret>y %all
 r$uce ! am\nt ( any p5alty "u p>agraph 
7#b7 by ! am\nt paid by ! relevant      

retail electricity suppli] or retail    
natural gas suppli] to a ,/ate = failure
 to comply ) ! requirem5ts ( a ,/ate    
en]gy effici5cy res\rce /&>d dur+ ! same
 compliance p]iod4  7#d7 ,en=cem5t      
proc$ures ,! ,secret>y %all assess a    
civil p5alty1 z provid$ "u p>agraph     
7#b71 9 accordance ) ! proc$ures        
describ$ 9 section #ccc7;d7 ( ! ,en]gy  
,policy & ,cons]vation ,act ( #aied 7#db
 ,u4,s4,c4 #fcjc74  7e7 ,/ate           
adm9i/ration  7#a7 ,9 g5]al ,^u receipt 
( an application f ! ,gov]nor ( a ,/ate 
7includ+ ! ,mayor ( ! ,di/rict (        
,columbia71 ! ,secret>y may delegate to 
! ,/ate responsibility = adm9i/]+ ?is   
section )9 ! t]ritory ( ! ,/ate if !    
,secret>y det]m9es t ! ,/ate w implem5t 
an en]gy effici5cy program t meets or   
exce$s ! requirem5ts ( ?is section4     
7#b7 ,secret>ial det]m9ation ,n lat] ?an
 #ahj days aft] ! date on :i* a complete
 application is receiv$ by ! ,secret>y1 
! ,secret>y %all make a sub/antive      
det]m9ation approv+ or disapprov+ a     

,/ate application1 aft] public notice & 
comm5t4  7#c7 ,alt]native compliance    
paym5ts  7,a7 ,9 g5]al ,z "p ( an       
application submitt$ "u p>agraph 7#a71 a
 ,/ate may p]mit retail electricity     
suppli]s or retail natural gas suppli]s 
to pay to ! ,/ate1 by n lat] ?an ,may #a
 ( ! cal5d> ye> imm$iately foll[+ !     
applicable report+ p]iod1 an alt]native 
compliance paym5t 9 an am\nt equal to1 z
 adju/$ = inflation 9 accordance ) su*  
regulations z ! ,secret>y may           
promulgate1 n less ?an--  7i7 #ej p]    
megawatt h\r ( electricity sav+s ne$$ to
 make up any deficit ) reg>d to a       
compliance obligation "u ! applicable   
p]=mance /&>d2 or  7ii7 #e p] million   
,btu ( natural gas sav+s ne$$ to make up
 any deficit ) reg>d to a compliance    
obligation "u ! applicable p]=mance     
/&>d4  7,b7 ,use ( paym5ts ,alt]native  
compliance paym5ts collect$ by a ,/ate  
"u subp>agraph 7,a7 %all be us$ by !    
,/ate to adm9i/] ! delegat$ au?ority ( !
 ,/ate "u ?is section & to implem5t     

co/-effective en]gy effici5cy programs  
t--  7i7 to ! maximum ext5t practicable1
 a*ieve electricity sav+s & natural gas 
sav+s 9 ! ,/ate suffici5t to make up !  
deficit associat$ ) ! alt]native        
compliance paym5ts2 &  7ii7 c be measur$
 & v]ifi$ 9 accordance ) ! applicable   
proc$ures & /&>ds "u subsection         
7b77#a77;,b74  7#d7 ,review ( /ate      
implem5tation  7,a7 ,p]iodic review ,e  
#b ye>s1 ! ,secret>y %all review ,/ate  
implem5tation ( ?is section = con=mance 
) ! requirem5ts ( ?is section 9         
approximately #a_/b ( ! ,/ates t h      
receiv$ approval "u ?is subsection to   
adm9i/] ! program1 s t ea* ,/ate %all be
 review$ at lea/ e #d ye>s4  7,b7       
,report ,to facilitate ! review "u      
subp>agraph 7,a71 ! ,secret>y may       
require ! ,/ate to submit a report      
demon/rat+ ! con=mance ( ! ,/ate ) !    
requirem5ts ( ?is section4  7,c7        
,defici5cies  7i7 ,9 g5]al ,9 complet+ a
 review "u ?is p>agraph1 if ! ,secret>y 
f9ds defici5cies1 ! ,secret>y %all--    

7,i7 notify ! ,/ate ( ! defici5cies2    
7,,ii7 direct ! ,/ate to correct !      
defici5cies2 &  7,,iii7 require ! ,/ate 
to report to ! ,secret>y on progress    
made by n lat] ?an #ahj days aft] ! date
 on :i* ! ,/ate receives notice "u      
subclause 7,i74  7ii7 ,sub/antial       
defici5cies ,if ! defici5cies are       
sub/antial1 ! ,secret>y %all-- 7,i7     
disall[ ! report$ electricity sav+s or  
natural gas sav+s t ! ,secret>y det]m9es
 are n cr$ible due to defici5cies2      
7,,ii7 re-review ! ,/ate n lat] ?an #b  
ye>s aft] ! date on :i* ! orig9al review
 0 complet$2 &  7,,iii7 if sub/antial   
defici5cies rema9 uncorrect$ aft] !     
review provid$ = "u subclause 7,,ii71   
revoke ! au?ority ( ! ,/ate to adm9i/] !
 program e/abli%$ "u ?is section4  7f7  
,in=mation & reports ,9 accordance )    
section #ac ( ! ,f$]al ,en]gy           
,adm9i/ration ,act ( #aigd 7#ae         
,u4,s4,c4 #ggb71 ! ,secret>y may require
 any retail electricity suppli]1 retail 
natural gas suppli]1 ?ird-p>ty effici5cy

 provid]1 or any o!r entity t !         
,secret>y det]m9es appropriate1 to      
provide any in=mation ! ,secret>y       
det]m9es appropriate to c>ry out ?is    
section4  7g7 ,/ate law ,no?+ 9 ?is     
section dim9i%es or qualifies any       
au?ority ( a ,/ate or political         
subdivision ( a ,/ate to adopt or en=ce 
any law or regulation respect+          
electricity sav+s or natural gas sav+s1 
includ+ any law or regulation e/abli%+  
en]gy effici5cy requirem5ts t are m     
/r+5t ?an ^? "u ?is section1 except t no
 ,/ate law or regulation %all relieve   
any p]son ( any requirem5t o!rwise      
applicable "u ?is section4  4  7b7      
,con=m+ am5dm5t ,! table ( cont5ts ( !  
,public ,utility ,regulatory ,policies  
,act ( #aigh 7#af ,u4,s4,c4 prec4 #bfja7
 is am5d$ by add+ at ! end ( ! items    
relat+ to title ,,vi ! foll[+3  ,sec4   
#fji4 ,rural & remote communities       
electrification grants4,sec4 #faj4      
,f$]al en]gy effici5cy res\rce /&>d =   
retail electricity & natural gas        

suppli]s4  4